Berkshire Hathaway's Q4: Operating Earnings Down, Abel Takes Over

February 28, 2026

Berkshire Hathaway's Operating Earnings Down in Q4

Warren Buffett's final quarter as Berkshire Hathaway's (BRK.BBRK.A) CEO saw a significant decline in the conglomerate's operating earnings. Q4 earnings from operations totaled $10.2 billion, down over 29% from Q4 2024's $14.56 billion. The decline was driven by weakness in Berkshire's insurance business, with insurance underwriting profits dropping 54% to $1.56 billion. Insurance investment income also slid nearly 25% to $3.1 billion. Full-year 2025 operating earnings totaled $44.49 billion, down from $47.44 billion in 2024.

New CEO Greg Abel Vows to Continue Buffett's Culture

Newly appointed CEO Greg Abel took over from Buffett at the beginning of 2026. Abel pledged to uphold the culture of financial strength and capital discipline Buffett established. Buffett remains as chairman. In his first annual letter to shareholders, Abel highlighted Berkshire's impressive long-term performance, with compounded annual gains of 19.7% since 1965—almost double the S&P 500's gains over the same period.

Impairments Impact Overall Earnings

Berkshire's overall earnings, including gains or losses from stock market investments, fell slightly in Q4 to $19.2 billion. This figure was impacted by a $4.5 billion impairment from Berkshire's investments in Kraft Heinz and Occidental Petroleum. Investment gains for Q4 were $13.5 billion. For the full year, overall earnings fell to $66.97 billion, down from $89 billion in 2024. Berkshire has historically advised investors to pay little attention to the performance of its investments over short time frames, claiming that short-term fluctuations can be misleading.

No Buybacks, Cash Hoard Dips

Despite Buffett's reputation for strategic stock buybacks, he refrained from purchasing Berkshire shares in Q4, allowing the cash hoard to slip to $373.3 billion from a Q3 record of $381.6 billion. Buffett has admitted that finding companies worth buying is challenging, given Berkshire's size. Berkshire Hathaway Class A shares rose 10% in 2025, but still lagged behind the S&P 500's 16.4% advance.