Berkshire Hathaway reported its first-quarter 2026 results on Saturday, marking the company’s initial earnings release under new CEO Greg Abel — and the numbers suggest the transition from Warren Buffett’s six-decade reign is off to a solid financial start.
The Numbers
Operating earnings rose 18% year-over-year to $11.3 billion, or $7,889.44 per Class A share, up from $9.6 billion ($6,703.41 per share) in Q1 2025. The figure fell slightly short of analyst estimates of $11.56 billion.
Net earnings surged to $10.1 billion ($7,027 per Class A share), more than doubling from $4.6 billion ($3,200 per share) a year ago.
Cash pile: A record $397.4 billion, up from $373 billion at end of 2025 — meaning Berkshire added roughly $24 billion in cash in a single quarter.
Insurance: The Engine
Insurance underwriting earned $1.7 billion, a 28% increase year-over-year. However, Geico — typically Berkshire’s crown jewel in auto insurance — reported a 34% drop in earnings, raising questions about competitive pressures in the auto insurance market.
The Annual Meeting: A Quieter Affair
The annual shareholder meeting took place Saturday at Omaha’s CHI Health Center, but the atmosphere was markedly different. The arena was only a little over half full — a stark contrast to the packed houses of the Buffett era.
Greg Abel, 63, took center stage for his first meeting as CEO. He reviewed core stock holdings, reiterated Buffett’s investment principles, and fielded shareholder questions with a measured, operational tone rather than Buffett’s trademark folksy storytelling.
Buffett himself, now 95, attended but stayed largely off-center stage. He briefly took the microphone to praise Abel’s performance and recognized Apple CEO Tim Cook, who was in the audience.
What the Cash Pile Signals
$397 billion in cash — roughly 7.5% of Berkshire’s total assets — signals that Abel is maintaining Buffett’s patient approach. No major acquisitions were announced, despite market valuations becoming more stretched with the S&P 500 at all-time highs.
For investors, this raises a strategic question: Is Berkshire waiting for a correction to deploy capital, or has the company simply grown too large to find deals that move the needle?
Stock Performance
Berkshire shares have struggled heading into the annual meeting. The stock is down from its highs, with some analysts attributing the weakness to the leadership transition and concerns about succession-era capital allocation.
Key Takeaways for Investors
- Operating fundamentals remain strong — 18% growth in operating earnings is no small feat for a $1 trillion+ conglomerate
- The cash keeps piling up — $397B with no obvious deployment target means Berkshire remains a bet on patience
- Geico weakness bears watching — a 34% earnings drop suggests competitive or pricing headwinds
- The Buffett premium is fading — smaller crowds and stock weakness suggest the market is still pricing in the leadership transition
The April jobs report (May 8) and Fed rate decisions remain key macro catalysts that could influence when Berkshire finally deploys its record cash hoard.
Related: Berkshire Q1 2026 Earnings Preview | S&P 500 and Nasdaq Hit All-Time Highs This Week
Sources: Berkshire Hathaway Q1 2026 earnings release, CNBC, Yahoo Finance, Investing.com