Berkshire Hathaway reported stronger-than-expected second-quarter results, with operating profit rising 16% year-on-year to $12.98 billion, revenue up 10% to $101.81 billion, and net income more than doubling to $25.67 billion, according to Reuters as reported by The Times of India. The conglomerate also accelerated share repurchases, buying back $4.5 billion of its own stock between April and June plus $3.3 billion in July.
Buybacks accelerate as cash pile shrinks
The pace of repurchases marks a clear shift for Berkshire, whose buyback programme had resumed in March after a nearly two-year pause, reported The Times of India. During the second quarter, the company bought nearly $20 billion more stocks than it sold, ending 14 consecutive quarters as a net seller. Its largest single purchase was an additional $10 billion investment in Alphabet, parent of Google and YouTube. Berkshire ended June with $364.7 billion in cash and cash equivalents, down from a record $380.2 billion three months earlier. The decline also reflects the $6.8 billion spent in July to acquire homebuilder Taylor Morrison. For context, Berkshire repurchased a record $27 billion of its own shares in 2021.
Segment results: Geico sags, BNSF and Energy lift
The overall improvement came despite weaker results at Geico, Berkshire's auto insurance business. Geico's pre-tax underwriting profit fell 45% as accident claims increased and advertising spending rose. CFRA analyst Cathy Seifert described Geico's results as "absolutely abysmal" and raised concerns about its performance against rivals Allstate and Progressive. Overall profit from Berkshire's insurance and reinsurance businesses fell 11%.
CFRA analyst Cathy Seifert described Geico's results as "absolutely abysmal."
Offsetting that weakness were gains elsewhere:
- BNSF Railway profit rose 6% to $1.56 billion, as the railroad moved more consumer, agricultural and energy products and collected higher fuel charges.
- Berkshire Hathaway Energy profit increased 27% to $891 million, helped by stronger utility margins and tax credits.
- Higher profits at NetJets and TTI also helped offset the insurer's decline.
| Metric | Q2 2026 | Change |
|---|---|---|
| Operating profit | $12.98 billion | +16% YoY |
| Revenue | $101.81 billion | +10% YoY |
| Net income | $25.67 billion | more than doubled |
| Cash and equivalents (June 30) | $364.7 billion | down from $380.2 billion |
| Buybacks (April–June) | $4.5 billion | — |
| Buybacks (July) | $3.3 billion | — |
| BNSF Railway profit | $1.56 billion | +6% |
| Berkshire Hathaway Energy profit | $891 million | +27% |
| Geico pre-tax underwriting profit | — | -45% |
| Insurance and reinsurance profit | — | -11% |
Greg Abel's second quarter as CEO
The results mark the second quarter since Greg Abel succeeded Warren Buffett as Berkshire's chief executive. Investors are watching how Abel approaches Berkshire's enormous capital reserves and investment decisions, according to The Times of India. Berkshire's policy allows it to buy back shares when management believes they are trading below intrinsic value; Abel determines that value conservatively after consulting Buffett, who remains chairman. Despite stronger quarterly results, Berkshire's Class A shares have underperformed the S&P 500 since Abel's succession was announced in May 2025. The shares have gained 3% in 2026, compared with a 13% rise in the S&P 500.
Economic uncertainty and consumer caution
Berkshire warned that considerable uncertainty remains around the broader economic and geopolitical environment, including tariffs and wars, reported The Times of India. Consumer businesses such as Fruit of the Loom and Forest River are reflecting changes in consumer confidence, the company said.
The combination of accelerated buybacks, a shrinking cash pile and caution on consumer spending gives finance executives a clear read-through: Berkshire is deploying capital where it sees value, while flagging that tariffs and geopolitical shocks remain live risks for trade-sensitive businesses.
Sources:
