Berkshire Hathaway reported operating earnings of $12.98 billion for the second quarter, marking a 16% increase from $11.16 billion a year earlier, according to CNBC. Under CEO Greg Abel, who took over leadership at the start of the year, the conglomerate deployed capital into equity purchases and share buybacks, reducing its cash pile from $397.4 billion to $365.5 billion by the end of June.
Capital Deployment and Share Buybacks Under Greg Abel
According to CNBC, Berkshire Hathaway repurchased approximately $4.5 billion of its own shares during the second quarter. This marked a sharp acceleration from the $235 million spent on buybacks during the first three months of the year. The activity signaled a shift under Abel, who succeeded Warren Buffett as chief executive while Buffett remains chairman.
Alongside buybacks, Berkshire ended a 14 consecutive quarter streak of being a net seller of equities. The company made nearly $20 billion in net stock purchases during the quarter, closing its acquisition of Taylor Morrison and establishing a major stake in Alphabet. According to CNBC, Berkshire disclosed a $10 billion investment in Google’s parent company earlier in the year to help fund artificial intelligence development, placing Alphabet among its five largest equity holdings by market value at the end of June, alongside longtime holdings Apple, American Express, Bank of America, and Coca-Cola.
Segment Performance: Insurance Weakness Offset by Manufacturing and Energy
According to CNBC, operating profit growth was driven by strength across non-insurance units. Manufacturing, service, and retailing earnings jumped 24% to $4.47 billion. Berkshire Hathaway Energy posted a 27% surge in profit to $891 million, while railroad subsidiary BNSF recorded a 6% increase to $1.56 billion.
Insurance operations proved to be a weak spot for the conglomerate. According to CNBC, underwriting earnings fell 13% to $1.73 billion from $1.99 billion a year earlier, while insurance investment income declined 9% to $3.06 billion. Forbes reported that higher claims frequency and average severity at GEICO, alongside increased advertising and commission expenses, weighed on insurance underwriting growth for the period.
Insurance Float and Financial Position
According to Forbes, Berkshire’s insurance float rose to $177.5 billion, representing an increase of about $1.1 billion compared to the end of December 2025. Float per share reached $123,979, up from $122,373 at the close of the previous year. Despite a softening environment in the broader insurance industry, all three of Berkshire’s primary insurance units—GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group—posted profitable underwriting quarters, with GEICO reporting a combined ratio of 91.2% according to Forbes data.