Berkshire Hathaway has released its first quarterly report under CEO Greg Abel, following the long and impactful tenure of Warren Buffett. This report reveals both the strengths and challenges faced by the company in its ongoing evolution.
Key financial highlights:
- Berkshire Hathaway reported $11.35 billion in operating earnings for the first quarter, marking an 18% increase from last year.
- The company’s cash pile grew to over $397 billion.
- Net income attributable to shareholders surged to approximately $10.1 billion, more than doubling from $4.6 billion last year.
- Berkshire earned $1.7 billion from insurance underwriting, a notable 28% increase compared to the same period last year.
- However, Geico experienced a 34% drop in earnings despite the overall increase in insurance underwriting.
This moment is pivotal as it signifies a shift in leadership—Greg Abel officially took over as CEO on January 1, 2026. Warren Buffett, who led Berkshire for six decades, remains actively involved; he attended the recent annual meeting and praised Abel’s performance. Buffett stated, “Greg is doing everything I did and then some, and he’s doing it better in all cases. He’s the right person.” His confidence in Abel provides reassurance to investors during this transition.
That context matters because Berkshire’s largest holding is in Apple, which recently reported better-than-expected earnings with iPhone sales up 22% compared to last year. This connection underscores how external factors influence Berkshire’s overall performance.
Looking forward, while Berkshire Hathaway shows robust growth in certain areas, uncertainties persist—especially regarding Geico’s declining earnings despite positive trends elsewhere. Investors are keenly observing how Abel will navigate these complexities moving forward.
