Berkshire Hathaway (BRK.B) kicked off 2026 with a solid, if slightly imperfect, first-quarter report that highlighted the strength of its operating businesses while once again underscoring a familiar dilemma: the company is generating more cash than it can easily deploy. The results mark the first full quarter under CEO Greg Abel, and while the transition from Warren Buffett to Abel has been orderly, investors were focused squarely on whether the underlying engine of the business remains intact. On that front, the answer is largely yes—though expectations were high heading into the print.
Operating earnings , which Buffett has long emphasized as the most meaningful measure of Berkshire’s performance, came in at $11.35 billion, up roughly 18% year-over-year. That figure modestly exceeded most estimates near $11.1 billion, though it fell short of higher whisper numbers. The reason Buffett prioritizes operating earnings is straightforward: accounting rules force Berkshire to include unrealized gains and losses from its massive investment portfolio in net income, which can introduce significant volatility that has little to do with the company’s underlying business performance. By stripping that noise out, operating earnings provide a cleaner view of how Berkshire’s core businesses are performing—and this quarter showed steady, broad-based strength.
Net income more than doubled year-over-year to approximately $10.1 billion, benefiting from a sharp reduction in investment losses compared to the prior year. However, as Buffett has repeatedly noted, this figure is less useful analytically given the swings driven by market movements. The real story was in the operating segments, where multiple divisions contributed to the growth.
Insurance once again led the way, with underwriting earnings rising to roughly $1.7 billion, driven largely by the absence of major catastrophe losses—a stark contrast to the prior year when events weighed heavily on results. That said, the picture wasn’t entirely clean. GEICO, one of Berkshire’s flagship insurance businesses, saw earnings decline meaningfully, suggesting competitive or pricing pressures remain in parts of the auto insurance market. Meanwhile, insurance investment income declined modestly due to lower interest rates, partially offsetting underwriting gains.
The railroad business, BNSF Railway, delivered a strong quarter, with earnings rising more than 13% year-over-year. Revenue growth was driven by a combination of higher volumes and improved pricing, with particular strength in agricultural and energy shipments. Gains in operational efficiency also supported margins. This segment continues to serve as a key barometer for the broader U.S. economy, and the results suggest underlying freight demand remains relatively resilient, despite pockets of weakness tied to housing-related shipments.
Berkshire Hathaway Energy posted more modest growth, with earnings up around 1–2% year-over-year. Strength in natural gas pipeline operations and tax credits helped offset weaker performance in U.S. utilities. Meanwhile, the manufacturing, service, and retailing segment delivered mid-single-digit growth, with gains in industrial and service businesses partially offset by softness in retail. Taken together, the results reflect a diversified earnings base that continues to provide stability, even as individual segments experience varying demand dynamics.
On the investment side, Berkshire remained a net seller of equities for the 14th consecutive quarter, selling approximately $24.1 billion of stock while purchasing about $15.9 billion. The company’s largest holdings—including Apple, American Express, Bank of America, Coca-Cola, and Chevron—remained largely unchanged at the top of the portfolio. While Berkshire has not yet disclosed detailed position-level changes for the quarter, the continued net selling suggests a cautious stance toward equity valuations, consistent with Buffett’s commentary in recent years.
The most eye-catching figure, however, was Berkshire’s cash position, which surged to yet another record—approaching $397 billion depending on the measure used. This growing war chest has become a defining feature of the Berkshire story. While it provides unmatched financial flexibility and downside protection, it also raises increasingly urgent questions about capital allocation. With fewer large-scale acquisition opportunities available at attractive valuations, the company has struggled to deploy capital in a way that meaningfully moves the needle.
That dynamic likely explains the resumption of share repurchases during the quarter. Berkshire bought back approximately $234 million of its own stock, ending a six-quarter pause in buyback activity. While modest relative to its overall size, the move signals that management sees value in the shares at current levels, particularly given the limited availability of alternative uses for capital. Greg Abel himself reinforced that confidence by personally purchasing roughly $15 million in Berkshire stock, with plans to continue doing so annually.
Ultimately, the quarter reinforced a familiar narrative. Berkshire’s operating businesses are performing well, with insurance, rail, and industrial segments all contributing to earnings growth. The company continues to generate enormous amounts of cash, but the challenge of deploying that capital efficiently remains unresolved. Investors will be listening closely at the annual meeting for any indication of how Abel and his team plan to address that issue.
If there is a takeaway from the first quarter, it is that Berkshire remains a remarkably steady operator in an uncertain world. The transition from Buffett to Abel appears smooth, the underlying businesses are healthy, and the balance sheet is stronger than ever. The only problem—if it can be called that—is figuring out what to do with nearly $400 billion in cash. That’s a high-class problem, but it’s one that increasingly defines the investment debate around Berkshire Hathaway.