- Berkshire Hathaway reported a Q2 operating profit of $12.98 billion, which is a 16% increase from the previous year, driven by strong performance in its energy, railroad, and manufacturing sectors.
- In Q2 2026, Berkshire repurchased approximately $4.5 billion of its own shares, marking a significant increase from the $235 million spent in Q1.
- Berkshire became a net buyer of stocks in Q2 2026, purchasing nearly $20 billion more stocks than it sold, thus ending a streak of 14 consecutive quarters as a net seller.
- Berkshire disclosed a $10 billion investment in Alphabet earlier in 2026 to support AI development.
- Berkshire's cash pile decreased to $365.5 billion at the end of June, down from a record $397.4 billion three months earlier.
- Berkshire Hathaway had been a net seller of stocks for 14 consecutive quarters prior to Q2 2026, indicating a significant shift in its investment strategy.
Berkshire Hathaway's operating profit surged 16% to $12.98 billion in Q2, bolstered by robust earnings in its energy, railroad, and manufacturing sectors. This growth offset a decline in insurance profits, particularly at Geico, where pre-tax underwriting profit fell 45% due to rising claims and marketing costs.129
The conglomerate's net income more than doubled to $25.67 billion, aided by unrealized gains on stocks. Revenue also rose by 10% to $101.81 billion, marking a significant recovery from stagnation. Notably, Berkshire's cash reserves decreased to $365.5 billion from a record $397.4 billion as the company began deploying its cash hoard.8
CEO Greg Abel has initiated a shift in strategy, repurchasing $4.5 billion of its own shares and becoming a net buyer of stocks for the first time in 14 quarters, with nearly $20 billion in net purchases. This includes a $10 billion investment in Alphabet, the parent company of Google, aimed at supporting AI development. Abel's leadership marks a new chapter for Berkshire, as the company navigates considerable uncertainty in the macroeconomic landscape, including consumer confidence challenges and geopolitical tensions.3456
Despite the positive earnings report, concerns linger about the performance of its insurance segment, particularly Geico, which has faced significant challenges compared to competitors like Allstate and Progressive. Analysts have raised alarms over Geico's results, describing them as "absolutely abysmal" and indicative of broader market issues.
“Berkshire's cash pile fell to $365.5 billion from a record $397.4 billion, as it repurchased $4.5 billion in Q2 and over $3.3 billion more in July. The company also bought nearly $20 billion more stocks than it sold, ending 14 straight quarters as a net seller.”
CNBC
