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[BUSINESS] · United States · 41 sources

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Berkshire Hathaway reports increased Q2 profit and shifts to net stock buying

Berkshire Hathaway reported a strong second quarter for 2026, with operating earnings rising 16% to $12.98 billion. Net income more than doubled to $25.67 billion, aided by significant investment gains of $12.68 billion, though management cautioned that GAAP net income can be distorted by unrealized stock portfolio fluctuations.

Under the leadership of CEO Greg Abel, the conglomerate shifted its investment strategy, becoming a net buyer of equities for the first time in 14 quarters. The company made approximately $20 billion in net stock purchases, including a $10 billion investment in Alphabet. Additionally, Berkshire accelerated its share repurchase program, spending $4.5 billion on its own stock during the second quarter.

These activities, along with the completion of the $6.8 billion acquisition of Taylor Morrison, led to a reduction in cash reserves, which fell to approximately $365 billion from a previous high of nearly $400 billion. Performance was bolstered by growth in manufacturing, service, and retail sectors, and BNSF railroad, which helped offset weaker results in the insurance underwriting division.

Entities

Alphabet · Alphabet Inc. · BNSF · Berkshire Hathaway · Greg Abel · Taylor Morrison Homes · Warren Buffett

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