Berkshire Hathaway (BRK.B) Stock: Q1 Earnings Show Record Cash Pile Under New CEO Greg Abel

TLDR

• Berkshire reported Q1 operating earnings of $11.35B, up ~18% year-over-year, but missed estimates of $11.56B
• Cash pile hit a record $397.4B, up from $373B at end of 2025
• Net income more than doubled to $10.1B vs. $4.6B in Q1 2025
• Insurance underwriting earnings rose 28% to $1.7B, though Geico saw a 34% earnings drop
• This was Greg Abel’s first quarterly report since taking over as CEO from Warren Buffett in January 2026

Berkshire Hathaway posted Q1 2026 operating earnings of $11.35 billion, up nearly 18% from the same period last year. The results fell just short of analyst estimates of $11.56 billion, per FactSet data.

Net income came in at roughly $10.1 billion for the quarter — more than double the $4.6 billion reported in Q1 2025.

BRK.B closed Friday at around $487, not far from the average repurchase price of $486.92 the company paid during the quarter.

Berkshire Hathaway Inc., BRK-B

The headline number grabbing attention is the cash pile. Berkshire’s cash, cash equivalents, and short-term securities hit a record $397.4 billion as of March 31, up from $373 billion at year-end 2025.

That’s a lot of dry powder sitting on the sidelines.

Insurance Drives the Rebound

The insurance underwriting business was the main driver of the earnings rebound. It generated $1.7 billion, up 29% year-over-year, largely because there were no major catastrophe events during the quarter.

However, not all of insurance was rosy. Geico, the flagship underwriting unit, saw earnings drop 34%. Insurance investment income also dipped 7% to $2.7 billion, hurt by lower interest rates cutting into interest income.

BNSF, Berkshire’s railroad, contributed $1.4 billion — up 13% year-over-year on higher revenues and operational efficiencies.

Manufacturing, service, and retail operations added $3.2 billion, a 5% year-over-year gain. Berkshire Hathaway Energy came in at $1.1 billion, up 2%, helped by natural gas pipeline earnings and federal tax credits.

Abel’s First Quarter in Charge

This was Greg Abel’s first quarterly report as CEO. He stepped into the role at the start of 2026, succeeding Warren Buffett, and penned the annual shareholder letter in February.

Abel took the stage Saturday at Berkshire’s annual meeting in Omaha — the event often called “Woodstock for Capitalists.”

Buffett, now 95, had become something of a cultural institution at the event, drawing huge crowds and lending his name to brands like Fruit of the Loom and Squishmallow.

During Q1, Berkshire repurchased $234.2 million worth of stock — its first buyback activity since May 2024. That included 33 Class A shares at an average price of $729,701 and 431,462 Class B shares at roughly $486.92 each.

The conglomerate also sold a net $8.1 billion in equity securities during the quarter. Berkshire’s five largest equity holdings — Apple, American Express, Bank of America, Coca-Cola, and Chevron — made up 61% of its total equity portfolio at March 31, down from 65% at year-end 2025.

Berkshire’s Q1 2025 operating earnings had been $9.6 billion, and Q4 2025 had seen a sharp 30% year-over-year drop to $10.2 billion, so the Q1 2026 rebound reflects a meaningful recovery driven by the insurance segment.

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