Berkshire Hathaway Q2 2026 Profit More Than Doubles to $25.7 Billion as Cash Reserves Hit Record $359.2 Billion
Key Takeaways
- •Berkshire Hathaway's second-quarter 2026 net earnings reached $25.67 billion, primarily driven by $16.08 billion in unrealized gains from its public equity portfolio.
- •Operating earnings, which exclude investment fluctuations, increased by 16.3% to $12.9 billion for the quarter.
- •The company accelerated its stock buybacks in the second quarter, repurchasing $4.53 billion worth of shares.
- •Berkshire's cash reserves hit a record high of $359.2 billion at the end of June, signaling substantial capacity for future large-scale acquisitions.
- •For the first six months of 2026, net earnings surged 110.7% to $35.8 billion, while operating income grew 16.9% to $24.3 billion.
Berkshire Hathaway reported a sharp increase in second-quarter profit on Saturday, August 8, 2026, with net earnings more than doubling to $25.67 billion, up from $12.37 billion in the same period a year earlier — a 107.5% year-over-year increase.
Net earnings per average equivalent Class B share surged 107.8% to $11.91. On a Class A basis, the company earned $17,868 per share, compared with $8,601 in the prior-year quarter.
The headline net income figure was heavily boosted by $16.08 billion in investment gains, driven largely by unrealized appreciation across Berkshire's public equity portfolio. Major holdings including Apple, Alphabet, American Express, Bank of America, and Coca-Cola all contributed to those paper gains. Under accounting rules in effect since 2018, Berkshire must report fluctuations in the value of its equity holdings through earnings each quarter, meaning reported net income can swing significantly based on market conditions.
$BRK.B (Berkshire Hathaway) #earnings are out: pic.twitter.com/gDemMVDGuB — The Earnings Correspondent (@earnings_guy) August 8, 2026
Operating earnings — the metric long championed by Warren Buffett as a cleaner measure of underlying business performance because it excludes investment gains and losses — rose 16.3% to $12.9 billion for the quarter.
Buybacks Accelerate
Berkshire repurchased $4.53 billion of its own stock during Q2, a notable increase from the slower pace observed in Q1. The buybacks brought the total for the first half of 2026 to $4.76 billion.
Under Berkshire's repurchase policy, share buybacks occur only when management believes the stock is trading below its intrinsic value and cash reserves remain above a $30 billion floor.
The acceleration in repurchases came even as Berkshire's cash pile reached a record $359.2 billion at the end of June, suggesting CEO Greg Abel views the current share price as an opportunity to return value to investors. Abel, who oversees Berkshire's non-insurance businesses, was identified as Buffett's designated successor in 2021. The record cash position provides substantial firepower for large acquisitions, though Berkshire has not completed a major deal in recent quarters.
First-Half 2026 Results
For the first six months of 2026, net earnings surged 110.7% to $35.8 billion. Operating income advanced 16.9% to $24.3 billion.
Net earnings per average equivalent Class B share for the first half reached $7.87, up 110.8% from the same period in 2025.
Berkshire's insurance float — the net liabilities assumed under insurance contracts — stood at approximately $177.5 billion as of June 30, an increase of roughly $1.1 billion from year-end 2025. This float effectively provides Berkshire with low-cost capital that can be deployed into investments and acquisitions as long as insurance underwriting remains profitable.
There were 1,431,693 Class A equivalent shares outstanding as of June 30, 2026, reflecting the impact of the buyback program.
