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Here's How to Play Berkshire Hathaway Stock Before Q1 Earnings
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Key Takeaways
BRK.B is expected to post Q1 2026 revenues of $95.1B, up 6% from a year ago.
Berkshire Hathaway's insurance arm may gain from pricing, retention and favorable reserves. GEICO trends help.
BRK.B faces BNSF mix/fuel-surcharge headwinds, while utilities/energy strength and buybacks may help.
Berkshire Hathaway (BRK.B - Free Report) is expected to witness an improvement in its top and bottom lines when it reports first-quarter 2026 results.
The Zacks Consensus Estimate for BRK.B’s first-quarter revenues is pegged at $95.1 billion, indicating a 6% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $4.82 per share. The Zacks Consensus Estimate for BRK.B’s first-quarter earnings witnessed no movement in the past 30 days. The estimate suggests a year-over-year decrease of 7.8%.
Image Source: Zacks Investment Research
BRK.B’s Earnings Surprise History
Berkshire Hathaway’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in the remaining three, the average surprise being 3.98%.
What the Zacks Model Unveils for Berkshire Hathaway
Our proven model does not conclusively predict an earnings beat for Berkshire this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: BRK.B has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $4.82.
Berkshire Hathaway’s insurance operations are likely to have benefited in the to-be-reported quarter from improved pricing, strong policy retention, higher average auto premiums, broader market exposure and favorable reserve developments. A not-so-active catastrophe environment probably supported underwriting profitability. Ongoing growth in the insurance segment is also expected to have contributed to an increase in the company’s float.
GEICO, Berkshire’s private passenger auto insurer, is likely to have benefited from an increase in policies in force, higher average premiums per policy, lower claims frequency and improved operating efficiencies.
Investment income is likely to have risen as well, driven by higher yields and a larger investment asset base.
At BNSF, the railroad subsidiary, results might be weighed down by an unfavorable business mix and lower fuel surcharge revenues. However, earnings are likely to have been supported by higher unit volumes, improved workforce productivity and reduced operating expenses.
The utilities and energy segment is expected to have delivered a strong performance, fueled by increased contributions from natural gas pipelines and other energy-related operations.
Meanwhile, the Service and Retail divisions are likely to have benefited from a strengthening economic backdrop, with rising consumer activity supporting revenue growth and margin expansion.
Share buybacks are likely to have supported the bottom line.
BRK.B’s Price Performance & Valuation
The stock has underperformed the industry, but outperformed its sector and the S&P 500 in the first quarter of 2026.
Image Source: Zacks Investment Research
The stock is trading at a price-to-book value of 1.43X, higher than the industry’s 1.41X. It is attractively valued compared with other insurers like The Progressive Corporation (PGR - Free Report) and The Allstate Corporation (ALL - Free Report) .
Image Source: Zacks Investment Research
Investment Thesis
Berkshire Hathaway’s insurance operations are central to its business model, contributing about a quarter of total revenues and driving long-term growth. Although this segment is a key source of return on equity, it remains exposed to catastrophe-related losses, which can create fluctuations in underwriting performance. However, Berkshire’s diversified portfolio helps maintain overall stability.
Growth in the insurance segment has significantly expanded its float—the premiums collected before claims are paid—from roughly $114 billion in 2017 to about $176 billion by the end of 2025. This float serves as a low-cost funding source, enabling Berkshire to invest in high-quality assets with strong and consistent returns, including stakes in companies like Apple, Coca-Cola, BNSF Railway, and utility businesses.
Its strong financial position also supports ongoing share repurchases, reinforcing an effective capital allocation strategy and enhancing long-term shareholder value.
How to Play BRK.B Stock
Berkshire Hathaway, a conglomerate with over 90 subsidiaries spanning a wide range of industries, brings diversification and dynamism to shareholders’ portfolios. The spotlight now shifts to the next chapter, with Greg Abel as CEO.
Berkshire’s insurance business is likely to benefit from solid results at GEICO as well as higher interest income from short-term investments.
However, given price erosion, an unfavorable return on capital, write-downs in some investments, lowered times interest earned, near-term earnings pressure and contracting margins, investors should shy away from BRK.B stock presently.
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Here's How to Play Berkshire Hathaway Stock Before Q1 Earnings
Key Takeaways
Berkshire Hathaway (BRK.B - Free Report) is expected to witness an improvement in its top and bottom lines when it reports first-quarter 2026 results.
The Zacks Consensus Estimate for BRK.B’s first-quarter revenues is pegged at $95.1 billion, indicating a 6% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $4.82 per share. The Zacks Consensus Estimate for BRK.B’s first-quarter earnings witnessed no movement in the past 30 days. The estimate suggests a year-over-year decrease of 7.8%.
Image Source: Zacks Investment Research
BRK.B’s Earnings Surprise History
Berkshire Hathaway’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in the remaining three, the average surprise being 3.98%.
What the Zacks Model Unveils for Berkshire Hathaway
Our proven model does not conclusively predict an earnings beat for Berkshire this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: BRK.B has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $4.82.
Berkshire Hathaway Inc. Price and EPS Surprise
Berkshire Hathaway Inc. price-eps-surprise | Berkshire Hathaway Inc. Quote
Zacks Rank: BRK.B currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape BRK.B’s Q1 Results
Berkshire Hathaway’s insurance operations are likely to have benefited in the to-be-reported quarter from improved pricing, strong policy retention, higher average auto premiums, broader market exposure and favorable reserve developments. A not-so-active catastrophe environment probably supported underwriting profitability. Ongoing growth in the insurance segment is also expected to have contributed to an increase in the company’s float.
GEICO, Berkshire’s private passenger auto insurer, is likely to have benefited from an increase in policies in force, higher average premiums per policy, lower claims frequency and improved operating efficiencies.
Investment income is likely to have risen as well, driven by higher yields and a larger investment asset base.
At BNSF, the railroad subsidiary, results might be weighed down by an unfavorable business mix and lower fuel surcharge revenues. However, earnings are likely to have been supported by higher unit volumes, improved workforce productivity and reduced operating expenses.
The utilities and energy segment is expected to have delivered a strong performance, fueled by increased contributions from natural gas pipelines and other energy-related operations.
Meanwhile, the Service and Retail divisions are likely to have benefited from a strengthening economic backdrop, with rising consumer activity supporting revenue growth and margin expansion.
Share buybacks are likely to have supported the bottom line.
BRK.B’s Price Performance & Valuation
The stock has underperformed the industry, but outperformed its sector and the S&P 500 in the first quarter of 2026.
Image Source: Zacks Investment Research
The stock is trading at a price-to-book value of 1.43X, higher than the industry’s 1.41X. It is attractively valued compared with other insurers like The Progressive Corporation (PGR - Free Report) and The Allstate Corporation (ALL - Free Report) .
Image Source: Zacks Investment Research
Investment Thesis
Berkshire Hathaway’s insurance operations are central to its business model, contributing about a quarter of total revenues and driving long-term growth. Although this segment is a key source of return on equity, it remains exposed to catastrophe-related losses, which can create fluctuations in underwriting performance. However, Berkshire’s diversified portfolio helps maintain overall stability.
Growth in the insurance segment has significantly expanded its float—the premiums collected before claims are paid—from roughly $114 billion in 2017 to about $176 billion by the end of 2025. This float serves as a low-cost funding source, enabling Berkshire to invest in high-quality assets with strong and consistent returns, including stakes in companies like Apple, Coca-Cola, BNSF Railway, and utility businesses.
Its strong financial position also supports ongoing share repurchases, reinforcing an effective capital allocation strategy and enhancing long-term shareholder value.
How to Play BRK.B Stock
Berkshire Hathaway, a conglomerate with over 90 subsidiaries spanning a wide range of industries, brings diversification and dynamism to shareholders’ portfolios. The spotlight now shifts to the next chapter, with Greg Abel as CEO.
Berkshire’s insurance business is likely to benefit from solid results at GEICO as well as higher interest income from short-term investments.
However, given price erosion, an unfavorable return on capital, write-downs in some investments, lowered times interest earned, near-term earnings pressure and contracting margins, investors should shy away from BRK.B stock presently.