01—Abstract
Summary
Summary of the 10-Q filed May 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Berkshire Hathaway Inc.'s Q1 2026 results show robust growth in total assets, increasing to $1.25 trilliona from $1.22 trillion at the end of 2025.
Net earnings attributable to Berkshire shareholders significantly improved to $10.1 billionb, a substantial increase from $4.6 billion in the prior year's first quarter. This strong performance was driven by a notable rebound in investment gains, which shifted from a substantial loss in Q1 2025 to a lesser loss in Q1 2026, alongside solid contributions from operating businesses. The insurance underwriting segment demonstrated improved profitability, with pre-tax underwriting earnings rising to $2.3 billion from $1.7 billion, benefiting from the absence of significant catastrophe events in the current quarter compared to the prior year.
The manufacturing, service, and retailing segments also showed resilience, with combined pre-tax earnings increasing to $4.2 billionc. While the equity securities portfolio experienced an unrealized loss, realized gains on sold securities were significant, and the company maintained substantial liquidity with over $373 billion in cash, cash equivalents, and U.S. Treasury Bills. Management highlighted the acquisition of OxyChem for $9.5 billion in January 2026 as a key strategic move.
02—Key points
Key Highlights
- Total assets grew to $1.25 trillion, up from $1.22 trillion at the end of 2025.
- Net earnings attributable to Berkshire shareholders surged to $10.1 billion in Q1 2026, up from $4.6 billion in Q1 2025.
- Insurance underwriting pre-tax earnings improved to $2.3 billion from $1.7 billion, aided by the absence of major catastrophe losses.
- Investment gains (losses) showed improvement, moving from a pre-tax loss of $6.4 billion in Q1 2025 to $1.6 billion in Q1 2026.
- Manufacturing, service, and retailing segments combined for pre-tax earnings of $4.2 billion, up from $4.0 billion in the prior year.
- Berkshire completed the acquisition of OxyChem for approximately $9.5 billion in January 2026.
- The company maintained substantial liquidity with $373.5 billion in cash, cash equivalents, and U.S. Treasury Bills as of March 31, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 4, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $93.67B$89.72B | +4.4% |
| Operating Expenses | $79.93B$78.27B | +2.1% |
| Interest Expense | $1.30B$1.26B | +3.5% |
| Net Income | $10.18B$4.67B | +117.9% |
05—Questions
Frequently Asked Questions
What was the primary driver behind the significant increase in net earnings for the first quarter of 2026?
The significant increase in net earnings to $10.1 billion was primarily driven by a substantial improvement in investment results, moving from a large pre-tax loss in the prior year's first quarter to a smaller loss in the current quarter, coupled with strong performance from the insurance underwriting and manufacturing, service, and retailing segments. The absence of significant catastrophe losses in the current quarter also positively impacted insurance underwriting results.
How has Berkshire Hathaway's investment portfolio performed in the first quarter of 2026?
In the first quarter of 2026, Berkshire Hathaway reported pre-tax investment losses of $1.6 billion, a significant improvement from the $6.4 billion pre-tax loss in the same period of 2025. While there were net unrealized losses of $3.3 billion on equity securities held at the end of the period, these were partially offset by realized gains of $1.7 billion from the sale of securities. The company continues to hold a substantial portfolio of equity securities with a fair value of $288 billion.
What is the financial impact of the OxyChem acquisition on Berkshire Hathaway?
Berkshire Hathaway acquired OxyChem for approximately $9.5 billion on January 2, 2026. The company's results for the first quarter of 2026 include the financial performance of OxyChem from the acquisition date. While OxyChem generated $1.2 billion in revenue in Q1 2026, it reported a small pre-tax loss, attributed to acquisition accounting amortization and increased operational expenses.
What are the key risks or contingencies that investors should be aware of?
Berkshire faces several ongoing risks. Notably, PacifiCorp, a subsidiary of BHE, is involved in extensive litigation related to wildfires, with cumulative estimated probable losses of approximately $2.9 billion recorded through March 31, 2026. HomeServices of America is also defending against antitrust cases related to real estate commissions. Additionally, investment portfolio volatility, especially in equity securities, can significantly impact earnings. The company also acknowledges ongoing macroeconomic and geopolitical uncertainties that could affect its diverse businesses.
06—Continue