Berkshire Hathaway doubles buybacks as operating income slips
Seven Lights
Berkshire Hathaway said Saturday it spent about $9.6 billion repurchasing its own shares in the third quarter, more than double the $4.5 billion bought back in the second, even as operating earnings fell 5.8 percent from a year earlier to $12.705 billion.
The Omaha conglomerate, led by Chief Executive Greg Abel, said the buybacks brought its 2026 repurchases to about $14.4 billion. The step-up signaled the executives viewed the shares as undervalued after a difficult stretch for the stock earlier in the year.
Insurance drove the earnings decline. Underwriting profit tumbled 43 percent to $1.352 billion as the auto insurer Geico faced rising losses and a surge in underwriting expenses. Insurance net investment income fell 14 percent to $2.734 billion, largely on lower short-term interest rates. The railroad, energy and manufacturing segments all grew earnings year over year.
Overall net earnings, which include the results of Berkshire’s sprawling stock portfolio, dropped 28 percent to $22.112 billion from $30.796 billion a year earlier. Investment gains fell nearly 50 percent to $9.407 billion.
The company’s cash pile grew 3 percent in the quarter to $377.435 billion, though excluding rail and utility cash along with Treasury-bill payables, holdings totaled $352.3 billion, down 1.9 percent from the second quarter. Berkshire’s five largest equity holdings were unchanged: Alphabet, American Express, Apple, Bank of America and Coca-Cola.
The results mark the first full earnings cycle under Abel, who took the chief executiveship from Warren Buffett at the start of 2026. Investors have rewarded the transition amid a broad rotation out of technology shares. Berkshire’s Class A shares have gained more than 12 percent over the past month while the S&P 500 has fallen 5.5 percent; year to date Berkshire is up 13 percent against 7.8 percent for the index.
Analysts will watch whether Abel sustains the accelerated buybacks, a tool Buffett wielded aggressively when bargains appeared. The cash hoard, near record levels, leaves Berkshire positioned for large acquisitions or further repurchases. The company reported no new equity purchases in the quarter.