NEW YORK, August 9, 2026, 20:31 EDT
- Berkshire bought back $4.5 billion of its shares in the second quarter and over $3.3 billion during July.
- Operating profit increased by 16% to $12.98 billion, with net income climbing more than twofold to $25.67 billion.
- Class B shares closed at $521.80 on Friday, rising 1.69% over the week and up 3.81% so far this year.
Berkshire Hathaway Inc. NYSE:BRK.B has offered its strongest sign so far that Greg Abel intends to put the firm’s capital to more use. The initial assessment is due Monday, following Saturday’s earnings, which revealed a sharp increase in share repurchases and equity acquisitions.
The key figure isn’t the earnings surprise. Berkshire bought back over $7.8 billion of its own stock between April and July, following a first-quarter total of only $235 million.
Abel also broke Berkshire’s streak of 14 consecutive quarters as a net seller of stocks. During the second quarter, the company purchased almost $20 billion more in equities than it sold.
Berkshire’s cash and Treasury-bill reserves fell by $15.5 billion over three months. The company still holds $364.7 billion, providing substantial resources for deals, investments, and buybacks.
| Capital measure | Earlier period | Latest period | Change |
|---|---|---|---|
| Share repurchases | Q1: $0.235 billion | Q2: $4.527 billion | Up 19.3 times |
| Post-quarter repurchases | Q1: $0.235 billion | July: more than $3.3 billion | Increase of over 14 times |
| Cash and Treasury bills | March: $380.2 billion | June: $364.7 billion | Dropped by $15.5 billion |
| Net equity activity | 14 quarters as net seller | Q2: nearly $20 billion net buyer | Shifted direction |
Berkshire is allowed to repurchase shares if prices fall beneath a cautiously calculated intrinsic value. This assessment is now carried out by Abel in consultation with Chairman Warren Buffett, and the recent increase in buyback activity serves as a clear indicator of how the company views its valuation.
The operating units contributed to the performance. Revenue for the quarter was up 10%, reaching $101.81 billion. Operating earnings climbed to $12.98 billion compared with $11.16 billion.
| Operating earnings segment | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Insurance underwriting | $1.731 billion | $1.992 billion | -13.1% |
| Insurance investment income | $3.059 billion | $3.367 billion | -9.1% |
| BNSF railroad | $1.558 billion | $1.466 billion | +6.3% |
| Berkshire Hathaway Energy | $0.891 billion | $0.702 billion | +26.9% |
| Manufacturing, service and retailing | $4.470 billion | $3.601 billion | +24.1% |
| Total operating earnings | $12.983 billion | $11.160 billion | +16.3% |
The headline growth factors in currency effects. A foreign-exchange gain of $326 million stood in for a prior loss of $877 million, accounting for roughly two-thirds of the $1.82 billion rise in operating earnings.
Higher results in industrial and utility sectors compensated for softer insurance performance. Manufacturing, service, and retailing posted the largest absolute increase, with the energy division recording the highest growth rate among main operating segments.
CFRA analyst Cathy Seifert said, “It’s a pretty healthy beat, and investors will be encouraged.” Seifert maintained a neutral rating and noted that Abel was slowly stepping up in his leadership role. Reuters
Net income totaled $25.67 billion, up from $12.37 billion in the previous year. This figure accounts for unrealized investment gains, making operating profit a clearer indicator of Berkshire’s underlying business performance.
Wall Street displays ongoing caution even as spending patterns evolve. FactSet’s latest consensus was downgraded to Hold from Overweight three months earlier, and the $481 median target remained under Friday’s closing price.
| Analyst measure | Three months ago | Current |
|---|---|---|
| Buy ratings | 3 | 2 |
| Overweight ratings | 1 | 0 |
| Hold ratings | 3 | 4 |
| Sell ratings | 1 | 1 |
| Consensus | Overweight | Hold |
| Price targets | Not disclosed | $463.57 low / $481 median / $585 high |
Class B shares slipped 0.54% on Friday ahead of the report, ending the session at $521.80. Despite this, they rose 1.69% over the week and remained just 0.7% under Thursday’s 52-week peak.
Monday’s return to trading will indicate if investors prioritize the recent deployment speed over the gap in insurance coverage. Later this week, Berkshire’s upcoming portfolio filing is expected to provide further insight into its latest equity acquisitions.
Risks: Geico posted a 45% drop in pre-tax underwriting profit to $994 million, attributed to higher claims and marketing expenses. Berkshire cautioned about significant macroeconomic and geopolitical risks, and noted that certain consumer segments experienced weaker demand.
The upcoming week will be shaped by a key issue. Investors need to weigh whether Abel’s accelerated pace of capital deployment compensates for the ongoing stresses in Berkshire’s insurance business.
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