Omaha, Feb 28 — Berkshire Hathaway earnings fell 29% in the fourth quarter to $10.2 billion as insurance underwriting profits dropped sharply, marking the final reporting period under Warren Buffett as chief executive officer. The decline reflected weaker performance in the conglomerate’s insurance businesses and lower investment income, according to company filings and confirmed financial disclosures.
The Omaha-based conglomerate reported operating earnings of $10.2 billion for the quarter, compared with $14.56 billion in the same period a year earlier. The company also did not announce any share buybacks during the quarter.
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insurance underwriting profit declines 54%
A major driver behind the drop in Berkshire Hathaway earnings was the sharp fall in insurance underwriting profit.
Insurance underwriting earnings declined 54% year over year to $1.56 billion, compared with $3.41 billion in the prior-year quarter. Investment income from the insurance segment also fell approximately 25% to $3.1 billion, down from $4.088 billion a year earlier.
Insurance operations are a core pillar of Berkshire Hathaway’s business model, generating float that the company invests across equities, bonds, and wholly owned subsidiaries. Fluctuations in underwriting profitability can significantly affect quarterly operating performance.
The latest quarterly results show that insurance pressures materially impacted overall operating earnings during the period.
final quarter under Warren Buffett as CEO
The fourth quarter marked Warren Buffett’s final full reporting period as chief executive officer before transitioning leadership responsibilities to Greg Abel.
Buffett, who led Berkshire Hathaway for decades, stepped down from the CEO role at the beginning of 2026. Greg Abel, previously vice chairman overseeing non-insurance operations, assumed the position of chief executive officer. Buffett continues to serve as chairman of the board.
In official shareholder communications accompanying the results, the company reiterated its long-standing capital allocation discipline and commitment to maintaining a strong balance sheet.
The leadership transition represents one of the most significant changes in Berkshire Hathaway’s corporate history, as Buffett had overseen the conglomerate’s transformation into one of the world’s largest publicly traded companies.
full year 2025 results show earnings contraction
For the full year 2025, Berkshire Hathaway earnings totaled $44.49 billion, compared with $47.44 billion in 2024.
Insurance underwriting profit for the year declined to $7.26 billion from $9 billion in the previous year. Insurance investment income also eased to $12.5 billion from $13.6 billion in 2024.
The annual results reflect broader insurance market conditions and fluctuations in investment performance across the company’s extensive portfolio. Berkshire’s diversified operations include insurance, railroad operator BNSF Railway, utility businesses, manufacturing, retail, and service subsidiaries.
Operating earnings are closely monitored by investors because they exclude volatile gains and losses from investments and derivatives, providing a clearer measure of underlying business performance.
no share buybacks announced
Berkshire Hathaway did not repurchase shares during the fourth quarter.
The absence of share buybacks continues a pause in capital returns through repurchases, even as the company maintains one of the largest cash reserves among publicly listed corporations.
At the end of the fourth quarter, cash and cash equivalents stood at $373.3 billion, slightly lower than the record $381.6 billion reported in the prior quarter.
The company has historically deployed excess cash through acquisitions, stock investments, and opportunistic buybacks when management determined that shares were trading below intrinsic value.
market reaction and stock performance
Following the earnings release, Berkshire Hathaway Class A and Class B shares showed limited immediate volatility in trading.
For the 2025 calendar year, Berkshire Hathaway Class A shares gained roughly 10%, compared with approximately 16% for the broader S&P 500 Index during the same period.
The earnings decline and CEO transition were key focal points for market participants reviewing the quarterly report.
Berkshire Hathaway is listed on the New York Stock Exchange and reports financial results in accordance with United States Generally Accepted Accounting Principles. Regulatory filings are submitted to the United States Securities and Exchange Commission.
background on operating earnings metric
Berkshire Hathaway earnings are often reported in two primary forms: net earnings under generally accepted accounting principles and operating earnings.
Operating earnings exclude unrealized gains and losses from equity investments, which can create substantial quarterly volatility due to accounting rules. As a result, operating earnings are widely regarded as a more consistent measure of the company’s core business profitability.
In the fourth quarter, declines in underwriting profit and insurance investment income were the primary factors driving the contraction in operating earnings compared with the same period last year.
The insurance segment remains central to Berkshire’s structure, as the float generated by insurance premiums provides investable capital that has historically funded acquisitions and equity investments.
confirmed quarterly figures
• operating earnings: $10.2 billion, down 29% year over year
• insurance underwriting profit: $1.56 billion, down 54% year over year
• insurance investment income: $3.1 billion, down about 25%
• full year operating earnings: $44.49 billion versus $47.44 billion in 2024
• no share buybacks in the quarter
• cash position: $373.3 billion at quarter end
The quarterly release and shareholder letter were issued through official company filings and regulatory disclosures.