Berkshire Hathaway Q2 earnings: Profit rises 16% to $12.98 billion as buybacks accelerate

American multinational conglomerate Berkshire Hathaway reported stronger-than-expected second-quarter results, with operating profit, revenue and net income rising, while its massive cash pile fell as the company stepped up stock purchases and buybacks.Operating profit rose 16 per cent year-on-year to $12.98 billion, beating analyst expectations, reported Reuters. Revenue increased 10 per cent to $101.81 billion, while net income more than doubled to $25.67 billion. The net income figure includes unrealised gains and losses on Berkshire’s investments.The improvement came despite weaker results from Geico, Berkshire’s auto insurance business. Higher profits at BNSF Railway and businesses including NetJets and TTI helped offset the insurer’s decline.Berkshire also repurchased $4.5 billion of its own shares between April and June and bought another $3.3 billion worth in July, accelerating a buyback programme that had resumed in March after a nearly two-year pause.The company also bought nearly $20 billion more stocks than it sold during the quarter, ending 14 consecutive quarters as a net seller.One of its biggest purchases was an additional $10 billion investment in Alphabet, the parent company 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 figure also reflects the $6.8 billion Berkshire spent in July to acquire homebuilder Taylor Morrison.The pace of buybacks marks a significant change from the period when Warren Buffett struggled to find attractive opportunities for Berkshire’s cash. The company repurchased a record $27 billion of its own shares in 2021.Meanwhile, Geico’s pre-tax underwriting profit fell 45 per cent as accident claims increased and the company spent more on advertising to attract customers.Overall profit from Berkshire’s insurance and reinsurance businesses fell 11%.Analyst Cathy Seifert described Geico’s results as “absolutely abysmal” and said they raised concerns about the insurer’s performance compared with rivals such as Allstate and Progressive.On the other hand, BNSF Railway’s profit rose 6 per cent to $1.56 billion as the railroad transported more consumer, agricultural and energy products and benefited from higher fuel charges.Berkshire Hathaway Energy reported a 27 per cent increase in profit to $891 million, helped by stronger utility margins and tax credits.

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 have been watching how Abel approaches Berkshire’s enormous capital reserves and investment decisions after Buffett’s long tenure.Berkshire’s policy allows it to buy back shares when management believes they are trading below their intrinsic value. Abel determines that value conservatively after consulting Buffett, who remains the company’s chairman.Despite the 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.Berkshire also warned that considerable uncertainty remains around the broader economic and geopolitical environment, including tariffs and wars, with consumer businesses such as Fruit of the Loom and Forest River reflecting changes in consumer confidence.