Berkshire Buys Back $9.6 Billion of Stock in Q3 as Operating Profit Falls 5.8%

Berkshire Hathaway reported third-quarter results on Saturday, November 7, with operating earnings of $12.705 billion, down 5.8% from a year earlier, while buying back about $9.6 billion of its own shares — the most in any quarter this year — plus about $2 billion more in the first four weeks of October. It is the third quarterly report under chief executive Greg Abel, who took over on January 1, 2026.

Insurance underwriting profit down 43% drags on results

Insurance was the biggest drag on the quarter: insurance earnings fell 26% and underwriting profit dropped 43% to $1.35 billion. Auto insurer GEICO's pre-tax profit fell 45% as its loss ratio — the share of premiums paid out in claims — rose to 76.6% from 71.5% a year earlier, with higher accident losses, more advertising spending and price cuts all weighing on results. Berkshire also cited an unfavourable currency swing on its non-dollar debt; Barron's estimated that excluding losses on yen-related borrowings, operating earnings fell by less than 1%.

Buybacks accelerate: $9.6 billion in Q3, more than the whole first half

The pace of repurchases picked up sharply: about $9.6 billion in the third quarter, more than double the $4.8 billion spent in the first half of the year, taking the nine-month total to about $14.4 billion. Reuters and Barron's reported Berkshire bought about $2 billion more in the first four weeks of October — a pace that would make the fourth quarter the largest buyback period in the company's history. Berkshire's repurchase policy is entirely discretionary, depending on management's judgement of intrinsic value, market prices and liquidity, with no set minimum or maximum.

Railroad and energy do better; nine-month operating profit up 8%

The non-insurance businesses did better: railroad BNSF's after-tax earnings rose 19.3%, to $1.729 billion from $1.449 billion, and Berkshire Hathaway Energy increased to $1.612 billion from $1.489 billion. Over the first nine months, operating earnings totalled $37.034 billion, up 8.0%. Quarterly revenue rose 11% to $105.65 billion, the second straight quarter of double-digit growth. Insurance float stood at about $178.5 billion, up about $2.1 billion since year-end.

Net profit down 28%, reflecting portfolio swings

Net earnings, which include changes in the value of stocks Berkshire still owns, fell 28.2% to $22.112 billion from $30.796 billion a year earlier, or $15,502 per Class A share. Berkshire has long stressed that the headline figure is heavily affected by market swings in shares it has not sold and does not reflect how the businesses are performing; investors should watch operating earnings. On that basis, operating earnings came to about $8,954 per Class A share (Reuters), above the average analyst forecast of $8,822 (FactSet).

(Sources: Reuters; Bloomberg; Associated Press; Berkshire Hathaway third-quarter results and Form 10-Q.)