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Berkshire to Report Q3 Earnings: Time to Buy, Hold or Sell the Stock?
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Key Takeaways
Berkshire Hathaway's Q3 revenues are expected to rise 2.5% to $97.3B, while EPS may fall 5.6% to $5.91.
Favorable insurance pricing, higher investment income & improved railroad operations may support Q3 results.
Berkshire's $370B-plus cash holdings, diversified businesses and attractive valuation strengthen its case.
Berkshire Hathaway (BRK.B - Free Report) is expected to witness an improvement in its top line but a decline in its bottom line when it reports third-quarter 2026 results.
The Zacks Consensus Estimate for BRK.B’s third-quarter revenues is pegged at $97.3 billion, indicating a 2.5% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $5.91 per share. The Zacks Consensus Estimate for BRK.B’s third-quarter earnings has moved 4.4% north in the past 30 days. The estimate suggests a year-over-year decrease of 5.6%.
Image Source: Zacks Investment Research
BRK.B’s Decent Earnings Surprise History
Berkshire Hathaway’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average surprise being 12.04%.
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 -0.59%. This is because the Most Accurate Estimate of $5.87 is pegged lower than the Zacks Consensus Estimate of $5.91.
Berkshire Hathaway’s insurance operations are expected to have benefited from favorable pricing, strong policy retention, higher average auto premiums, broader market exposure and favorable reserve development in the third quarter. Soft performance at GEICO is likely to have been offset by improved contributions from reinsurance and other primary insurance operations.
Insurance investment income may also have increased, supported by higher yields and a larger asset base.
Higher freight volumes and operating efficiencies are likely to have supported BNSF's earnings. Increased shipping volumes and improved productivity are likely to have been weighed down by increased fuel costs, wage inflation and other operating expenses.
Higher earnings from regulated utilities and natural gas pipeline operations may have supported Berkshire Hathaway Energy's third-quarter performance. Solid demand for aerospace components, industrial gas turbines and specialty chemicals is likely to have benefited Berkshire's manufacturing operations.
Share buybacks are likely to have supported the bottom line.
BRK.B’s Price Performance & Valuation
The stock has outperformed the industry and its sector but underperformed the S&P 500 in the third quarter of 2026.
Image Source: Zacks Investment Research
The stock is trading at a price-to-book value of 1.57X, slightly higher than the industry.
Image Source: Zacks Investment Research
It is attractively valued compared with other insurers like The Progressive Corporation (PGR - Free Report) and The Allstate Corporation (ALL - Free Report) .
Investment Thesis
Berkshire Hathaway’s diversified portfolio of more than 90 businesses across insurance, energy, railroads, manufacturing, retail and consumer products reduces industry-specific risks and supports earnings resilience across economic cycles.
Insurance, accounting for roughly one-fourth of total revenues, remains a key growth driver. Disciplined underwriting, premium growth and favorable pricing bolster performance, while substantial insurance float provides low-cost capital for investments and acquisitions, enhancing financial flexibility and long-term value creation.
The company continues to diversify its investment portfolio by increasing exposure to Japanese trading houses and airline-related businesses while trimming selected payment-company holdings. Its planned $6.8 billion acquisition of Taylor Morrison Home Corp. further strengthens its presence in the U.S. housing market, reflecting confidence in the sector’s long-term prospects.
Berkshire Hathaway’s robust financial position, supported by more than $370 billion in cash and U.S. Treasury holdings, conservative leverage and a strong balance sheet, provides ample capacity for strategic acquisitions, opportunistic investments and navigating economic uncertainties.
How to Play BRK.B Stock
Berkshire Hathaway has been a cornerstone of investor portfolios for decades, generating steady shareholder value under Warren Buffett’s nearly 60-year leadership. The spotlight has now shifted to the next chapter, with Greg Abel becoming CEO on Jan. 1, 2026, and Buffett leaving leadership altogether and remaining chairman emeritus.
Stocks like Berkshire Hathaway warrant a premium. Price appreciation, optimistic analysts' sentiments and growth estimates instill confidence in the stock. Investors can add the stock to their portfolio to have a feeling of dynamism.
View the Zacks #1 Rank List
Image: Bigstock
Berkshire to Report Q3 Earnings: Time to Buy, Hold or Sell the Stock?
Key Takeaways
Berkshire Hathaway (BRK.B - Free Report) is expected to witness an improvement in its top line but a decline in its bottom line when it reports third-quarter 2026 results.
The Zacks Consensus Estimate for BRK.B’s third-quarter revenues is pegged at $97.3 billion, indicating a 2.5% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $5.91 per share. The Zacks Consensus Estimate for BRK.B’s third-quarter earnings has moved 4.4% north in the past 30 days. The estimate suggests a year-over-year decrease of 5.6%.
Image Source: Zacks Investment Research
BRK.B’s Decent Earnings Surprise History
Berkshire Hathaway’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average surprise being 12.04%.
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 -0.59%. This is because the Most Accurate Estimate of $5.87 is pegged lower than the Zacks Consensus Estimate of $5.91.
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 #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape BRK.B’s Q3 Results
Berkshire Hathaway’s insurance operations are expected to have benefited from favorable pricing, strong policy retention, higher average auto premiums, broader market exposure and favorable reserve development in the third quarter. Soft performance at GEICO is likely to have been offset by improved contributions from reinsurance and other primary insurance operations.
Insurance investment income may also have increased, supported by higher yields and a larger asset base.
Higher freight volumes and operating efficiencies are likely to have supported BNSF's earnings. Increased shipping volumes and improved productivity are likely to have been weighed down by increased fuel costs, wage inflation and other operating expenses.
Higher earnings from regulated utilities and natural gas pipeline operations may have supported Berkshire Hathaway Energy's third-quarter performance. Solid demand for aerospace components, industrial gas turbines and specialty chemicals is likely to have benefited Berkshire's manufacturing operations.
Share buybacks are likely to have supported the bottom line.
BRK.B’s Price Performance & Valuation
The stock has outperformed the industry and its sector but underperformed the S&P 500 in the third quarter of 2026.
Image Source: Zacks Investment Research
The stock is trading at a price-to-book value of 1.57X, slightly higher than the industry.
Image Source: Zacks Investment Research
It is attractively valued compared with other insurers like The Progressive Corporation (PGR - Free Report) and The Allstate Corporation (ALL - Free Report) .
Investment Thesis
Berkshire Hathaway’s diversified portfolio of more than 90 businesses across insurance, energy, railroads, manufacturing, retail and consumer products reduces industry-specific risks and supports earnings resilience across economic cycles.
Insurance, accounting for roughly one-fourth of total revenues, remains a key growth driver. Disciplined underwriting, premium growth and favorable pricing bolster performance, while substantial insurance float provides low-cost capital for investments and acquisitions, enhancing financial flexibility and long-term value creation.
The company continues to diversify its investment portfolio by increasing exposure to Japanese trading houses and airline-related businesses while trimming selected payment-company holdings. Its planned $6.8 billion acquisition of Taylor Morrison Home Corp. further strengthens its presence in the U.S. housing market, reflecting confidence in the sector’s long-term prospects.
Berkshire Hathaway’s robust financial position, supported by more than $370 billion in cash and U.S. Treasury holdings, conservative leverage and a strong balance sheet, provides ample capacity for strategic acquisitions, opportunistic investments and navigating economic uncertainties.
How to Play BRK.B Stock
Berkshire Hathaway has been a cornerstone of investor portfolios for decades, generating steady shareholder value under Warren Buffett’s nearly 60-year leadership. The spotlight has now shifted to the next chapter, with Greg Abel becoming CEO on Jan. 1, 2026, and Buffett leaving leadership altogether and remaining chairman emeritus.
Stocks like Berkshire Hathaway warrant a premium. Price appreciation, optimistic analysts' sentiments and growth estimates instill confidence in the stock. Investors can add the stock to their portfolio to have a feeling of dynamism.