Key Points
- Berkshire repurchased $9.6 billion in shares in the third quarter.
- Affected by the weakening of insurance business, net profit decreased by 28%
- Under the leadership of Greg Abel, the company accelerated its share repurchases amidst shrinking quarterly profits.
In the third quarter of 2026, Berkshire Hathaway repurchased $9.6 billion of its own shares, and despite a 28% decline in net profit, as well as a significant drop in profits from its Ge token issuance insurance business, the company clearly accelerated its repurchase efforts.
According to the financial report released by Berkshire on November 7, the quarterly net profit decreased from $30.8 billion in the same period last year to $22.11 billion. Excluding the more volatile investment gains and losses, operating profit fell by 5.8% to $12.71 billion.
This result reflects another important decision made by CEO Greg Abel regarding capital allocation. Abel took over from Warren Buffett in January and has since been more proactive in utilizing Berkshire Hathaway's substantial cash reserves.
Abel accelerates repurchases, Berkshire's profits decline
Berkshire's third-quarter repurchase volume of $9.6 billion is approximately twice the $4.8 billion in repurchases spent in the first six months of 2026.
As of September, the company had repurchased $14.4 billion in shares for the year, and it was reported that they bought an additional $2 billion in shares in October, indicating a clear change in their capital deployment strategy.
After Buffett passed the baton, this accelerated repurchase action signifies that Abel has begun to be responsible for managing Berkshire's vast investment portfolio and business operations.
As of the end of September, Berkshire Hathaway held approximately $356.9 billion in cash and equivalents, a figure that includes its insurance and other businesses; at the end of March, this amount was around $380.2 billion.
Despite the repurchases, this comprehensive group still retains sufficient financial flexibility to be used for mergers and acquisitions, investment opportunities, and to cope with potential economic shocks.
This change occurred after Berkshire Hathaway ended its long-term reduction of stock holdings; earlier this year, the company even increased its investment in Alphabet.
Ge Token Issuance Profits Drop by 45%, but Railway Business Remains Strong
Berkshire's insurance business is the main drag.
Insurance underwriting profits decreased by 43% year-on-year to $1.35 billion, compared to $2.37 billion in the same period last year. Due to rising claims costs and advertising expenditures, the underwriting profits from the issuance of Ge tokens decreased by about 45% to $982 million.
Insurance investment returns also declined by 14% to $2.73 billion, further suppressing the group's operating results.
However, several non-insurance businesses performed significantly better.
BNSF Railway profits increased by 19% to $1.73 billion; Berkshire Hathaway Energy's profits grew by 8% to $1.61 billion. Profits from manufacturing, services, and retail businesses increased by about 12% to $4.04 billion.
These growths helped to offset the weakness in the insurance business and also demonstrated the advantages of Berkshire's diversified business structure.
Repurchase shows confidence, despite a 8.7 billion dollar decrease in net profit
Reported a 28% decline in net profit, partly due to the accounting treatment of investments, which does not necessarily mean that all operating businesses are deteriorating.
Investment returns fell from $17.31 billion in the same period last year to $9.41 billion. Berkshire Hathaway reminded that quarterly investment returns, including unrealized stock market fluctuations, may distort reported profits.
The company continues to diversify its investments, including making an additional commitment of $330 million to the Italian software company Bending Spoons.
