Berkshire Hathaway Reports 5.8% Decline in Q3 Operating Earnings to $12.71 Billion

Berkshire Hathaway (NYSE:BRK.B) reported operating earnings of $12.705 billion for the third quarter of 2026, a decline of approximately 5.8% from $13.485 billion in the corresponding period of 2025, as lower insurance earnings offset increases across several other business segments.

Net earnings attributable to Berkshire shareholders fell to $22.112 billion from $30.796 billion a year earlier, reflecting a reduction in investment gains included in the company’s reported results.

For the first nine months of 2026, however, net earnings increased to $57.885 billion, compared with $47.769 billion during the same period of 2025.

The conglomerate also disclosed approximately $9.6 billion in share repurchases during the quarter, bringing its total repurchases for the first nine months of the year to approximately $14.4 billion.

Quarterly Net Earnings Decline as Investment Gains Decrease

Berkshire Hathaway reported third-quarter net earnings attributable to shareholders of $22.112 billion, compared with $30.796 billion in the prior-year quarter, representing a decrease of approximately 28.2%.

Net earnings per average equivalent Class A share declined to $15,502 from $21,413 in the third quarter of 2025.

The company’s nine-month results showed a different trend, with net earnings rising to $57.885 billion from $47.769 billion a year earlier, an increase of approximately 21.2%.

Net earnings per average equivalent Class A share for the first nine months reached $40,377, compared with $33,214 in the corresponding period of 2025.

Berkshire noted that investment gains and losses can create substantial fluctuations in reported net earnings, making quarterly comparisons less representative of the underlying performance of its operating businesses.

Insurance Operations Record Lower Earnings

Berkshire’s insurance businesses reported declines in both underwriting earnings and investment income during the third quarter.

Insurance underwriting earnings fell to $1.352 billion from $2.369 billion in the corresponding period of 2025, a decrease of approximately 42.9%.

Insurance investment income declined to $2.734 billion from $3.181 billion a year earlier, representing a reduction of approximately 14.1%.

The combined decline in these two insurance-related earnings categories contributed to the reduction in Berkshire’s overall operating earnings.

The company’s insurance operations remain an important component of its business, generating underwriting results and investment income from assets held to support insurance liabilities.

BNSF, Energy and Other Businesses Report Higher Earnings

Several of Berkshire Hathaway’s non-insurance operations recorded increases in operating earnings during the quarter.

Railroad operator BNSF contributed $1.729 billion, compared with $1.449 billion in the third quarter of 2025, representing growth of approximately 19.3%.

Berkshire Hathaway Energy reported operating earnings of $1.612 billion, up from $1.489 billion a year earlier, an increase of approximately 8.3%.

The conglomerate’s manufacturing, service and retailing businesses generated combined earnings of $4.042 billion, compared with $3.616 billion in the prior-year period, representing growth of approximately 11.8%.

These increases partially offset the lower contribution from Berkshire’s insurance operations.

Investment Gains Fall to $9.41 Billion

Berkshire reported investment gains of $9.407 billion in the third quarter of 2026, compared with $17.311 billion in the same period of 2025.

The decrease amounted to approximately $7.904 billion.

According to the company, these gains primarily reflected changes in unrealised gains on equity securities held in its investment portfolio.

Berkshire cautioned that investment gains and losses recorded during individual quarters should not be regarded as indicators of the performance of its operating businesses.

Changes in market valuations can affect reported net earnings even when the underlying securities have not been sold.

The company therefore distinguishes operating earnings from total net earnings when discussing its financial performance.

Berkshire Repurchases $9.6 Billion in Shares During Quarter

Berkshire Hathaway disclosed approximately $9.6 billion in treasury share repurchases during the third quarter of 2026.

The purchases brought the total value of shares repurchased during the first nine months of the year to approximately $14.4 billion.

The figures indicate that Berkshire allocated a substantial amount of capital to repurchasing its own shares during the reporting period.

The company did not provide additional details in the supplied announcement regarding the timing or volume of individual transactions.

Insurance Float Increases to $178.5 Billion

As of September 30, 2026, Berkshire Hathaway’s insurance float stood at approximately $178.5 billion.

The figure represented an increase of about $2.1 billion compared with the end of 2025.

Insurance float generally consists of funds collected through insurance operations that Berkshire holds before paying related claims and other obligations.

These funds provide a source of capital that can be invested while the associated insurance liabilities remain outstanding.

The increase in float occurred despite the decline in quarterly insurance underwriting earnings and investment income.

Financial Outlook

Berkshire Hathaway’s third-quarter results showed lower operating and net earnings compared with the previous year, primarily reflecting reduced contributions from insurance operations and a decline in reported investment gains.

Higher earnings from BNSF, Berkshire Hathaway Energy and the manufacturing, service and retailing businesses partially offset the insurance-related decreases.

For the first nine months of 2026, net earnings exceeded the prior-year total, while the company reported $14.4 billion in cumulative share repurchases and insurance float of approximately $178.5 billion at the end of September.

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