Berkshire Buys Back $9.6 Billion of Shares in Third Quarter of 2026
Key Facts
Berkshire Hathaway repurchased about $9.6 billion of its shares in the third quarter of 2026, bringing total repurchases in the first nine months to about $14.4 billion, according to the company’s statement dated November 7. The disclosure comes as the company reported lower operating earnings than in the same quarter last year. Operating earnings were $12.705 billion, versus $13.485 billion in the third quarter of 2025, a decline of about 5.8%. Net earnings attributable to Berkshire shareholders fell to $22.112 billion from $30.796 billion. The gap between the two measures underscores the importance of distinguishing operating results from investment gains included in net earnings.
Investment gains included in net earnings fell to $9.407 billion in the third quarter from $17.311 billion a year earlier. U.S. accounting rules include changes in unrealized gains and losses on securities in results, Berkshire explained. The company said that "investment gains or losses in any given period are not indicative of quarterly operating performance." Operating earnings therefore weakened year over year alongside lower investment gains, two distinct components in interpreting net earnings. Net earnings were below their year-earlier level despite substantial investment gains during the quarter.
Results across business segments were mixed. Railroad operator BNSF’s earnings rose to $1.729 billion from $1.449 billion in the third quarter of 2025. Manufacturing, service and retail earnings also increased to $4.042 billion, compared with $3.616 billion a year earlier. By contrast, insurance underwriting earnings fell to $1.352 billion from $2.369 billion in the comparable period. Gains at BNSF and in manufacturing, service and retail were offset by weaker insurance underwriting, as part of a broader picture of operating performance during the quarter.
Berkshire’s policy allows it to repurchase Class A and Class B shares when management believes the stock price is below a conservatively estimated intrinsic value, and the program sets no specific purchase amount. In its second-quarter disclosure, the company said it was subject to neither a minimum nor a maximum repurchase amount. It added that it would not buy shares if doing so reduced cash and cash equivalents and U.S. Treasury bills below $30 billion. The company held $359.2 billion in these assets on June 30, 2026. The condition sets a limit tied to available liquidity, while leaving the purchase decision dependent on management’s assessment of the stock’s value.
Berkshire resumed share repurchases in March 2026 after a pause of nearly two years, according to a Reuters report. Chief Executive Greg Abel said the purchases can create long-term value for shareholders when the company’s intrinsic value exceeds its market price. The company had repurchased $4.8 billion of shares in the first half of 2026, most of it in the second quarter. On an annual basis, total repurchases reached $24.7 billion in 2020, while 2021 was the program’s largest year, when the company bought back $27 billion of shares, Reuters reported. On November 6, Class B shares closed at $570.95.
According to Reuters’ report on the second quarter, Berkshire’s cash holdings fell to $364.7 billion on June 30 from a record $380.2 billion three months earlier. The company’s November 7 statement covers the third quarter and the first nine months of 2026, and does not specify an official date for its next results announcement. The latest repurchase figure in this disclosure therefore remains the total of about $14.4 billion for the first nine months. Third-quarter results also show declines in operating earnings and net earnings compared with the prior year. The effect of investment gains on results remains separate from the company’s assessment of its operating businesses’ performance, in line with Berkshire’s warning.