Abel Boosts Buybacks, Reverses Stock Selling at Berkshire

Berkshire Hathaway's second quarter of 2026 saw operating earnings climb to $12.98 billion, a substantial improvement over the $11.16 billion reported in the same period of 2025. This growth was propelled by robust performance in its manufacturing, service, and retailing segments, which saw a 24% earnings increase. Berkshire Hathaway Energy also contributed significantly, with profits up 27%, and BNSF railroad operations added $1.56 billion.

Under the leadership of CEO Greg Abel, Berkshire Hathaway substantially increased its share repurchases, spending approximately $4.5 billion on buybacks during the quarter. This marks a significant shift from the $235 million spent in the first quarter of 2026. Furthermore, the company reversed a lengthy period of stock selling by making nearly $20 billion in net equity purchases.

Despite the aggressive deployment of capital, Berkshire's cash reserves stood at $365.5 billion as of June 30, 2026, down from a record $397.4 billion at the end of the prior quarter. The insurance sector experienced a weaker performance, with underwriting earnings dropping 13% and investment income decreasing by 9%.

Berkshire's top equity holdings now include Alphabet, which entered the top five positions alongside American Express, Apple, Bank of America, and Coca-Cola. The company noted that net earnings were boosted by significant investment gains, though these are not always indicative of core business performance. Berkshire shares have gained 3% year-to-date, trailing the S&P 500.