Berkshire Hathaway more than doubles buybacks in third quarter as earnings decline
Berkshire Hathaway said Saturday it accelerated its share repurchases during the third quarter, as operating and overall profits took a hit.
Key points
- Berkshire bought back $9.6 billion of its own stock in the third quarter, more than double the prior quarter.
- Operating earnings fell 5.8% to $12.705 billion as insurance underwriting dropped 43%.
- Overall earnings fell 28% to $22.112 billion, and Berkshire's cash grew 3% to $377.435 billion.
Berkshire Hathaway more than doubled its share buybacks in the third quarter, repurchasing $9.6 billion of its own stock, the company said Saturday. That compares with $4.5 billion in the second quarter and brings total buybacks for 2026 to about $14.4 billion.
The increased repurchases came as both operating and overall profits declined. Berkshire's operating earnings, which come from wholly-owned businesses, fell 5.8% to $12.705 billion from $13.485 billion a year earlier.
Insurance drags on operating profit
Insurance underwriting fell 43% year on year to $1.352 billion, and insurance investment income dropped 14% to $2.734 billion. Berkshire's railroad, energy and manufacturing businesses all posted higher earnings than a year earlier.
Overall earnings, which include the company's stock portfolio, fell 28% to $22.112 billion from $30.796 billion. Investment gains dropped nearly 50% to $9.407 billion.
Stock performance and cash
Berkshire's Class A shares have risen more than 12% over the past month, while the S&P 500 fell 5.5% in the same period. Year to date, Berkshire is up 13% against 7.8% for the index.
The company's cash holdings grew 3% to $377.435 billion from $365.514 billion in the second quarter. Excluding rail and utility cash and T-bill payables, cash totaled $352.3 billion, down 1.9% from the prior quarter. Berkshire's five largest equity holdings were unchanged: Alphabet, American Express, Apple, Bank of America and Coca-Cola.
