Berkshire Hathaway Profits Surge 17% as Buffett Poises for CEO Exit/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Berkshire Hathaway posted a 17% rise in profits, supported by strong insurance earnings and investment gains. As Warren Buffett prepares to step down as CEO in January, investors are watching successor Greg Abel closely. Despite record cash reserves, Berkshire continues its cautious investment approach, avoiding stock buybacks even amid stock dips.
Berkshire Hathaway Profits and Transition Quick Looks
- Berkshire Hathaway reports $30.8B in quarterly profit, up 17%
- Operating earnings rose to $13.5B on stronger insurance results
- Mild hurricane season and foreign currency gains helped earnings
- Buffett to step down as CEO in January, remain chairman
- Greg Abel set to become CEO amid calls for more transparency
- Berkshire stock dips from record high, no share buybacks reported
- $381.7B in cash reserves remains largely untouched
- Analysts expect pressure to increase for dividend payments
- Utilities unit saw 9% decline, most segments performed well
Deep Look
Berkshire Hathaway Sees 17% Profit Growth as Buffett Readies for CEO Exit
Berkshire Hathaway delivered a strong third quarter, reporting a 17% increase in profits as legendary investor Warren Buffett prepares to step down as CEO in January 2026. The results highlight the strength of the conglomerate’s core businesses and investments, even as leadership prepares to transition to Vice Chair Greg Abel.
The company announced Saturday that it earned $30.8 billion, or $21,413 per Class A share, up from $26.3 billion, or $18,272 per share, during the same period last year. That growth was driven largely by gains in its investment portfolio, along with a rebound in insurance underwriting profits.
Operating Performance Outshines Market Forecasts
Berkshire’s operating profit—a figure Buffett often urges investors to focus on over headline earnings—rose to $13.5 billion from $10.1 billion a year earlier. That translates to $9,376.15 per Class A share, well above analysts’ expectations of $8,573.50, according to FactSet.
The company’s insurance division led the surge. Fewer catastrophic events this year, especially compared to the costly impact of Hurricane Helene in 2024, allowed Berkshire’s insurance underwriting profit to soar by $1.6 billion, reaching $2.37 billion.
In addition, Berkshire recorded a $331 million gain on foreign currency-related debt holdings, a stark contrast to the $1.1 billion loss on the same category last year.
Despite the sharp growth, the conglomerate’s utilities division saw a nearly 9% decline, with earnings dropping to $1.49 billion.
Cash Reserves Still Towering
Berkshire’s famously conservative approach to spending remains unchanged. Even with its largest deal in years—a $9.7 billion investment in OxyChem last month—the company’s cash pile remains massive at $381.7 billion.
The investment, while notable, barely dented the cash reserves, prompting renewed calls from analysts for Berkshire to consider returning more capital to shareholders—especially if more sizable deals aren’t forthcoming.
Notably, Berkshire did not repurchase any of its own stock during the quarter, despite the stock dipping from its record high of $812,855 to $715,740. That restraint suggests Buffett still views the shares as overvalued, despite investor expectations that buybacks might return.
Leadership Transition Looms
As Warren Buffett prepares to relinquish the CEO title, attention is turning to Greg Abel, who has long been positioned as his successor. Abel, currently Vice Chair overseeing non-insurance operations, is slated to become CEO in January, though Buffett will remain chairman of the board.
While markets are relatively confident in Abel’s abilities, analysts say his leadership will bring new pressures.
“The lack of discussion and disclosure — I think has a lot of the investment community frustrated,” said Cathy Seifert, an analyst with CFRA Research.
Buffett has famously resisted quarterly earnings calls, investor relations departments, or regular public statements—choosing instead to release results on Saturdays to allow investors time to absorb the information over the weekend. Whether Abel maintains that approach or modernizes Berkshire’s communication strategy remains to be seen.
Seifert and others also expect increasing demands for dividend payouts if the company continues stockpiling cash without identifying major acquisition opportunities.
“If Berkshire can’t deploy this cash meaningfully, pressure to return it to shareholders will only grow,” Seifert added.
A Careful Hand Off in Omaha
Buffett’s departure as CEO marks the end of an era. At 95 years old, the “Oracle of Omaha” has led Berkshire for over half a century, transforming it into one of the world’s most valuable and diversified holding companies—with assets spanning insurance, railroads, energy, consumer goods, and more.
Yet even as change looms, Berkshire’s latest results show the company remains in robust financial health, anchored by disciplined strategy and conservative risk management.
The road ahead will test Greg Abel’s leadership style, and whether he can balance innovation with the steady, value-driven approach Buffett perfected. For now, investors can rest assured that, financially, Berkshire remains as strong as ever.
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