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Berkshire Hathaway Cuts Cash, Boosts Buybacks, and Posts Strong Q2 2026 Earnings
Berkshire Hathaway Inc. announced a robust second‑quarter performance, lifting operating profit by 16% to $12.98 billion and net income to $25.67 billion.
The conglomerate also announced a significant reduction in its cash balance and a sharp increase in share repurchases. Berkshire began to pull back from its vast cash hoard, trimming its balance from $380.2 billion at the end of March to $364.7 billion by June. The move follows a nearly two‑year lull in share buybacks. In the three months from April to June, the company bought back $4.5 billion of its own stock, and it added a further $3.3 billion in July, totaling $7.8 billion for the year—roughly a third of the $27 billion peak reached in 2021.
During the quarter, Berkshire deepened its tech exposure, adding $10 billion to its Alphabet holdings and raising its stake to roughly $20 billion. Late July brought a $6.8 billion purchase of shares in homebuilder Taylor Morrison. Across all transactions, Berkshire bought nearly $20 billion more in equity than it divested, breaking a 14‑quarter streak of net selling.
Operating profit climbed from $11.16 billion a year earlier, a lift powered by gains at BNSF Railway, NetJets, and TTI Electronics. Those gains countered a slump at Geico. Revenue, after a period of flatness, rose 10% to $101.81 billion.
Net income more than doubled to $25.67 billion, a jump largely attributable to unrealized gains and losses on Berkshire’s equity portfolio. The company advised investors to set aside the volatility that such unrealized items can introduce.
Geico’s pre‑tax underwriting profit fell 45% amid rising accident claims and higher marketing spend aimed at recapturing customers lost during a multi‑year drive to tighten underwriting and cut overhead. The broader insurance and reinsurance profit slipped 11%.
BNSF Railway posted a 6% profit uptick to $1.56 billion, citing stronger freight volumes and fuel‑price adjustments. Berkshire Hathaway Energy saw a 27% jump to $891 million, buoyed by higher utility margins and tax credits.
This was the second quarter under Greg Abel, who took the helm in early 2026 after Warren Buffett stepped down. Abel has started tapping Berkshire’s cash reserves—a shift from Buffett’s historically cautious stance. The firm explained that its buyback policy is driven by a conservative valuation of intrinsic worth, developed in consultation with Buffett.
Berkshire flagged “considerable uncertainty” surrounding macroeconomic and geopolitical developments, from tariffs to conflicts. It also noted declining demand in consumer‑facing units—including its 103 car and truck dealerships, Fruit of the Loom, and Forest River RVs—linking the slowdown to shifts in consumer confidence.
Berkshire’s market cap sits near 1.5 times book value. Class A shares have edged up 3% year‑to‑date, trailing the S&P 500’s 13% rise. Since Buffett’s retirement announcement in May 2025, the stock has trailed the index by 40 percentage points.
Berkshire Hathaway’s Q2 2026 filing signals a shift toward capital deployment: a trimmed cash reserve, heightened buybacks, and fresh stakes in Alphabet and Taylor Morrison. While operating profit and revenue climbed, Geico’s performance lagged. The conglomerate keeps a wary eye on macro uncertainty while continuing to allocate capital under Greg Abel’s stewardship.
The conglomerate also announced a significant reduction in its cash balance and a sharp increase in share repurchases. Berkshire began to pull back from its vast cash hoard, trimming its balance from $380.2 billion at the end of March to $364.7 billion by June. The move follows a nearly two‑year lull in share buybacks. In the three months from April to June, the company bought back $4.5 billion of its own stock, and it added a further $3.3 billion in July, totaling $7.8 billion for the year—roughly a third of the $27 billion peak reached in 2021.
During the quarter, Berkshire deepened its tech exposure, adding $10 billion to its Alphabet holdings and raising its stake to roughly $20 billion. Late July brought a $6.8 billion purchase of shares in homebuilder Taylor Morrison. Across all transactions, Berkshire bought nearly $20 billion more in equity than it divested, breaking a 14‑quarter streak of net selling.
Operating profit climbed from $11.16 billion a year earlier, a lift powered by gains at BNSF Railway, NetJets, and TTI Electronics. Those gains countered a slump at Geico. Revenue, after a period of flatness, rose 10% to $101.81 billion.
Net income more than doubled to $25.67 billion, a jump largely attributable to unrealized gains and losses on Berkshire’s equity portfolio. The company advised investors to set aside the volatility that such unrealized items can introduce.
Geico’s pre‑tax underwriting profit fell 45% amid rising accident claims and higher marketing spend aimed at recapturing customers lost during a multi‑year drive to tighten underwriting and cut overhead. The broader insurance and reinsurance profit slipped 11%.
BNSF Railway posted a 6% profit uptick to $1.56 billion, citing stronger freight volumes and fuel‑price adjustments. Berkshire Hathaway Energy saw a 27% jump to $891 million, buoyed by higher utility margins and tax credits.
This was the second quarter under Greg Abel, who took the helm in early 2026 after Warren Buffett stepped down. Abel has started tapping Berkshire’s cash reserves—a shift from Buffett’s historically cautious stance. The firm explained that its buyback policy is driven by a conservative valuation of intrinsic worth, developed in consultation with Buffett.
Berkshire flagged “considerable uncertainty” surrounding macroeconomic and geopolitical developments, from tariffs to conflicts. It also noted declining demand in consumer‑facing units—including its 103 car and truck dealerships, Fruit of the Loom, and Forest River RVs—linking the slowdown to shifts in consumer confidence.
Berkshire’s market cap sits near 1.5 times book value. Class A shares have edged up 3% year‑to‑date, trailing the S&P 500’s 13% rise. Since Buffett’s retirement announcement in May 2025, the stock has trailed the index by 40 percentage points.
Berkshire Hathaway’s Q2 2026 filing signals a shift toward capital deployment: a trimmed cash reserve, heightened buybacks, and fresh stakes in Alphabet and Taylor Morrison. While operating profit and revenue climbed, Geico’s performance lagged. The conglomerate keeps a wary eye on macro uncertainty while continuing to allocate capital under Greg Abel’s stewardship.
