Berkshire spends $9.6B on buybacks as operating profits drop

Berkshire Hathaway stepped up its share repurchases during the third quarter, spending $9.6 billion to buy back its own stock. That figure is more than double the $4.5 billion repurchased in the second quarter. It lifts the company’s total buybacks for 2026 to around $14.4 billion.

Insurance slowdown hits earnings

The buyback push took place as operating profits from wholly owned businesses fell 5.8% year over year to $12.705 billion, down from $13.485 billion. Weaker results in the insurance unit drove the decline. Underwriting profit fell 43% to $1.352 billion, and insurance investment income dropped 14% to $2.734 billion. In contrast, operating profit grew across Berkshire’s railroad, energy, and manufacturing businesses.

Total earnings, which count investments in public stock portfolios, decreased 28% year over year to $22.112 billion from $30.796 billion. Investment gains dropped by nearly half to $9.407 billion. Even with those declines, Berkshire’s top equity investments did not shift. Its five biggest equity holdings remained Alphabet, American Express, Apple, Bank of America, and Coca-Cola.

Cash pile expands amid market rotation

Berkshire’s total cash rose 3% in the third quarter to $377.435 billion, up from $365.514 billion in the prior quarter. Stripping out rail and utility funds, as well as Treasury bill payables, net cash sat at $352.3 billion, representing a 1.9% decline quarter over quarter.

Berkshire’s Class A stock climbed over 12% in the past month, beating the wider market as investors shifted away from tech stocks. The S&P 500 fell 5.5% across the same period. For the year to date, Berkshire gained 13%, while the S&P 500 advanced 7.8%.