Berkshire Hathaway reported that it accelerated its share repurchases during the third quarter as both operating and overall profits experienced a decline.
Share Repurchases and Operating Profits
The conglomerate, led by Greg Abel, repurchased $9.6 billion worth of its own stock during the quarter. This figure represents more than double the $4.5 billion bought back in the second quarter, bringing the company’s total share repurchases for 2026 to approximately $14.4 billion.
The increase in buybacks coincided with a year-over-year decline in Berkshire’s operating earnings, which are generated by its wholly-owned businesses, driven by a pullback in insurance profits.
Operating profits reached $12.705 billion, marking a 5.8% decrease compared to $13.485 billion during the same period a year earlier. Insurance underwriting profits dropped 43% year over year to $1.352 billion, and insurance investment income fell 14% to $2.734 billion. Meanwhile, earnings in Berkshire’s railroad, energy, and manufacturing divisions all increased compared to the previous year.
Overall Earnings and Market Performance
The company’s overall earnings, which account for its large stock market portfolio, fell 28% in the third quarter to $22.112 billion, down from $30.796 billion a year prior. Investment gains dropped by nearly 50% to $9.407 billion.
Despite the drop in earnings, Berkshire stock has recently outperformed the broader market amid a rotation away from technology stocks. Class A shares have risen more than 12% over the past month, during which the S&P 500 fell 5.5%. For the year to date, Berkshire has gained 13%, compared to a 7.8% increase for the broad market index.
Berkshire’s five largest equity holdings remained unchanged during the third quarter, consisting of Alphabet, American Express, Apple, Bank of America, and Coca-Cola.
