Berkshire Hathaway (NYSE: BRK.A, BRK.B) Q3 2026 profit falls 28% to $22.1 bn

Berkshire Hathaway (NYSE: BRK.A, BRK.B) reported a 28.2% decline in third-quarter 2026 net earnings to $22.1 bn, compared with $30.8 bn a year earlier, as lower investment gains and weaker insurance results offset stronger earnings from its railroad, energy and industrial businesses.

Operating earnings fell 5.8% to $12.7 bn from $13.5 bn, primarily reflecting declines in insurance underwriting and investment income.

For the first nine months of 2026, the conglomerate generated $57.9 bn in net earnings, up 21.2% year over year. Operating earnings increased 8% to $37 bn, supported by growth at BNSF, Berkshire Hathaway Energy and its manufacturing, service and retail businesses.

• Berkshire Hathaway’s Q3 net earnings declined 28.2% to $22.1 bn, while operating earnings fell 5.8% to $12.7 bn.
• Insurance underwriting profit decreased 42.9% to $1.35 bn, and insurance investment income declined 14.1% to $2.73 bn.
• BNSF, Berkshire Hathaway Energy and manufacturing businesses reported higher operating profits, while insurance float reached $178.5 bn.

Berkshire repurchased approximately $9.6 bn of its own shares during Q3, bringing total buybacks for the first nine months to $14.4 bn.

Berkshire Hathaway Q3 2026 earnings and investment gains

Berkshire’s reported net earnings were affected by a reduction in investment gains, which declined to $9.4 bn from $17.3 bn in the third quarter of 2025.

The latest figure included $7.7 bn in unrealized gains on equity holdings and $1.7 bn in after-tax realized gains from investment sales. A year earlier, the company recorded $9.2 bn in unrealized gains and $8.1 bn in realized gains.

Realized investment gains fell from $8.1 bn to $1.7 bn year over year, accounting for much of the decline in Berkshire’s reported quarterly net income.

Under US GAAP, Berkshire must recognize changes in the market value of its equity investments in its earnings statements, even when the underlying securities have not been sold.

The company cautioned that these fluctuations can produce substantial changes in reported profit without corresponding movements in operating performance.

Net earnings per equivalent Class A share declined to $15,502 from $21,413. Earnings per Class B share fell to $10.33 from $14.28.

For the first nine months, investment gains increased to $20.85 bn from $17.24 bn. The 2025 comparison also included a $3.76 bn other-than-temporary impairment of Berkshire’s investment in Kraft Heinz.

Berkshire’s nine-month investment gains included $11.6 bn in unrealized gains and $9.3 bn in realized gains. In the corresponding 2025 period, those amounts were $3.3 bn and $14.6 bn, respectively.

The latest nine-month earnings per equivalent Class A share reached $40,377, compared with $33,214 a year earlier. Class B earnings per share increased to $26.92 from $22.14.

Insurance underwriting profit declines 43% in Q3

Berkshire’s insurance underwriting operations reported a third-quarter after-tax profit of $1.35 bn, down from $2.37 bn in Q3 2025.

The 42.9% decline represented the largest negative contribution among the company’s major operating earnings categories.

For the first nine months, insurance underwriting profit decreased 15.7% to $4.8 bn from $5.7 bn.

Insurance underwriting and investment income together generated $4.09 bn in Q3 operating earnings, compared with $5.55 bn a year earlier.

The earnings release did not provide a detailed breakdown of underwriting results by individual insurance subsidiaries, catastrophe losses or combined ratios.

Berkshire’s insurance operations include primary insurance and reinsurance businesses, with underwriting performance subject to claims experience, pricing and reserve developments.

The company’s insurance float increased to approximately $178.5 bn at September 30, up $2.1 bn from year-end 2025.

Float represents the net insurance liabilities held by Berkshire under its insurance contracts. These funds support the group’s investment activities while remaining subject to future policyholder and claimant obligations.

Insurance investment income decreases to $2.73 bn

Insurance investment income declined 14.1% to $2.73 bn in the third quarter, compared with $3.18 bn a year earlier.

For the nine-month period, investment income from insurance operations fell 10.3% to $8.47 bn from $9.44 bn.

The decline occurred despite the increase in insurance float, illustrating the distinction between the amount of funds available for investment and the income recognized during a particular reporting period.

Insurance investment income decreased by $447 mn in Q3 and by $969 mn over the first nine months of 2026.

Berkshire separates recurring insurance investment income from investment gains and losses when calculating operating earnings.

The company considers investment gains and losses an integral part of its business over time but does not regard their quarterly fluctuations as a reliable indicator of operating performance.

Its operating earnings measure therefore excludes investment gains and losses, goodwill and intangible asset impairments, and other-than-temporary impairments of equity-method investments.

BNSF railroad operating earnings increase 19%

Berkshire’s BNSF railroad generated third-quarter after-tax operating earnings of $1.73 bn, up 19.3% from $1.45 bn in the prior-year quarter. Nine-month operating earnings increased 13% to $4.66 bn from $4.13 bn.

BNSF contributed an additional $280 mn in quarterly operating earnings, partially offsetting the decline in Berkshire’s insurance businesses.

The railroad was one of the strongest contributors to operating earnings growth during the quarter.

Berkshire Hathaway Energy also reported higher profits, with third-quarter operating earnings increasing 8.3% to $1.61 bn from $1.49 bn.

For the first nine months, the energy business generated $3.62 bn in operating earnings, compared with $3.29 bn in 2025.

The company’s release did not specify the individual operational factors behind the improvements at BNSF or Berkshire Hathaway Energy.

Manufacturing, service and retail earnings rise 12%

Berkshire’s manufacturing, service and retail businesses increased third-quarter operating earnings to $4.04 bn from $3.62 bn, representing growth of 11.8%. For the first nine months, earnings from these operations reached $11.71 bn, up 14% from $10.28 bn.

The segment was Berkshire’s largest source of operating earnings in Q3, narrowly ahead of the combined contribution from insurance underwriting and insurance investment income.

Manufacturing, service and retail operations generated an additional $426 mn in quarterly profit, while nine-month earnings increased by $1.43 bn.

Other operating earnings declined to $1.24 bn from $1.38 bn in the quarter.

This category included a $343 mn foreign exchange loss associated with debt denominated in currencies other than the US dollar. In Q3 2025, similar currency exposures generated a $331 mn gain.

For the first nine months, other operating earnings increased to $3.77 bn from $1.45 bn, partly reflecting a reversal in currency effects.

Foreign exchange movements contributed a $232 mn gain during the 2026 period, compared with a $1.3 bn loss in the first nine months of 2025.

Berkshire repurchases $14.4 bn of shares in nine months

Berkshire acquired approximately $9.6 bn in treasury shares during the third quarter, bringing its total repurchases for the first nine months of 2026 to $14.4 bn.

The buybacks reduced the number of outstanding shares and contributed to the difference between changes in total earnings and earnings per share.

Berkshire had 1,418,900 Class A equivalent shares outstanding at September 30, compared with a third-quarter average of 1,426,372.

The company reported average equivalent Class B shares outstanding of approximately 2.14 bn during Q3, compared with 2.16 bn a year earlier.

Each Class B share represents 1/1,500 of a Class A share for the earnings-per-share calculation.

Berkshire’s third-quarter results show contrasting developments across its businesses. Insurance earnings declined, while railroad, energy and industrial operations contributed higher profits.

For the nine-month period, operating earnings growth of 8% provides a different measure of underlying business performance from the 21.2% increase in GAAP net income, which also reflects investment gains and the prior-year Kraft Heinz impairment.

Berkshire reiterated that investors should assess its financial performance using the full quarterly filing rather than relying on reported net earnings alone, given the substantial effect that unrealized investment gains can have on individual reporting periods.