This marks the first quarterly report for Berkshire Hathaway under CEO Greg Abel, following the long tenure of Warren Buffett. The company reported $11.35 billion in operating earnings for the first quarter of 2026.
Key financial highlights:
- Berkshire Hathaway’s cash pile rose to more than $397 billion.
- Operating earnings increased nearly 18% from last year but fell short of estimates, which were $11.56 billion.
- Net income attributable to shareholders surged to roughly $10.1 billion, more than double from $4.6 billion last year.
- Insurance underwriting contributed $1.7 billion, reflecting a 28% increase compared to the same period last year.
- However, Geico reported a concerning 34% drop in earnings despite the overall rise in insurance underwriting.
Greg Abel officially took over as CEO on January 1, 2026. His leadership style and decisions will be closely scrutinized as Berkshire navigates this transitional phase. Warren Buffett, who attended the annual meeting and led the company for six decades, expressed confidence in Abel’s capabilities. He stated, “Greg is doing everything I did and then some, and he’s doing it better in all cases. He’s the right person.” This endorsement sets a high bar for Abel’s performance.
Abel has emphasized his commitment to maintaining Berkshire’s core values—highlighting a team that shares a deep understanding of the company’s operations. The annual meeting also underscored Berkshire’s substantial investment in Apple, which recently reported better-than-expected earnings with iPhone sales up 22% compared to a year ago.
The landscape ahead is complex for Berkshire Hathaway. With significant cash reserves and fluctuating insurance earnings, how will Greg Abel steer this ship? Will he be able to mitigate Geico’s downturn while capitalizing on other lucrative sectors? These questions linger as stakeholders look for clarity in an evolving market.
