Berkshire Hathaway Q3 profit fell in the third quarter of 2026, the company reported on Saturday, November 7, 2026. Operating earnings fell 5.8 percent to 12.705 billion dollars, down from 13.485 billion dollars a year earlier. Net earnings fell more sharply, to 22.112 billion dollars from 30.796 billion dollars a year earlier. At the same time, the company bought back about 9.6 billion dollars of its own stock in the quarter, and its cash pile reached a record high of 377.4 billion dollars at the end of September.
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The results were released at 8 a.m. ET alongside the company’s quarterly 10-Q filing. Insurance had a weak quarter. The railroad business and the other big operating units grew. And the company ended the quarter with more cash than ever before, even after spending billions on buybacks.
Quick Facts
| Figure | Third Quarter 2026 | A Year Earlier |
|---|---|---|
| Operating earnings | 12.705 billion dollars | 13.485 billion dollars |
| Change in operating earnings | Down 5.8 percent | Not applicable |
| Operating earnings per Class A share | 8,907 dollars | Forecast was 8,821.84 dollars |
| Net earnings attributable to shareholders | 22.112 billion dollars | 30.796 billion dollars |
| Net earnings per Class A share | 15,502 dollars | 21,413 dollars |
| Investment gains | 9.407 billion dollars | 17.311 billion dollars |
| Insurance underwriting earnings | 1.35 billion dollars | 2.37 billion dollars |
| Insurance investment income after tax | 2.734 billion dollars | Down 14.1 percent |
| Stock buybacks in the quarter | About 9.6 billion dollars | Not reported in summary |
| Stock buybacks in first nine months | About 14.4 billion dollars | Not reported in summary |
| Cash and short-term securities | 377.4 billion dollars at September 30, 2026 | 365.5 billion dollars at June 30, 2026 |
| Class A equivalent shares outstanding | 1,418,900 at September 30, 2026 | Not reported in summary |
| Net earnings, first nine months | 57.885 billion dollars | 47.769 billion dollars |
| Operating earnings, first nine months | 37.034 billion dollars | 34.286 billion dollars |
| Chief executive | Greg Abel, third quarter in the role | Not applicable |
Operating Earnings Versus Net Earnings: What Is the Difference?
Two profit numbers sit at the center of every Berkshire Hathaway earnings report, and they tell different stories. Operating earnings show how the company’s businesses performed in their day to day work. Net earnings add investment gains and losses on top of that number. Those gains and losses swing with the stock market, and they can move the bottom line by billions of dollars in a single quarter even when the underlying businesses have not changed much.
In the third quarter of 2026, that gap was easy to see. Operating earnings fell 5.8 percent, a real decline but a modest one. Net earnings fell by a much larger amount, from 30.796 billion dollars to 22.112 billion dollars. The main reason was investment gains, down to 9.407 billion dollars from 17.311 billion dollars a year earlier.
The per share numbers show the same split. Operating earnings per Class A share were 8,907 dollars, above the average analyst forecast of 8,821.84 dollars from four analysts surveyed by FactSet. Net earnings per Class A share were 15,502 dollars, down from 21,413 dollars a year earlier.
This article is not investment advice. The numbers describe what happened in one quarter. They do not tell any individual reader what to buy, sell, or hold. Berkshire Hathaway’s own release urges investors to read the full 10-Q filing, saying the summary is not adequate for making an informed investment judgment.
Insurance Was the Weak Spot in the Quarter
The clearest source of weakness in the third quarter was insurance. Insurance underwriting earnings fell to 1.35 billion dollars from 2.37 billion dollars a year earlier, a drop of about 43 percent. Insurance investment income also fell, down 14.1 percent to 2.734 billion dollars after tax. Together, those two declines explain a large part of the drop in operating earnings.
To understand why that matters, it helps to understand how insurance works inside Berkshire Hathaway. It has two parts. The first part is underwriting, which means taking in premiums from customers and paying out claims. When premiums are higher than claims and costs, underwriting makes a profit. The second part is investment income, which comes from investing the premiums that customers have paid in advance, before claims are paid out.
In this quarter, both parts moved in the wrong direction at the same time. Underwriting earnings dropped by more than a billion dollars compared with a year earlier, and investment income fell by 14.1 percent after tax. The release summary does not give a single cause for either decline, and this article does not invent one.
The contrast with the rest of the group is important. BNSF railroad and the other big operating units grew in the quarter. That growth did not fully offset the insurance decline, which is why operating earnings fell overall, but it kept the decline to 5.8 percent.
The Buyback Story: 9.6 Billion Dollars in One Quarter
While profit fell, Berkshire Hathaway spent heavily on buying back its own stock. The company bought back about 9.6 billion dollars of its own shares in the third quarter, bringing the total for the first nine months of 2026 to about 14.4 billion dollars. The pace picked up sharply, since about 4.8 billion dollars of buybacks took place in the first half of the year, and about 9.6 billion dollars took place in the third quarter alone.
A buyback means the company uses its cash to buy its own shares from the market and then retires them. On September 30, 2026, there were 1,418,900 Class A equivalent shares outstanding. Each remaining share then represents a larger slice of the company than it did before the buyback.
Buybacks are often read as a signal. A company that buys back a lot of stock is saying, in effect, that it has more cash than it can put to work in new deals at prices it likes. It is not the same as paying a dividend. A dividend sends cash directly to shareholders. A buyback reduces the share count, which can lift earnings per share over time because the same profit is spread across fewer shares.
Berkshire Hathaway Q3 Profit: A Record Cash Pile of 377.4 Billion Dollars
Cash, cash equivalents and short-term securities reached 377.4 billion dollars at the end of September 2026, a record high, up from 365.5 billion dollars at the end of June 2026. The cash pile grew by 11.9 billion dollars in three months, even though the company spent about 9.6 billion dollars on buybacks in the same period.
That is a striking figure. Berkshire Hathaway has always kept a large cash reserve, and the reserve has grown as the businesses have thrown off cash faster than the company has found new deals to buy.
The cash figure also stands out against the mood in the wider market. Recent trading has been choppy, and US stocks staged only a tepid recovery after a 3.2 trillion dollar AI rout on November 6. In that kind of market, a company with a huge cash reserve looks different from a company that needs to raise money.
The same contrast shows up in the world of private tech valuations. Anthropic faces valuation risk around a possible 1.5 trillion dollar IPO, a reminder that some of the biggest numbers in the market today rest on future growth hopes. Berkshire Hathaway, by contrast, is sitting on 377.4 billion dollars of cash and short-term securities. None of this means the cash will be spent soon.
The Nine-Month Picture Looks Stronger
The third quarter on its own was weaker than a year earlier, but the first nine months of 2026 as a whole look stronger. For the nine months, net earnings were 57.885 billion dollars, versus 47.769 billion dollars a year earlier. Nine-month operating earnings were 37.034 billion dollars, versus 34.286 billion dollars a year earlier.
That difference is a useful reminder that a single quarter can mislead. Three quarters together smooth out some of the ups and downs. A weak insurance quarter can pull one quarter down, while stronger results earlier in the year keep the nine-month total ahead.
This is why the full 10-Q filing matters. The summary gives the headline totals, but the filing will show how each business performed across the nine months, and how the third quarter fits into that longer picture. Berkshire Hathaway’s own release urges investors to read the full filing, saying the summary is not adequate for making an informed investment judgment.
What the Results Mean for the Rest of the Year
It was Greg Abel’s third quarter as chief executive. The shape of the quarter is familiar: a wide spread of businesses, a weak patch in insurance, growth in the railroad and the other big operating units, heavy buybacks, and a growing cash pile.
The first question for the rest of the year is whether insurance recovers. Underwriting earnings fell about 43 percent, and investment income fell 14.1 percent after tax. If insurance stays weak, operating earnings will stay under pressure.
The second question is what happens to the cash. At 377.4 billion dollars, the pile is now so large that it has become a story in itself. The company spent about 9.6 billion dollars on buybacks in the quarter and still ended with more cash than it started with.
Corporate news more broadly has been busy this week. Amazon faces a December 1 claim deadline in a 309 million dollar return settlement. For readers, the practical takeaway is to read the full 10-Q filing before forming a firm view. This article is a report on the numbers as released, not investment advice.
Frequently Asked Questions
What were Berkshire Hathaway’s third-quarter 2026 operating earnings?
Operating earnings were 12.705 billion dollars, down 5.8 percent from 13.485 billion dollars a year earlier. Operating earnings per Class A share were 8,907 dollars, above the average analyst forecast of 8,821.84 dollars from four analysts surveyed by FactSet.
Why did net earnings fall more than operating earnings?
Net earnings fell to 22.112 billion dollars from 30.796 billion dollars a year earlier. The main reason was investment gains, which shrank to 9.407 billion dollars from 17.311 billion dollars. Operating earnings strip out those gains and losses, while net earnings include them.
How much cash does Berkshire Hathaway hold now?
Cash, cash equivalents and short-term securities reached 377.4 billion dollars at the end of September 2026, a record high, up from 365.5 billion dollars at the end of June 2026, even after about 9.6 billion dollars of buybacks in the quarter.
How much stock did Berkshire Hathaway buy back in the quarter?
About 9.6 billion dollars in the third quarter, bringing the nine-month total to about 14.4 billion dollars. On September 30, 2026, there were 1,418,900 Class A equivalent shares outstanding.
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Final Thoughts
Berkshire Hathaway’s third quarter of 2026 was a mixed report. Profit fell, with operating earnings down 5.8 percent and net earnings down by a larger amount as investment gains shrank. Insurance was the weak spot, with underwriting earnings down about 43 percent and investment income down 14.1 percent after tax. At the same time, BNSF railroad and the other big operating units grew, the company bought back about 9.6 billion dollars of its own stock, and cash reached a record 377.4 billion dollars.
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