Berkshire repurchased $9.6 billion of stock as third-quarter profits declined.
Why it matters: Berkshire’s buybacks are closely watched as a signal of management’s view of the company’s valuation. The purchases also offer an early test of capital deployment under post-Buffett management.
- Berkshire repurchased approximately $9.6 billion of Class A and Class B shares in the third quarter, up from $4.5 billion in the second quarter.
- Third-quarter operating earnings fell 5.8% year over year to $12.705 billion, while net earnings declined 28.2% to $22.112 billion.
- Berkshire held approximately $377.4 billion in cash, cash equivalents and short-term U.S. Treasury bills at September 30.
- Insurance results weakened, while BNSF, Berkshire Hathaway Energy, and manufacturing, service and retailing earnings increased.
Berkshire Hathaway more than doubled its share repurchases in the third quarter, buying approximately $9.6 billion of Class A and Class B shares, according to reported results. That compares with approximately $4.5 billion in the second quarter. The company acquired $14.4 billion of treasury stock during the first nine months of 2026, including purchases made in September that settled in October.
Berkshire’s policy allows its chief executive, after consulting with the chairman, to repurchase shares when they are believed to be “below Berkshire’s intrinsic value, conservatively determined,” as disclosed in the Form 10-Q. The filing does not disclose Berkshire’s intrinsic-value estimate, the thresholds for individual purchases, or whether Warren Buffett personally directed the transactions.
The higher buybacks came as quarterly operating earnings fell 5.8% to $12.705 billion, or approximately $8,954 per Class A share, from $13.485 billion a year earlier. Net earnings attributable to shareholders dropped 28.2% to $22.112 billion, partly because after-tax investment gains declined to $9.407 billion from $17.311 billion.
Insurance was the main drag. Underwriting profit fell to $1.352 billion from $2.369 billion, and insurance investment income declined to $2.734 billion from $3.181 billion. Geico’s underwriting profit dropped to $982 million from $1.77 billion, according to The Associated Press.
Other businesses improved: BNSF earned $1.729 billion, Berkshire Hathaway Energy earned $1.612 billion, and manufacturing, service and retailing earned $4.042 billion. Berkshire’s liquidity also increased, despite the buybacks, to approximately $377.4 billion at September 30.
By the numbers
- $9.6 billion - Berkshire’s third-quarter share repurchases, up approximately 113% from the second quarter
- $22.112 billion - Third-quarter net earnings attributable to shareholders, down 28.2% year over year
- $377.4 billion - Cash, cash equivalents and short-term U.S. Treasury bills held at September 30
Yes, but: The buybacks suggest management viewed Berkshire shares as attractively valued under its stated policy, but the company has not disclosed its intrinsic-value estimate or the exact thresholds used. The filing also assigns authority to the chief executive after consultation with the chairman, so the purchases should not be attributed solely to Warren Buffett.
What's next: Berkshire’s capital-allocation decisions and operating results will remain the focus as investors assess buybacks under post-succession management.