A decentralized holding company whose businesses span insurance (GEICO), freight rail (BNSF Railway), utilities, manufacturing, and services. It began as a New England textile maker, formed by the 1955 merger of Berkshire Fine Spinning Associates and Hathaway Manufacturing, named for Berkshire County and founder Horatio Hathaway. Warren Buffett took control in 1965 after management lowballed a share buyback offer, buying the company out of spite.
Investment gains and broad operating growth lifted Q2 net earnings 107.5% to $25.7B, while GEICO's loss ratio rose to 78.7%.
Berkshire's operating businesses delivered broad growth, but the quarter's defining number came from the investment portfolio. rose 10.0% to $101.8 billion and more than doubled to $25.7 billion, driven by a $7.7 billion increase in after-tax investment gains. The cash pile shrank to $359.2 billion as the company put $4.8 billion into share repurchases in the first half of the year.
Key takeaways
rose 107.5% to $25.7 billion, as after-tax investment gains of $12.7 billion replaced $5.0 billion in gains a year ago, a $7.7 billion swing.
Insurance underwriting after-tax earnings fell 13.1% to $1.7 billion, as GEICO's rose 4.8 points to 78.7% on higher claims frequency and severity, while reinsurance and BH Primary results improved.
Manufacturing, service, and retailing after-tax earnings grew 24.1% to $4.5 billion, led by industrial products including Precision Castparts and IMC, and by service businesses TTI and aviation services.
Section summaries
Management's Discussion and Analysis
Berkshire Q2 2026 net earnings more than doubled to $25.7B, driven by $12.7B in investment gains and broad operating earnings growth.
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attributable to Berkshire shareholders surged to $25.7B in Q2 2026 from $12.4B in Q2 2025, primarily due to a $7.7B increase in after-tax investment gains.
BNSF railroad after-tax earnings rose 6.3% to $1.6 billion on a 6.5% increase in volumes and improved operating efficiencies, partly offset by a 68% rise in fuel costs.
Berkshire Hathaway Energy after-tax earnings increased 26.9% to $891 million, reflecting higher U.S. utility margins from customer volume growth and increased natural gas pipeline revenues.
Berkshire repurchased $4.8 billion of its stock in the first half of 2026 and held $359.2 billion in cash, equivalents, and U.S. Treasury Bills at quarter-end, down from $373.5 billion at the end of Q1.
What changed
The $4.8 billion in share repurchases in the first half of 2026 marks a clear shift from 2025, when the company bought back no shares, and addresses the question flagged repeatedly in prior quarters about whether management would deploy the growing cash position.
GEICO's rose to 78.7%, up from 73.9% in Q1 2026 and 73.9% in Q2 2025, confirming that the higher claims frequencies and severities flagged last quarter are persisting rather than reversing.
The OxyChem acquisition, completed in Q2 for $9.4 billion following its announcement in Q1, represents a second consecutive quarter of capital deployment after a year of accumulation, alongside the resumed buybacks.
After-tax investment gains swung from $5.0 billion in Q2 2025 to $12.7 billion in Q2 2026, a $7.7 billion increase that reverses the pattern of declining investment gains that weighed on results through 2025.
What to watch
Whether GEICO's , which rose to 78.7% on higher claims frequency and severity, stabilizes or continues to climb, pressuring the one consistently profitable underwriting unit.
Whether the $4.8 billion in share repurchases in the first half of 2026 continues at a similar pace in the second half, signaling a sustained capital deployment shift under CEO Gregory Abel.
The direction of equity markets in Q3 and the resulting mark-to-market impact on the investment portfolio, given the $7.7 billion swing in investment gains this quarter.
Whether the 24.1% increase in manufacturing, service, and retailing earnings, led by industrial products and service businesses, continues into Q3 or reflects a one-time demand increase.
Insurance underwriting earnings fell 13.1% to $1.7B as GEICO's rose 4.8 points on higher claims frequency and severity, while reinsurance and BH Primary improved.
BNSF railroad earnings rose 6.3% to $1.6B on 6.5% higher volumes and improved operating efficiencies, partly offset by a 68% surge in fuel costs.
Manufacturing, service and retailing earnings grew 24.1% to $4.5B, led by industrial products (PCC, IMC) and service businesses (TTI, aviation services).
BHE earnings increased 26.9% to $891M, reflecting higher U.S. utility margins from customer volume growth and increased natural gas pipeline revenues.
Berkshire repurchased $4.8B of its stock in H1 2026 and held $359.2B in cash, equivalents, and U.S. Treasury Bills, while completing the $9.4B OxyChem acquisition.
Quantitative and Qualitative Disclosures About Market Risk
Reference is made to Berkshire’s Annual Report on Form 10-K for the year ended December 31, 2025 and the “Market Risk Disclosures” included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” As of June 30, 2026, there were no material cha…
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Reference is made to Berkshire’s Annual Report on Form 10-K for the year ended December 31, 2025 and the “Market Risk Disclosures” included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” As of June 30, 2026, there were no material changes in the market risks described in Berkshire’s Annual Report.
Berkshire and its subsidiaries are parties in a variety of legal actions that routinely arise out of the normal course of business, including legal actions seeking to establish liability directly through insurance contracts or indirectly through reinsurance contracts issued by B…
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Berkshire and its subsidiaries are parties in a variety of legal actions that routinely arise out of the normal course of business, including legal actions seeking to establish liability directly through insurance contracts or indirectly through reinsurance contracts issued by Berkshire subsidiaries. Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal and routine litigation will have a material effect on our financial condition or results of operations.
Reference is made to Note 22 to the accompanying Consolidated Financial Statements for information concerning certain litigation involving Berkshire subsidiaries. Berkshire and certain of its subsidiaries are also involved in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines and penalties. We currently believe that any liability that may arise from other pending legal actions will not have a material effect on our consolidated financial condition or results of operations.
Our significant business risks are described in Item 1A to Form 10-K for the year ended December 31, 2025, to which reference is made herein. The risks and uncertainties we describe are not the only ones facing us. Additional risks and uncertainties not presently known to us or…
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Our significant business risks are described in Item 1A to Form 10-K for the year ended December 31, 2025, to which reference is made herein. The risks and uncertainties we describe are not the only ones facing us. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business or operations. Any adverse effect on our business, financial condition or operating results could result in a decline in the value of our securities and the loss of all or part of your investment.