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BRK.B Q3 Earnings Decline Year Over Year, Revenues Top Estimates

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Key Takeaways

  • BRK.B reported $12.7 billion in operating earnings, down 5.8%, despite revenue growth of 11.2%.
  • Insurance underwriting earnings dropped 42.9%, while railroad operating earnings climbed 15.6%.
  • Manufacturing, service and retailing revenues rose 17.8%, with pre-tax earnings increasing 12.8%.

Berkshire Hathaway Inc. (BRK.B - Free Report) delivered third-quarter 2026 operating earnings of $12.7 billion, which decreased 5.8% year over year. The decrease was due to lower earnings in underwriting, investment income and Other.

Berkshire Hathaway Inc. Price, Consensus and EPS Surprise

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 11.2% year over year to $105.6 billion due to an increase in revenues in Insurance and Other and Railroad, Utilities and Energy. The metric surpassed the consensus estimate by 8.6%.

Costs and expenses increased 15.5% year over year to $91.4 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 11.4% year over year to $91 billion in the reported quarter due to higher sales and service revenues and leasing revenues. 

Insurance underwriting produced operating earnings of $1.3 billion, which decreased 42.9% year over year.

After-tax earnings from insurance underwriting declined 42.9% in the reported quarter.

Railroad operating revenues increased 14.7% in the third quarter to $6.8 billion. Car/unit volumes increased 3.9% and 4.2% in the third quarter of 2026, relative to the same periods in 2025. Average revenue per car/unit increased 10.5% in the third quarter of 2026, primarily from higher fuel surcharge revenues and higher yield. Pre-tax earnings increased 18.5% in the third quarter of 2026.

Operating earnings from the Railroad business increased 15.6% year over year to $2.5 billion. 

Total revenues at Manufacturing, Service and Retailing increased 17.8% year over year to $64.4 billion. Pre-tax earnings increased 12.8% year over year to $5.3 billion.

In the third quarter of 2026, after-tax earnings from manufacturing, service and retailing businesses increased 11.8%. The increases were driven by earnings increases in industrial products and service businesses.

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 Sept. 30, 2026, consolidated shareholders’ equity was $761.3 billion, up 6.1% from the level as of Dec. 31, 2025. At the end of the quarter, cash and cash equivalents and restricted cash were $41.6 billion, down 46% year over year.

Berkshire exited the third quarter of 2026 with a float of about $178.5 billion, which grew $2.1 billion from Dec. 31, 2025.

Cash flow from operating activities totaled $33.9 billion in the first nine months of 2026, down 2.5% 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

Palomar Holdings, Inc. (PLMR - Free Report) reported third-quarter 2026 adjusted earnings of $3.01 per share, which increased 49.8% year over year. The bottom line beat the Zacks Consensus Estimate of $2.60 by 15.8%. Total revenues surged 58% year over year to $386.6 million, driven by higher net earned premiums and investment income. The top line surpassed the Zacks Consensus Estimate by 2.7%. 

Net earned premiums surged 62.3% year over year to $365.4 million. The Zacks Consensus Estimate was pegged at $351 million. The figure was higher than our estimate of $339.9 million. Net written premiums increased 41.2% to $388.6 million, while gross earned premiums climbed 41.9% to $736.1 million. Net investment income rose 53.8% year over year to $22.4 million. The Zacks Consensus Estimate was pegged at $20.52 million. The figure was higher than our estimate of $18.7 million. 

NMI Holdings, Inc. (NMIH - Free Report) reported third-quarter 2026 adjusted earnings of $1.23 per share, which rose 1.7% year over year. The bottom line missed the Zacks Consensus Estimate of $1.32 by 6.8%. Revenues rose 5% year over year to $187.6 million. The supplied Zacks data indicates a revenue miss of 5.3%, based on rounded reported revenues of $0.18 billion against the consensus mark of $0.19 billion.  Net premiums earned increased 2.7% year over year to $155.5 million. The Zacks Consensus Estimate was pegged at $160 million. The figure was lower than our estimate of $159.5 million.

Net investment income climbed 20.3% to $32.2 million, providing a meaningful lift to revenues. The Zacks Consensus Estimate was pegged at $29.24 million. The figure was higher than our estimate of $28.8 million. The company recorded net realized investment losses of $0.3 million compared with gains of $0.3 million a year earlier. 

Arch Capital Group Ltd. (ACGL - Free Report) reported third-quarter 2026 operating income of $2.67 per share, beating the Zacks Consensus Estimate by 24.2%. The bottom line declined 3.6% year over year. Operating revenues fell 5.2% year over year to $4.47 billion. Revenues beat the Zacks Consensus Estimate by 0.3%. Gross premiums written decreased 0.4% year over year to $5.39 billion.

Pre-tax net investment income increased 10.5% year over year to $451 million, reflecting growth in average investable assets. The figure was higher than our estimate of $432.2 million. Pre-tax current accident year catastrophic losses for the company’s Insurance and Reinsurance segments, net of reinsurance and reinstatement premiums, totaled $234 million.

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