Berkshire Hathaway accelerates share buybacks as profits decline

Berkshire Hathaway reported a significant increase in share repurchases during the third quarter of 2026, even as the company experienced a decline in both operating profit and net income. The conglomerate repurchased $9.6 billion of its own stock between July 1 and Sept. 30, more than doubling the $4.5 billion spent on buybacks in the second quarter.

The company's quarterly operating profit fell to approximately $12.71 billion, a decrease of nearly 6% compared to the $13.485 billion reported during the same period in 2025. Net income saw a sharper decline, dropping 28% to $22.112 billion from $30.796 billion a year earlier.

Financial results were impacted by the performance of the insurance sector, where underwriting profit fell 43% and investment income dropped 14%. GEICO specifically recorded a 45% pre-tax decline in underwriting profit, a result attributed to higher advertising expenditures and an increase in accident losses.

Despite the drop in earnings, Berkshire Hathaway maintained a substantial cash position, ending the quarter with between $356.9 billion and $377.4 billion in cash and equivalents. The firm continued its repurchase activity into the fourth quarter, buying back an additional $2 billion in stock during the first four weeks of October.

The earnings announcement on Nov. 7, 2026, follows a period of leadership transition at the firm. Greg Abel assumed the role of CEO at the start of the year, while Warren Buffett stepped down as Chairman in September 2026. Berkshire Hathaway's Class A shares rose more than 12% in the month leading up to the report.