Operating earnings of $11.35B (+18%), insurance underwriting up 29%, and BNSF railroad up 13% — Geico the lone weak spot in Greg Abel's first quarter at the helm.
Berkshire Hathaway has reported its first quarter under Greg Abel as CEO. Cash holdings hit a record $397 billion at the end of Q1 2026, lifted by $8.1 billion in net stock sales.
Abel took the stage at the Omaha annual meeting for the first time as CEO, with 95-year-old Warren Buffett briefly opening the proceedings.
Record cash and a buyback restart
Even with cash piling up, Abel restarted share repurchases. Berkshire bought back $234.2 million of its own stock in Q1, ending a buyback pause that had lasted more than a year. Abel had previously argued that Berkshire's intrinsic value exceeded its market price; this buyback acts on that view. The stock is still down 5.9% year-to-date, lagging the broader market.
Operating earnings +18%, insurance leads
Total operating earnings reached $11.35 billion, up 18% year-on-year. Insurance underwriting profit jumped 29% to $1.7 billion, the engine of growth. The prior-year comparison was helped by California wildfire losses that depressed last year's base.
BNSF Railway also delivered, with net income up 13% to $1.4 billion — a direct response to the operating efficiency mandate Abel has set.
We're satisfied with the first-quarter results, but there's still room for improvement.
Greg Abel, CEO of Berkshire Hathaway
Geico still struggling
In contrast to the broader insurance strength, auto insurer Geico's pretax underwriting profit fell 35%. Losses rose alongside higher costs to acquire new customers.
Most Geico competitors reported sharply improved underwriting results this quarter. Because Geico is such a big segment, a decline of this magnitude really hurts.
Cathy Seifert, CFRA Research analyst
Abel is reported to have driven the sale of part of the equity position previously managed by Todd Combs in Q1, according to The Wall Street Journal. Combs left Berkshire in December for a broader investment advisory role at JPMorgan Chase.
Abel's challenge — the long shadow of Buffett
This earnings report carries symbolism as much as it carries numbers. For decades, Berkshire shareholders took Buffett-led performance for granted. The fact that the stock has lagged the market since Abel took over suggests investors have not yet fully embraced the new leadership.
The Kraft Heinz stake also continues to carry a book value $1.4 billion above its fair value. Berkshire took no additional impairment this quarter, but a $3.8 billion loss recognized last year shows the risk remains.
