Berkshire Hathaway (BRK-B) 2026 Q1 Earnings Brief
Summary
Warren Buffett's investment empire — Berkshire Hathaway — reported quarterly revenue of $63.1B and net income of $10.1B (which includes unrealized gains/losses on the investment portfolio and can be highly volatile). Total assets have surpassed $1.25 trillion, with a massive cash pile waiting for the next "elephant-sized" investment opportunity.
⚠️ Before You Read This Report, You Need to Know
Net Income Can "Lie"
Under U.S. GAAP accounting rules, Berkshire must include unrealized gains and losses on stocks like Apple and American Express in its net income. This means net income can skyrocket in quarters when markets rise — and become a massive loss when markets fall — even if the underlying business hasn't changed. Buffett himself has repeatedly said publicly that looking at net income is meaningless; look at "operating earnings" instead.
No Unified A/B Share EPS
Berkshire has two share classes: Class A (BRK-A) and Class B (BRK-B). Class A shares trade at roughly 1,500x the price of Class B. Therefore there is no simple "earnings per share" comparison, and the stock price cannot be directly compared to other companies.
📊 Stock Price & Market Cap
Data as of: May 14, 2026
In Plain Language
- Berkshire's market cap is about $1.1 trillion — one of the very few companies globally to break the trillion-dollar barrier, and it's NOT a tech company — it's a diversified conglomerate of insurance, railroad, energy, and investments
- The stock near its 52-week high signals the market continues to recognize Berkshire's long-term value
- Why only 14x P/E? Because GAAP net income is extremely volatile, swinging with the investment portfolio. Buffett considers "operating earnings" a more accurate measure; valuing on operating earnings would give a higher multiple. The 14x P/E makes it look cheap compared to many companies, but that number has limited meaning
🏦 What Does Wall Street Think?
Data as of: May 2026 · Source: stockanalysis.com
Only 1 Analyst Covers It — This is Highly Unusual
For a company worth over $1 trillion, you'd normally expect 30-40 analysts following it closely. Berkshire has only 1. There are deep reasons for this:
- Buffett doesn't hold earnings calls: Almost every public company holds quarterly conference calls for analysts to ask questions. Berkshire doesn't. Buffett communicates only through his annual shareholder letter and the annual meeting
- No earnings guidance whatsoever: The company never predicts how much it will earn next quarter. Without guidance, analysts can't build models — drastically reducing the value of coverage
- The business is too complex: 70+ subsidiaries spanning insurance, railroads, energy, and manufacturing. Standard financial models can't capture it well
- The one analyst expects Berkshire to reach $570 12 months from now, rating: Strong Buy
In Plain Language
- Low analyst coverage doesn't mean the company is bad — it shows Buffett's unique operating philosophy: he doesn't need to please Wall Street
- Buffett's philosophy: focus on long-term value, ignore quarterly noise, give no short-term guidance
- The $570 12-month target is essentially the current stock price — a year from now, the analyst thinks shares will still be fairly valued where they are today
💰 How Much Did They Earn? (Q1 2026)
| Metric | Q1 2026 | Notes |
|---|---|---|
| Total Revenue | $63.1B | Includes insurance, railroad, energy, manufacturing, and all other businesses |
| Net Income (GAAP) | $10.1B | ⚠️ Includes unrealized portfolio gains/losses — highly volatile |
| Earnings Per Share | N/A | Two share classes; no simple comparison possible |
| Total Assets | $1,252.3B | Over $1.25 trillion! |
In Plain Language
- Revenue of $63.1B comes from real businesses and is a reliable figure; net income of $10.1B mixes in investment mark-to-market swings and should be taken with a grain of salt
- If markets fell in a given quarter, the same underlying business could report a "loss" — but Berkshire hasn't actually lost money, just the accounting numbers changed
- Buffett recommends looking at "Operating Earnings" — which more accurately reflects the actual profitability of the subsidiary businesses
🏢 Five Business Segments
Berkshire's businesses are extremely diversified. Here are the five core segments:
Insurance
GEICO auto insurance, General Re reinsurance, Berkshire Hathaway Reinsurance
In Plain Language
- Insurance is the empire's core engine: It's not just about collecting premiums — the more important thing is generating "float"
- What is float? Customers pay premiums upfront, and claims are paid later. In between, Berkshire invests that money. This $170B+ float is essentially free investment capital that Berkshire uses to generate returns
- GEICO is America's household-name auto insurer, maintaining a price advantage through a low-cost direct sales model (no intermediaries)
BNSF Railway (Burlington Northern Santa Fe)
One of America's largest freight railroads, transporting coal, grain, automobiles, and industrial goods
In Plain Language
- Railroads are one of Buffett's favorite businesses: No competitor can build an equivalent railroad, making the moat extremely deep
- American grain, coal, and auto parts move by rail. BNSF is the "circulatory system" of the western U.S. economy
- Railroad revenue closely tracks economic conditions — freight volume is a useful indicator of the U.S. economy
Berkshire Hathaway Energy
Electricity, natural gas, renewable energy across multiple U.S. states
In Plain Language
- Energy is a "stabilizer": electricity is a necessity, demand doesn't swing wildly, providing predictable and steady returns
- Heavily investing in wind, solar, and other renewables — aligned with America's energy transition
- Government-regulated, which caps profits but also reduces risk
Manufacturing, Service & Retail
See's Candies, Dairy Queen, and dozens of other subsidiaries beyond BNSF
In Plain Language
- Buffett favors "simple, understandable businesses with brand moats" — like See's Candies (huge sales every Valentine's Day)
- These businesses won't grow explosively like tech companies, but they're also hard to disrupt — generating steady profits year after year
- Many small manufacturing and service companies create a diversification effect that reduces risk
Investment Portfolio
Large positions in Apple, American Express, Coca-Cola, Chevron, and other public companies
In Plain Language
- Apple is Berkshire's largest holding — though Buffett has trimmed the position in recent years, he still holds a large stake
- Berkshire currently holds over $300B in cash, an all-time high. Buffett isn't rushing to deploy it — he's waiting for the "perfect elephant-sized opportunity"
- That massive cash pile earns meaningful interest income in Treasuries, so "waiting" isn't costly
- This portion of investments directly affects GAAP net income through mark-to-market swings — which is why the net income number has limited meaning
🏦 How Strong is the Balance Sheet?
| Metric | Amount | Notes |
|---|---|---|
| Total Assets | $1,252.3B ($1.25T) | One of the largest companies globally by assets (as of March 31, 2026) |
| Cash & Cash Equivalents | $300B+ | Including Treasuries and short-term investments — all-time high |
| Market Cap | ~$1.1T | Note: market cap is less than total assets (see explanation below) |
| Insurance Float | $170B+ | "Free" investment capital — core competitive advantage |
In Plain Language
- Note: Total assets of $1.25T ≠ Berkshire's market value. Berkshire's market cap is about $1.1T — actually less than total assets. This is extremely rare among large companies. The gap is because total assets include large insurance reserves (money "owed to policyholders") that don't belong to shareholders
- What does $1.25T in total assets mean? Only a handful of companies globally reach this scale — mainly large banks like JPMorgan and Bank of America. Berkshire is extraordinarily rare among non-financial enterprises
- Holding over $300B in cash: Buffett is waiting for the right moment to "strike" — buying a large company or making a major stock investment. Markets believe when the opportunity comes, this cash will generate far above-average returns
- The $170B+ float is Berkshire's most unique advantage — essentially "other people's money that you get to invest for your own gain"
📈 What Makes Berkshire Unique?
Core Strengths
- Massive cash waiting for opportunities: $300B+ cash is the most powerful card when markets are turbulent
- Float moat: $170B+ of essentially free capital is an advantage almost no other company can replicate
- Extreme diversification: 70+ subsidiaries — no single industry's troubles can be fatal
- Long-termism: No chasing short-term results, focus on intrinsic value — attracts the same type of long-term investors
Risks to Watch
- Succession question: Buffett is 94; Greg Abel has been named as successor, but markets still have questions about the "post-Buffett era"
- Scale makes growth harder: At trillion-dollar market cap, small acquisitions are meaningless — only "elephant-sized" investments can move the needle
- Highly volatile net income: GAAP requires marking investment portfolios to market, so any market move swings profits wildly — confusing for uninitiated investors
🎯 Key Points for Investors
GAAP requires including stock mark-to-market swings in earnings — large quarterly swings. Buffett himself says look at "operating earnings" for accuracy
One of the world's largest non-financial enterprises — larger than the GDP of most countries — a true "empire"
Because Buffett doesn't hold earnings calls or give guidance — a deliberate operating philosophy, not a disadvantage
Markets are waiting to see when Buffett deploys it — once the right target is found, that cash will create enormous value