Berkshire Hathaway’s first full quarter without Warren Buffett at the helm as CEO closed with solid operating performance, a record cash pile, and notable portfolio reshaping. Greg Abel, who assumed the CEO role on January 1, 2026, oversaw results that demonstrated continuity in the conglomerate’s core businesses while signaling a more active approach to trimming the equity holdings.
For the quarter ended March 31, 2026, Berkshire posted operating earnings of $11.35 billion, representing an approximately 18% increase from $9.64 billion in the year-ago period. The figure fell slightly short of Wall Street expectations around $11.56 billion. Stronger insurance underwriting results—benefiting from an easier comparison after heavy catastrophe losses in 2025—along with gains at BNSF Railway and other operating segments, drove the improvement.
Net earnings attributable to shareholders rose sharply to $10.1 billion, or roughly $7,027 per Class A share, more than double the $4.6 billion reported in the first quarter of 2025. This jump was aided by reduced investment losses compared with the prior year.
Cash Hoard Hits Record, Buybacks Resume
Berkshire’s cash and short-term investments climbed to a record approximately $397 billion, up from about $373 billion at the end of 2025. The increase reflects continued net sales of stocks and restrained capital deployment. The company also resumed share repurchases, buying back roughly $234–235 million worth of its stock—the first buybacks in nearly two years.
Insurance and Operating Segments Perform Well
Insurance underwriting delivered $1.72 billion in after-tax profit, up from $1.34 billion a year earlier, supported by the absence of major catastrophes. BNSF Railway saw earnings rise about 13%, while Berkshire Hathaway Energy posted a modest gain. Manufacturing, service, and retailing operations showed mixed but overall positive results. Management noted some pressure on consumer and business spending amid prevailing economic conditions.
Major Portfolio Cleanup Continues
The equity portfolio, now managed with greater day-to-day involvement from Abel’s team (with Buffett remaining as chairman and offering input), underwent significant changes. Berkshire remained a net seller of stocks for the 14th consecutive quarter, reducing its holdings from around 40 to roughly 26–29 names.
Key moves included:
- A large increase in Alphabet (Google) shares, which significantly boosted its weighting.
- New positions in Delta Air Lines (approximately 39.8 million shares worth about $2.65 billion) and Macy’s.
- Additions to existing holdings such as Chubb and The New York Times.
- Complete exits from Amazon, UnitedHealth, Visa, Mastercard, Domino’s, and several smaller names.
- A roughly 35% reduction in the Chevron position.
The portfolio, valued at approximately $263 billion at quarter-end, became more concentrated, with the top five holdings—Apple, American Express, Coca-Cola, Bank of America, and Chevron—accounting for about 68% of the total. Apple alone represented roughly 22%.
Overall, Berkshire purchased about $16 billion in equities and sold roughly $24 billion during the period.
Outlook Remains Focused on Long-Term Discipline
The results and accompanying annual shareholder meeting highlighted stability rather than abrupt change. Abel led portions of the meeting, earning praise for a smooth transition, while Buffett continued to play an active chairman role. The growing cash position positions Berkshire for potential large acquisitions or opportunistic investments when valuations become attractive.
As always, Berkshire’s long-term philosophy centers on owning high-quality businesses, maintaining a fortress balance sheet, and exercising capital discipline. While the first quarter under new leadership showed some portfolio streamlining, the core approach that defined the company under Buffett appears intact.
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