Berkshire Hathaway ($BRK.A) reported first-quarter 2026 results that showed solid growth in its core business, while net profit rose on lower investment losses.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Net earnings came in at $10.1 billion, up from $4.6 billion a year ago. However, the jump was mainly due to smaller swings in the firm’s stock portfolio. The company noted that such gains and losses are often not a clear guide to real performance, saying they can be “generally meaningless in understanding our reported periodic results.”
At the same time, total revenue rose to $93.7 billion from $89.7 billion, as most business lines showed steady demand.
Core Businesses Show Broad Strength
Looking deeper, Berkshire’s operating units delivered stable gains across the board. Insurance underwriting profit rose to $1.7 billion, helped by a calm quarter with no major disaster losses. In contrast, the prior year included large wildfire costs.
Still, insurance investment income dipped to $2.7 billion due to lower rates. In addition, GEICO saw higher claim costs, which pushed its loss ratio higher.
Elsewhere, the railroad unit BNSF posted a clear gain, with earnings up about 13%. Meanwhile, Berkshire Hathaway Energy also grew, though at a slower pace, supported by pipeline strength.
The firm’s wide mix of industrial, service, and retail units added $3.2 billion in profit, up from last year. Results varied by unit, but overall growth held firm.
Cash Pile Grows as Investment Pace Slows
Meanwhile, Berkshire continued to build its already large cash position. The firm held over $390 billion in cash and short-term Treasury bills at the end of the quarter.
At the same time, it sold more stocks than it bought, with $24.1 billion in sales versus $15.9 billion in purchases. This signals a cautious stance on market prices.
In addition, Berkshire completed a $9.5 billion deal for a chemical unit from Occidental Petroleum (OXY), showing it still sees value in select deals.
Overall, the quarter points to steady operating strength, even as headline profit swings remain tied to market moves.
Is BRK Stock a Buy, Sell, or Hold?
Turning to the Street, Berkshire Hathaway is thinly watched by the analysts. The firm has a Moderate Buy consensus, based on one analyst rating in the past three months. The average BRK.A stock price target is $871,417, which implies a 22.68% upside from the current price.
