01—Abstract
Summary
Summary of the 8-K filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Berkshire Hathaway reported first-quarter 2026 net earnings attributable to shareholders of $10.1 billiona, up from $4.6 billion a year earlier.
The headline improvement is driven largely by investment results: investment gains were a loss of $1.24 billionb, versus a loss of $5.04 billion in Q1 2025, and the release notes that GAAP requires unrealized changes in equity holdings to flow through earnings, so this line is noisy and not indicative of operating performance. The more meaningful measure is operating earnings, which rose about 18% to $11.3 billion from $9.6 billion, led by higher underwriting profit ($1.72 billion vs. $1.34 billion), a sharp jump in the 'Other' category to $1.26 billion (helped by $249 million of foreign currency gains versus $713 million of losses a year earlier), and modest growth at BNSF, BHE and manufacturing, service and retailing. Insurance investment income fell to $2.68 billion from $2.89 billion.
Balance-sheet and per-share context: insurance float rose about $0.5 billionc since year-end 2025 to roughly $176.9 billion. Net earnings per average equivalent Class A share were $7,027 versus $3,200, and per Class B share $4.68 versus $2.13. Governance and leadership items were also disclosed.
Charles C. Chang will succeed Marc D. Hamburg as CFO on June 1, 2026, at an $8 milliond annual salary.
Hamburg is receiving a NetJets flight-hour benefit estimated at about $490,000 per year through 2037. The board amended and restated the by-laws effective May 3, 2026, mainly to align officer roles with the current operating structure.
At the May 2 annual meeting, all director nominees were elected, though Greg Abel and others faced varying levels of withheld votes; the say-on-pay proposal passed with a large majority, and shareholders voted for a triennial frequency for future advisory votes. A shareholder proposal on a workforce and human-capital oversight report was defeated.
02—Key points
Key Highlights
- Net earnings attributable to Berkshire shareholders rose to $10.1 billion in Q1 2026 from $4.6 billion in Q1 2025, though this is distorted by investment swings.
- Operating earnings (excluding investment gains/losses) increased about 18% to $11.3 billion from $9.6 billion.
- Investment results were a $1.24 billion loss versus a $5.04 billion loss a year earlier; GAAP forces unrealized equity marks through earnings, and management says these figures are not meaningful for quarterly assessment.
- Insurance underwriting earnings climbed to $1.72 billion from $1.34 billion, while insurance investment income declined to $2.68 billion from $2.89 billion.
- 'Other' operating earnings jumped to $1.26 billion from $41 million, largely reflecting a swing from $713 million in FX losses to $249 million in FX gains.
- Insurance float grew about $0.5 billion since year-end 2025 to approximately $176.9 billion.
- CFO transition: Charles C. Chang succeeds Marc D. Hamburg on June 1, 2026, at an $8 million annual salary; Hamburg receives a NetJets benefit through May 2037 costing about $490,000 per year.
03—Questions
Frequently Asked Questions
Why did Berkshire's net earnings more than double in Q1 2026?
Most of the increase reflects smaller investment losses ($1.24 billion in 2026 vs. $5.04 billion in 2025) and higher operating earnings, which rose to $11.3 billion from $9.6 billion. Much of the investment swing comes from GAAP requiring unrealized changes in equity holdings to be recorded in earnings, so it should not be read as a measure of underlying business performance.
What drove the growth in operating earnings?
The largest contributors were the 'Other' category (up to $1.26 billion, helped by foreign currency gains of $249 million versus losses of $713 million a year earlier), insurance underwriting (up roughly $380 million to $1.72 billion), and gains at BNSF ($1.38 billion vs. $1.21 billion) and manufacturing, service and retailing ($3.20 billion vs. $3.06 billion). Insurance investment income declined.
What does the CFO change mean for investors?
Marc Hamburg, who has been CFO for many years, retires and Charles Chang takes over on June 1, 2026. The filing discloses Chang's $8 million annual salary and a retirement travel benefit for Hamburg estimated at about $490,000 per year through 2037. The transition appears planned, as it was previously announced, but investors may watch for continuity in financial reporting and capital allocation.
Did shareholders approve the executive compensation and governance proposals?
Yes. All 13 director nominees were elected, with Greg Abel receiving 431,852 votes for and 3,454 withheld, and the say-on-pay advisory vote passed with 403,351 for against 30,251 against. Shareholders favored holding advisory votes on executive pay every three years (288,858 votes), and the workforce human-capital oversight proposal failed with 65,023 for and 367,387 against.
Why were the by-laws amended?
The board amended and restated the by-laws effective May 3, 2026, primarily to update officer roles and responsibilities (Sections 4, 6 and 10) so they match Berkshire's current operating structure. The filing does not describe changes to shareholder rights or governance terms beyond these sections.
04—Continue