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BRK.B Q2 Earnings & Revenues Rise Year Over Year on Diversified Growth
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Key Takeaways
Berkshire Hathaway's operating earnings rose 16.3% to $12.9 billion, driven by broad-based segment gains.
BNSF operating earnings increased 12.7%, helped by higher car volumes and revenue per car or unit.
Manufacturing, service and retailing earnings rose 24.1%, led by industrial products and services.
Berkshire Hathaway Inc. (BRK.B - Free Report) delivered second-quarter 2026 operating earnings of $12.9 billion, which increased 16.3% year over year. The increase was due to higher earnings in BNSF, Berkshire Hathaway Energy Company, Manufacturing, service and retailing, and Other.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Revenues rose 10% year over year to $101.8 billion due to an increase in revenues in Insurance and Other and Railroad, Utilities, and Energy. The metric surpassed the consensus estimate by 6.8%.
Costs and expenses increased 8.4% year over year to $86 billion, largely driven by increases in Insurance and Other and in Railroad, Utilities, and Energy.
Segment Performance
Berkshire’s Insurance and Other segment revenues increased 10.1% year over year to $88.5 billion in the reported quarter due to higher Insurance premiums earned, Sales and service revenues, and Leasing revenues.
Insurance underwriting produced operating earnings of $1.7 billion, which decreased 13.1% year over year.
Railroad operating revenues rose 14.6% year over year to $5.9 billion, primarily due to increases in Car/unit volume of 6.5% in the second quarter. Average revenue per car/unit increased 7.6% in the second quarter primarily from higher fuel surcharge revenues and higher yield. Pre-tax earnings increased 13.9% in the second quarter of 2026.
Operating earnings from the Railroad business increased 12.7% year over year to $2.2 billion.
Total revenues at Manufacturing, Service and Retailing increased 15.2% year over year to $61.5 billion. Pre-tax earnings increased 25.8% year over year to $5.8 billion.
In the second quarter of 2026, after-tax earnings from manufacturing, service and retailing businesses increased 24.1% year over year. Earnings increases in industrial products manufacturing and services businesses drove the increases.
Results among the numerous operations in the quarter improved, with overall earnings increases in the manufacturing and service businesses and in the retailing businesses.
Financial Position
As of June 30, 2026, consolidated shareholders’ equity was $750.2 billion, up 4.2% from the level as of Dec. 31, 2025. At the end of the quarter, cash and cash equivalents and restricted cash were $41.3 billion, down 59.1% year over year.
Berkshire exited the second quarter of 2026 with a float of about $177.5 billion, which grew $1.1 billion from Dec. 31, 2025.
Cash flow from operating activities totaled $21.6 billion in the first six months of 2026, up 3.2% from the year-ago period.
Performance of Other Property and Casualty Insurers
CNA Financial Corporation (CNA - Free Report) reported second-quarter 2026 core earnings of $1.19 per share, which beat the Zacks Consensus Estimate of $1.04 by 14.4%. The bottom line decreased 3.3% year over year. Revenues rose 3% year over year to $3.46 billion and surpassed the consensus estimate of $3.34 billion by 3.6%.
Property & Casualty net written premiums increased 4% year over year to $2.97 billion. Net earned premiums rose 3% to $2.66 billion, aided by 11% new business growth to a record $718 million and a 2% renewal premium change. Retention remained 83%, while the rate change was flat. Management noted that rate increases in casualty lines affected by social inflation and in Specialty offset property declines, workers’ compensation and International.
Arch Capital Group Ltd. (ACGL - Free Report) reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year. Revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. Results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income.
Gross premiums written declined 1.1% year over year to $6.13 billion. Net premiums written decreased 6.9% to $4.05 billion, reflecting lower volumes in the Insurance and Reinsurance segments. Net premiums earned fell 8.1% to $3.99 billion. Underwriting income fell 19.7% to $657 million. The combined ratio, which measures claims and expenses as a percentage of premiums, deteriorated 230 basis points to 83.5%.
Selective Insurance Group, Inc. (SIGI - Free Report) reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
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BRK.B Q2 Earnings & Revenues Rise Year Over Year on Diversified Growth
Key Takeaways
Berkshire Hathaway Inc. (BRK.B - Free Report) delivered second-quarter 2026 operating earnings of $12.9 billion, which increased 16.3% year over year. The increase was due to higher earnings in BNSF, Berkshire Hathaway Energy Company, Manufacturing, service and retailing, and Other.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Berkshire Hathaway Inc. price-consensus-eps-surprise-chart | Berkshire Hathaway Inc. Quote
Behind the Headlines
Revenues rose 10% year over year to $101.8 billion due to an increase in revenues in Insurance and Other and Railroad, Utilities, and Energy. The metric surpassed the consensus estimate by 6.8%.
Costs and expenses increased 8.4% year over year to $86 billion, largely driven by increases in Insurance and Other and in Railroad, Utilities, and Energy.
Segment Performance
Berkshire’s Insurance and Other segment revenues increased 10.1% year over year to $88.5 billion in the reported quarter due to higher Insurance premiums earned, Sales and service revenues, and Leasing revenues.
Insurance underwriting produced operating earnings of $1.7 billion, which decreased 13.1% year over year.
Railroad operating revenues rose 14.6% year over year to $5.9 billion, primarily due to increases in Car/unit volume of 6.5% in the second quarter. Average revenue per car/unit increased 7.6% in the second quarter primarily from higher fuel surcharge revenues and higher yield. Pre-tax earnings increased 13.9% in the second quarter of 2026.
Operating earnings from the Railroad business increased 12.7% year over year to $2.2 billion.
Total revenues at Manufacturing, Service and Retailing increased 15.2% year over year to $61.5 billion. Pre-tax earnings increased 25.8% year over year to $5.8 billion.
In the second quarter of 2026, after-tax earnings from manufacturing, service and retailing businesses increased 24.1% year over year. Earnings increases in industrial products manufacturing and services businesses drove the increases.
Results among the numerous operations in the quarter improved, with overall earnings increases in the manufacturing and service businesses and in the retailing businesses.
Financial Position
As of June 30, 2026, consolidated shareholders’ equity was $750.2 billion, up 4.2% from the level as of Dec. 31, 2025. At the end of the quarter, cash and cash equivalents and restricted cash were $41.3 billion, down 59.1% year over year.
Berkshire exited the second quarter of 2026 with a float of about $177.5 billion, which grew $1.1 billion from Dec. 31, 2025.
Cash flow from operating activities totaled $21.6 billion in the first six months of 2026, up 3.2% from the year-ago period.
Zacks Rank
Berkshire Hathaway currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Property and Casualty Insurers
CNA Financial Corporation (CNA - Free Report) reported second-quarter 2026 core earnings of $1.19 per share, which beat the Zacks Consensus Estimate of $1.04 by 14.4%. The bottom line decreased 3.3% year over year. Revenues rose 3% year over year to $3.46 billion and surpassed the consensus estimate of $3.34 billion by 3.6%.
Property & Casualty net written premiums increased 4% year over year to $2.97 billion. Net earned premiums rose 3% to $2.66 billion, aided by 11% new business growth to a record $718 million and a 2% renewal premium change. Retention remained 83%, while the rate change was flat. Management noted that rate increases in casualty lines affected by social inflation and in Specialty offset property declines, workers’ compensation and International.
Arch Capital Group Ltd. (ACGL - Free Report) reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year. Revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. Results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income.
Gross premiums written declined 1.1% year over year to $6.13 billion. Net premiums written decreased 6.9% to $4.05 billion, reflecting lower volumes in the Insurance and Reinsurance segments. Net premiums earned fell 8.1% to $3.99 billion. Underwriting income fell 19.7% to $657 million. The combined ratio, which measures claims and expenses as a percentage of premiums, deteriorated 230 basis points to 83.5%.
Selective Insurance Group, Inc. (SIGI - Free Report) reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.