Berkshire Hathaway Q1 2026: First Earnings Under Greg Abel Beat Expectations; Cash Pile Hits Record $397 Billion
"This is not my show today," Warren Buffett said from the arena floor, praising his successor as CEO.
Berkshire Hathaway Inc. reported first-quarter operating earnings of $11.35 billion for 2026, an increase of approximately 18% year-over-year, driven primarily by improved insurance underwriting results. The company's cash and cash equivalents reached a record $397 billion. This was the first quarterly report under CEO Greg Abel, who succeeded Warren Buffett at the beginning of 2026.
Financial Results
- Operating Earnings: $11.35 billion, up from $9.6 billion in the same quarter of 2025. This result was below the FactSet estimate of $11.56 billion.
- Net Income: Approximately $10.1 billion, more than double the $4.6 billion reported in the first quarter of 2025.
- Cash Holdings: $397 billion, up from $373 billion at the end of 2025. This was described as a record for the company.
- Share Buybacks: The company repurchased $234.2 million of its own shares during the quarter, its first buyback in over a year.
Insurance Underwriting
Insurance underwriting earnings for the quarter were $1.7 billion, an increase of approximately 28-29% from the prior year. This growth was attributed to improved results in several insurance businesses. However, Geico reported a 34-35% decline in pretax underwriting earnings, which was attributed to higher losses and client acquisition costs.
Stock Sales and Market Context
Berkshire Hathaway was a net seller of equities in the first quarter, selling $8.1 billion more in stocks than it purchased. This marked the 14th consecutive quarter of net equity selling, beginning in the fourth quarter of 2022. Total net equity sales over this period were approximately $194.8 billion.
Analysts and observers have noted the company's continued stock sales in the context of elevated market valuations. The "Buffett indicator" (total U.S. stock market capitalization divided by GDP) reached 226.8% as of April 30, 2026, compared to a historical average of 88% since 1970. The S&P 500's Shiller P/E ratio (CAPE Ratio) was above 41, significantly above its long-term average of approximately 17.
Leadership Transition: "The Legacy Continues"
Greg Abel presided over the annual shareholder meeting on May 2-3, 2026, in Omaha, Nebraska, in his first such event as CEO. Warren Buffett, now Chairman, attended from the arena floor.
Key Statements and Events:
- A commemorative jersey was raised to mark Buffett's 60 years as CEO. Buffett stated, "Greg is doing everything I did and then some, and he's doing it better."
- Abel stated that the conglomerate structure will not be dismantled, saying, "We do not see ourselves divesting subsidiaries...or ever breaking off a group."
- Abel discussed the company's nearly $400 billion cash position and stated that it would act decisively when strong value propositions arise.
- Abel addressed artificial intelligence, stating the company would not pursue AI for its own sake but would consider applications that add value. He also discussed cybersecurity risks related to AI.
- In a separate CNBC interview, Buffett commented on the investing environment, saying, "We've never had people in a more gambling mood now," but added that this does not mean investing is terrible.
Shareholder and Analyst Reactions
Following the annual meeting, Berkshire's Class B shares rose 1.3% on Monday, May 4. Several attendees and analysts commented on Abel's performance.
Steve Check of Check Capital Management called his answers "very solid" and "thorough."
Macrae Sykes of Gabelli Funds complimented the "content, examination of businesses, and confidence in outlook."
David Kass, a finance professor at the University of Maryland, stated that Abel demonstrated knowledge and passion for running the businesses and highlighted the company's "deep bench" of executives.
UBS analyst Brian Meredith noted that Abel exhibited a "deep understanding of all major businesses" and plans to drive operational excellence.