Key takeaways
- Berkshire repurchases $9.6 billion in shares during third quarter
- Net income falls 28% as insurance earnings weaken
- Greg Abel accelerates buybacks despite shrinking quarterly profits
Berkshire Hathaway repurchased $9.6 billion of its own shares during the third quarter of 2026, sharply accelerating buybacks even as net income fell 28% and its Geico insurance business suffered a significant earnings decline.
According to Berkshire's November 7 earnings release, quarterly net income declined to $22.11 billion from $30.80 billion a year earlier. Operating earnings, which exclude volatile investment gains and losses, slipped 5.8% to $12.71 billion.
The results mark another significant capital-allocation decision under CEO Greg Abel, who succeeded Warren Buffett in January and has become more willing to deploy Berkshire's substantial cash reserves.
Greg Abel Accelerates Buybacks as Berkshire Earnings Decline
Berkshire's $9.6 billion third-quarter repurchase program was approximately twice the $4.8 billion spent during the first six months of 2026.
The company bought back $14.4 billion of shares through September and reportedly purchased another $2 billion during October, signaling a notable change in capital deployment.
The acceleration follows Buffett's leadership transition, which left Abel responsible for overseeing Berkshire's enormous investment portfolio and operating businesses.
Berkshire ended September with approximately $356.9 billion in cash and equivalents under the measure covering its insurance and other businesses, compared with roughly $380.2 billion in March.
Despite the buybacks, the conglomerate retained substantial financial flexibility for acquisitions, investment opportunities and potential economic disruptions.
The shift comes after Berkshire ended a prolonged period of equity selling, expanding its Alphabet investment earlier this year.
Geico Profits Drop 45% Despite Stronger Railroad Earnings
Berkshire's insurance operations were the primary source of weakness.
Insurance underwriting earnings declined 43% to $1.35 billion from $2.37 billion a year earlier. Geico's underwriting profit fell approximately 45% to $982 million as claims costs and advertising expenses increased.
Insurance investment income also declined 14% to $2.73 billion, adding pressure to the conglomerate's operating results.
However, several noninsurance businesses performed substantially better.
BNSF railroad earnings increased 19% to $1.73 billion, while Berkshire Hathaway Energy's profit rose 8% to $1.61 billion. Manufacturing, service and retailing earnings climbed approximately 12% to $4.04 billion.
These gains helped offset insurance weakness, illustrating the advantages of Berkshire's diversified business structure.
Berkshire's Buybacks Signal Confidence Despite $8.7 Billion Profit Decline
The 28% decline in reported net income partly reflects investment accounting rather than deterioration across every operating business.
Investment gains fell to $9.41 billion from $17.31 billion a year earlier. Berkshire cautions that quarterly investment gains, including unrealized stock-market movements, can distort reported profitability.
The company has continued diversifying its investments, including an additional $330 million commitment to Italian software company Bending Spoons.
