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Stocks
Berkshire Hathaway Inc.
BRK-B

BRK-B Berkshire Hathaway Inc.

Berkshire Hathaway Inc. · NYSE
Market Open
542.11
▼ ⁦-0.89%⁩ (-4.86)
Market Cap$1.2T
Beta0.60
52w Low52w High
464.01549.96
Last Week
⁦+1.90%⁩
EL7 Factor Analysis
How we score this
Overall73
Strong — clearly above market medianSuper StockF 5/8Better than 73% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
70
0.0x▲17.5xTop tier
▸
Growth
37
3.9%▼7.1%Bottom tier
▸
Quality
71
——Top tier
▸
Safety
74
——Top tier
▸
Capital Return
0
0.00%▼0.06%Bottom tier
▸
Momentum
88
3.2%▲-0.9%Top tier
▸
Sentiment
71
33Top tier
Related News
Last Month
⁦+7.31%⁩
Last 3 Months
⁦+9.04%⁩
Last Year
⁦+10.23%⁩
Fair Value
Current price⁦$541⁩
  • Analyst targetsLow confidence
    1 analysts
    ⁦$628⁩
    ⁦+16%⁩
    Typical for this method across large companies: ⁦+15%⁩

10-year US Treasury yield ⁦5.13%⁩ as of ⁦2026-10-21⁩. Estimates computed from company data and analyst targets, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 1 analysts setting price target
$628.00
⁦+15.8%⁩
Current Price $542.11·Median $628.00
Low
$628.00
High
$628.00
Street summary

Target Price Raised While Rating Holds Steady

Bullish tilt

The consensus target price rose from 604 to 628, an increase of 24 or 3.97%, while the number of analysts remained at one. The estimate trend is upward, but dispersion cannot be measured because coverage is limited to one analyst, whose high, low, and consensus estimates are identical.

As of 2026-10-22
Revisions momentum · 30d
⁦+4.0%⁩
Average rating
★ 3.50
Buy
Analyst coverage
4
Buy conviction
50%
Mixed
Rating activity · 30d
0↑ · 0↓
Target dispersion
0%
Analyst ratings over time4 analysts rating
2
2
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months4.00 → 3.50
Recent analyst moves
  • = Reiterate2026-10-22
    UBS
    Buy
  • = Reiterate2025-11-03
    UBS
    Buy
  • = Reiterate2025-10-15
    UBS
    Buy
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    —
    —
  • Forward P/E
    25.65x
    2.63x21.06x
    Very expensive
  • EV / EBITDA
    —
    —
  • FCF Yield
    —
    —
  • Revenue Growth YoY
    3.9%
    -36.7%96.7%
    Near median
  • EPS Growth YoY
    36.3%
    -100.0%210.8%
    Near median
  • Gross Margin
    —
    —
  • ROIC
    —
    —
  • Net Debt / EBITDA
    —
    —
  • Dividend Yield
    0.0%
    0.0%8.6%
    Low
  • Payout Ratio
    —
    —
  • Altman Z-Score
    —
    —
Financial Analysis
|
Berkshire Hathaway Inc. earnings page

Stock Analysis

AI-generated
Last updated: 2026-10-19

Company Overview

Berkshire Hathaway combines insurance, railroad operations, and investments in other companies, spreading its earnings sources across business operations and returns on invested capital. The differing performance of these activities is evident in quarter 2 of fiscal year 2026 (ended 2026-06-30), as news reports indicated higher railroad operating earnings alongside lower insurance underwriting earnings; therefore, an improvement in consolidated profit is insufficient to assess the strength of all operations.

According to EL7 data, revenue was approximately 101.8 billion dollars in quarter 2 of fiscal year 2026 (ended 2026-06-30), net income was 25.7 billion dollars, and diluted earnings per share were 11.91 dollars. The operating margin, as calculated by EL7, was approximately 17.2% for the same period. A reliable comparison of annual revenue growth is unavailable because the definition of the revenue line item differs between the periods.

According to EL7 data, operating cash flow was approximately 11.2 billion dollars in quarter 2 of fiscal year 2026 (ended 2026-06-30), demonstrating continued cash generation from operations. For fiscal year 2025 (ended 2025-12-31), revenue was 371.4 billion dollars and net income was 67.0 billion dollars. The investment question centers on the group's ability to translate its financial strength into sustainable growth, amid differing performance in insurance and railroad operations and expanding technology investments.

Key numbers

Q2 FY2026

Revenue (EL7 data)
Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

$101.8B
Operating margin
17.2%
Net income
$25.7B
+107.5%vs a year earlier
Diluted EPS
11.91
+107.9%vs a year earlier

What's Driving the Stock

  • The results for quarter 2 of fiscal year 2026 (ended 2026-06-30) put operating capability at the forefront of monitoring, with net income of 25.7 billion dollars and an operating margin, as calculated by EL7, of 17.2%, while higher railroad earnings and lower insurance underwriting earnings indicate uneven sources of performance within Berkshire Hathaway.
  • The investment agreement involving Bending Spoons, covered in news reports dated 2026-10-16, expands Berkshire Hathaway's exposure to the company that owns AOL and Vimeo; the agreed investment is approximately 330 million dollars and raises its stake to 4%, funding a strategy based on technology acquisitions.
  • The decision dated 2026-09-18 redistributed governance responsibilities, with Howard G. Buffett becoming chairman of the board and Warren Buffett moving to the role of chairman emeritus while remaining a board member; Greg Abel continues to run the company as president and chief executive officer, having assumed executive responsibility on 2026-01-01.

Buying & Selling Case

▲ Buying Case4 pts

  • +Berkshire Hathaway has notable relative financial strength, with the financial safety factor, which measures financial resilience, scoring 95 out of 100 within the industry and the company ranking 5 out of 78 according to data for the period ended 2026-06-30; this is the strongest element of its investment case compared with industry peers.
  • +The businesses support the group's ability to generate cash, with operating cash flow, according to EL7 data, of 11.2 billion dollars in quarter 2 of fiscal year 2026 (ended 2026-06-30), providing a cash foundation to fund capital allocation decisions.
  • +The investment agreement involving Bending Spoons, covered in news reports dated 2026-10-16, gives Berkshire Hathaway a 4% stake through an additional investment of approximately 330 million dollars, adding participation in the expansion of a company that owns AOL and Vimeo and relies on technology acquisitions.
  • +Relative market performance supports the positive case, with the momentum factor, which measures the strength of the stock's performance trend, scoring 85 out of 100 within the industry and the company ranking 11 out of 68 according to data for the period ended 2026-06-30.

▼ Selling Case4 pts

  • −The decline in insurance underwriting earnings in quarter 2 of fiscal year 2026 (ended 2026-06-30) reveals weakness in one of Berkshire Hathaway's core businesses, even as railroad operating earnings increased; a continuation of this divergence would limit the breadth of operating improvement across the group.
  • −Relative growth strength remains limited, with the growth factor, which measures growth in financial performance, scoring 30 out of 100 within the industry and the company ranking 55 out of 77 according to data for the period ended 2026-06-30, placing a burden on new investments to demonstrate their contribution to business expansion.
  • −Weak relative shareholder returns undermine one aspect of the investment case, with the factor measuring returns delivered to shareholders scoring 27 out of 100 within the industry and Berkshire Hathaway ranking 55 out of 75 according to data for the period ended 2026-06-30.
  • −The valuation factor comparison offers little support, with the valuation factor, which compares valuation metrics within the industry, scoring 11 out of 100 and the company ranking 69 out of 77 according to data for the period ended 2026-06-30.

What would change this view

When: 2026-11-07

  • Operating margin, as calculated by EL7, at the 17.2% threshold in the expected earnings release

    ▲ Positive
    An operating margin, as calculated by EL7, of 17.2% or higher would strengthen the buying case by confirming that the profitability level recorded in quarter 2 of fiscal year 2026 (ended 2026-06-30) has been maintained.
    ▼ Negative
    An operating margin, as calculated by EL7, below 17.2% would strengthen the selling case by raising questions about the sustainability of the profitability level recorded in quarter 2 of fiscal year 2026 (ended 2026-06-30).
  • Operating cash flow, according to EL7 data, at the 11.2 billion dollar threshold in the expected earnings release

    ▲ Positive
    Operating cash flow, according to EL7 data, of 11.2 billion dollars or higher would strengthen the buying case by confirming continued cash generation at the level recorded in quarter 2 of fiscal year 2026 (ended 2026-06-30).
    ▼ Negative
    Operating cash flow, according to EL7 data, below 11.2 billion dollars would strengthen the selling case by raising questions about maintaining the cash-generating capacity recorded in quarter 2 of fiscal year 2026 (ended 2026-06-30).

Valuation

The median analyst target is 604 dollars per share, an indicative estimate with low confidence because it relies on a single analyst, reflecting performance and growth expectations with a neutral consensus. The industry-multiple valuation is 474 dollars per share, within a range of 330 dollars to 623 dollars, based on book value and a median multiple of 1.4 across 18 companies, measuring Berkshire Hathaway's value when priced like its peers. The analyst target falls within the range of the industry-multiple method but exceeds its central value; the difference reflects the target's reliance on expectations versus the industry multiple's reliance on a book-value comparison. Analyst targets tend to be optimistic by nature, so limited coverage remains a constraint on the strength of conclusions drawn from the 604-dollar target.

HoldAnalyst target: $604(+11.4%)

Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.

FAQ

How does Berkshire Hathaway generate earnings, and why do the results of its businesses differ?

Berkshire Hathaway combines insurance, railroad operations, and investments in other companies. According to EL7 data, revenue was approximately 101.8 billion dollars in quarter 2 of fiscal year 2026 (ended 2026-06-30), with net income of 25.7 billion dollars. During the same period, railroad operating earnings increased while insurance underwriting earnings declined, making it necessary to monitor individual businesses to understand the consolidated results.

What does the increased investment in Bending Spoons mean for Berkshire Hathaway?

News reports dated 2026-10-16 covered Berkshire Hathaway's agreement to invest approximately 330 million additional dollars in Bending Spoons through a private placement. The agreement raises its stake to 4% in the company, which owns AOL and Vimeo and expands its business through technology acquisitions. This adds exposure to that strategy, but the agreement's value alone does not establish the size of its future contribution to Berkshire Hathaway's earnings.

Who leads Berkshire Hathaway following the September 2026 decision?

Howard G. Buffett became chairman of the board under a decision announced on 2026-09-18 and effective immediately. Warren Buffett became chairman emeritus while retaining his board membership. Greg Abel continues as president and chief executive officer, having assumed executive responsibility effective 2026-01-01.

Why does the analyst target differ from the industry-multiple valuation for BRK-B shares?

The median analyst target is 604 dollars, but it is based on a single analyst and is therefore considered indicative with low confidence. The industry-multiple valuation is 474 dollars, within a range of 330 dollars to 623 dollars, based on book value and a median multiple of 1.4 across 18 companies. The target reflects growth and performance expectations, while the second method reflects pricing the company like its peers, so the difference between the values does not mean that either one settles the valuation.