Berkshire Hathaway reported a 28% decline in third-quarter net earnings to $22.1 billion from $30.8 billion a year earlier, even as CEO Greg Abel’s conglomerate accelerated stock repurchases.
Operating earnings fell 5.8% to $12.7 billion as insurance underwriting profits declined 43% to $1.35 billion and insurance investment income fell 14% to $2.73 billion. GEICO’s underwriting earnings weakened amid higher claims and expenses, while BNSF Railway, Berkshire Hathaway Energy and manufacturing businesses recorded earnings gains.
Berkshire repurchased approximately $9.647 billion of its shares during the quarter, more than twice the $4.527 billion bought in the second quarter. First-quarter purchases were relatively modest, bringing repurchases for the first nine months of 2026 to roughly $14.4 billion.
The increased buybacks came under CEO Greg Abel, who succeeded Warren Buffett at the beginning of 2026 while Buffett remained chairman. Berkshire’s policy authorizes purchases when management believes the share price is below a conservative estimate of intrinsic value.
Third-quarter operating earnings totaled $12.705 billion, down 5.8% from $13.485 billion a year earlier. Berkshire’s net income fell to $22.112 billion from $30.796 billion, partly reflecting a reduction in investment gains.
Insurance underwriting after-tax earnings dropped 43% to $1.352 billion from $2.369 billion. GEICO’s pretax underwriting profit fell to $982 million from $1.773 billion, reflecting higher claim frequency, severity and expenses.
Investment income from the insurance businesses declined 14% to $2.734 billion, with Berkshire attributing much of the reduction to lower interest income as market rates declined.
Other operating businesses fared better. BNSF Railway after-tax earnings rose 19.3% to $1.729 billion, while Berkshire Hathaway Energy increased 8.3% to $1.612 billion. Manufacturing, service and retailing earnings increased nearly 12% to $4.042 billion.
Investment gains, including unrealized changes in the market value of stock holdings, declined to $9.407 billion from $17.311 billion. Berkshire warns that such fluctuations can distort comparisons of quarterly net profit.
The group reported approximately $335.5 billion of equity securities at September 30. Its five largest holdings were Alphabet, American Express, Apple, Bank of America and Coca-Cola. Total assets exceeded $1.3 trillion, with Berkshire shareholder equity of about $761 billion.
The company completed the acquisitions of Occidental Petroleum’s OxyChem business in January and homebuilder Taylor Morrison in July. Berkshire’s sizeable Treasury bill holdings and financial reserves give it capacity for further investments and acquisitions.
Berkshire’s shares recently outperformed the broader market amid a rotation away from technology stocks. Investors will watch Abel’s capital allocation decisions, particularly the balance between acquisitions, public equities, cash holdings and continued repurchases.
Berkshire repurchased approximately $9.6 billion of its shares in the quarter, more than twice the second-quarter amount, bringing year-to-date repurchases to about $14.4 billion. Total revenues reached $105.6 billion for the quarter. Berkshire’s stock portfolio included major positions in Alphabet, American Express, Apple, Bank of America and Coca-Cola, and its holdings of cash and Treasury bills remained substantial.