Berkshire Hathaway releases its first-quarter 2026 earnings report on Saturday, May 2, at approximately 8:00 a.m. ET, coinciding with the company’s annual shareholders meeting in Omaha — the first under Greg Abel’s leadership as CEO following Warren Buffett’s transition to chairman emeritus on January 1, 2026.
What Analysts Expect
| Metric | Q1 2026 Est. | Q4 2025 | YoY Change |
|---|---|---|---|
| Revenue | $95.1B | $93.2B | +6% |
| EPS | $4.82 | $5.23 | -7.8% |
| Operating Earnings | ~$10.5B | $14.5B | TBD |
The expected EPS decline reflects a tougher comparison versus Q1 2025, which benefited from unusually strong insurance underwriting and investment gains. Analysts expect operating earnings to normalize while revenue growth remains steady across Berkshire’s diversified portfolio of businesses.
Key Items to Watch
1. Share Buybacks Resume
Buffett halted buybacks in mid-2025, citing elevated valuations. Buybacks resumed in March 2026, making the repurchase volume the first data point investors want to see. Resumed buybacks at current prices (~$480/share for B-shares) signal that Abel and Buffett view the stock as reasonably valued again.
2. Insurance Underwriting Margins
GEICO and Berkshire Hathaway Reinsurance Group are the company’s profit engines. Q4 2025 underwriting profit fell 54% on a tougher pricing environment, raising concerns about whether the softening was temporary or structural.
Q1 results will reveal whether the underwriting reset continues or if pricing discipline has returned. Natural catastrophe losses in Q1 2026 were moderate, which should help the segment.
3. Cash Pile
Berkshire ended 2025 with approximately $334 billion in cash and short-term Treasury holdings — the largest cash position in the company’s history. Buffett told shareholders in February that the company was “waiting for the right deployment opportunity.”
Investors will scrutinize whether the cash pile has grown further or if Abel has begun deploying capital into acquisitions or equity positions.
4. Energy and Utilities
Berkshire Hathaway Energy faces ongoing wildfire liability exposure in Oregon and regulatory challenges across its utility portfolio. The segment has underperformed relative to the broader Berkshire portfolio, and any write-downs or reserve increases will be closely watched.
The Abel Era Begins
Greg Abel, 62, took the CEO title on January 1, 2026, after managing Berkshire’s non-insurance businesses for several years. His leadership style differs from Buffett’s — Abel is described as more operationally focused, with a willingness to restructure underperforming units rather than holding indefinitely.
Key early moves under Abel:
- Resumed buybacks in March (first in 9 months)
- Expanded capital expenditure at BNSF Railway
- Announced a strategic review of Berkshire’s smaller manufacturing businesses
- Maintained Buffett’s decentralized management structure
Buffett, 95, remains chairman emeritus and continues to make investment decisions for the equity portfolio. His annual shareholder letter, released alongside Q1 earnings, traditionally offers commentary on market conditions, the economy, and investment philosophy.
The Shareholder Meeting
The annual meeting draws approximately 40,000 attendees to Omaha. This year’s Q&A session will be the first where Abel fields the majority of business questions, with Buffett expected to participate in a reduced capacity.
Investor attention will focus on:
- Abel’s capital allocation framework (how does it differ from Buffett’s?)
- Commentary on the current market valuation (S&P 500 at all-time highs)
- Views on AI investment opportunities
- Insurance market outlook
- Any commentary on the US-Iran situation and energy market disruption
Berkshire Stock Performance
BRK.B shares have gained approximately 12% year-to-date through April 30, underperforming the S&P 500’s ~16% gain but outperforming most value-oriented peers. The stock trades at approximately 1.5x book value, near the midpoint of its historical range.
Buffett has historically stated that Berkshire would buy back shares below 1.2x book value. The resumed buybacks at 1.5x suggest either a revised framework or confidence that intrinsic value significantly exceeds book value.
What This Means for Markets
Berkshire’s earnings and Buffett’s commentary serve as a barometer for the broader economy. The company’s railroad (BNSF), energy (BHE), insurance (GEICO), and consumer businesses (Dairy Queen, See’s Candies, Fruit of the Loom) collectively provide a real-time reading on American economic activity.
If Buffett’s shareholder letter includes cautionary language about market valuations — as it has in past periods of elevated multiples — it could temper sentiment following the S&P 500’s move above 7,200.
Related articles:
This article reports publicly available financial data and analyst estimates. It does not constitute investment advice.