Berkshire's revenue rises 11%, but earnings fall 28%

By Amara Osei

Berkshire Hathaway generated $105.6 billion in third-quarter 2026 revenue, up approximately 11.2% from $95 billion a year earlier. Net earnings attributable to shareholders fell approximately 28.2% to $22.1 billion from $30.8 billion.

At September 30, Berkshire’s insurance and other businesses held $352.3 billion in cash, cash equivalents and U.S. Treasury bills, net of outstanding purchase payables. Berkshire said the liquidity supported its investment flexibility and acquisition strategy.

What drove the earnings decline?

Berkshire attributed stronger results to its railroad, utilities, energy, manufacturing, service and retailing operations. Lower insurance earnings and reduced investment gains partly offset those advances.

Reported earnings per equivalent Class A share totaled $15,502, versus $21,413 in the third quarter of 2025. Class B earnings per equivalent share were $10.33, versus $14.28.

After-tax investment gains fell to $9.4 billion from $17.3 billion a year earlier, and Berkshire said the decline influenced reported earnings substantially. Excluding investment gains, shareholder earnings were approximately $12.7 billion, compared with $13.5 billion.

Berkshire has repeatedly warned that investment gains and losses can create substantial volatility in quarterly net earnings. Accounting rules require changes in market values for many equity investments to flow through reported results.

How did insurance perform?

Insurance underwriting operations produced approximately $1.35 billion in after-tax earnings, down from $2.37 billion. The 42.9% decline reflected lower underwriting earnings across Berkshire’s three major insurance groups.

Nine-month underwriting earnings totaled $4.8 billion, compared with $5.7 billion in 2025. Berkshire reported no losses from significant catastrophe events through September, against approximately $850 million of after-tax catastrophe losses a year earlier.

After-tax insurance investment income fell to $2.73 billion from $3.18 billion. Berkshire attributed the decrease mainly to lower interest income from declining short-term rates; nine-month investment income was approximately $8.47 billion, compared with $9.44 billion.

Which operating businesses grew?

BNSF generated $1.73 billion in after-tax earnings, up 19.3% from $1.45 billion. Railroad transportation revenue rose to $6.84 billion from $5.99 billion.

Berkshire credited higher shipping volumes and operating efficiencies for BNSF’s improvement, while higher fuel expenses partly offset the gains. Nine-month after-tax earnings reached $4.66 billion, compared with $4.13 billion.

Berkshire Hathaway Energy produced $1.61 billion in after-tax earnings, up 8.3% from $1.49 billion. Stronger U.S. utilities and natural gas pipeline operations drove the gain, while other energy and real estate brokerage businesses contributed less. For the first nine months, Berkshire Hathaway Energy earned $3.62 billion after tax, compared with $3.29 billion.

Combined after-tax earnings from manufacturing, service and retailing rose 11.8% to $4.04 billion from $3.62 billion. Management credited higher earnings across industrial products and service businesses; nine-month earnings reached $11.71 billion, versus $10.28 billion.

What changed over nine months?

Total revenue for the first nine months reached $301.1 billion, compared with $277.2 billion. Net earnings attributable to shareholders increased to $57.9 billion from $47.8 billion, including approximately $20.9 billion of after-tax investment gains versus $17.2 billion.

How much capital did Berkshire deploy?

Berkshire also reported approximately $352.6 billion in equity and fixed-maturity securities, excluding equity method investments. Insurance float totaled approximately $178.5 billion, up $2.1 billion from year-end 2025.

Float consists of funds held by insurance companies that can be invested before claims and other obligations are paid. Berkshire said its liquidity supported investment flexibility and its acquisition strategy.

Berkshire acquired OxyChem in January 2026 for approximately $9.4 billion. It completed the TMHC acquisition in July for approximately $6.8 billion in aggregate cash consideration.

Shareholders’ equity increased to approximately $761.4 billion as of September 30, from $717.4 billion on December 31, 2025. Total assets reached approximately $1.3 trillion, versus $1.22 trillion at year-end, while nine-month operating cash flow totaled $33.9 billion, compared with $34.8 billion.

Berkshire acquired approximately $14.4 billion of treasury stock during the first nine months. The purchases included September transactions that settled in October; third-quarter repurchases totaled approximately $9.65 billion on the basis reported in its shareholders’ equity statement.

Under its stated policy, Berkshire buys shares when it determines the stock price is “below a conservatively estimated intrinsic value.” The company “does not commit to a minimum repurchase amount” and requires consolidated cash, cash equivalents and U.S. Treasury bill holdings to remain above $30 billion.

What comes next?

Berkshire cautions that short-term investment gains and losses “do not necessarily reflect the underlying economic performance of its operating businesses.” Its large investment portfolio remains an important driver of reported earnings, while BNSF, energy and industrial operations supplied the operating counterweight to weaker insurance results.

Berkshire continues to emphasize financial strength and liquidity while allocating capital toward acquisitions, investments and share repurchases. The next quarter will test its ability to deploy $352.3 billion of liquidity while preserving operating gains, even as market-value changes keep reported net earnings volatile.