# Berkshire Hathaway Inc. (BRK.B) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/BRK.B/thesis · /stocks/BRK.B/memo

## Financial Snapshot

---
ticker: BRK.B
step: 04
generated: 2026-05-11
source: quick-research
---

### Berkshire Hathaway Inc. — Class B (BRK.B) — Financial Snapshot

(Note: Berkshire's GAAP net income is dominated by unrealized investment gains/losses, which Buffett/Abel both caution should be ignored. "Operating earnings" is the management-preferred metric.)

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|
| Total Revenue | ~$364B | ~$371B | $371.4B |
| Operating Earnings (ex-investments) | $37.4B | $47.4B | $44.5B |
| Net Income (GAAP, incl. mark-to-market) | $96.2B | $89.0B | $67.0B |
| Insurance Underwriting Profit | $5.4B | $3.4B | $1.6B |
| Insurance Investment Income | $9.6B | $4.1B | $3.1B |
| Cash Flow from Operations | ~$49B | ~$45B | $46B |

#### Balance Sheet (Q1 2026)

| Metric | Value |
|--------|-------|
| Cash | $58B |
| US Treasury Bills (short-term) | $339B |
| **Total Liquid Assets** | **$397B** (record) |
| Insurance Float | $176B (+$5B YoY) |
| Equity Investment Portfolio (market value) | ~$280–300B |
| Total Assets | ~$1.15T |
| Shareholders' Equity (book value) | ~$650B |

#### Q1 2026 Snapshot

| Metric | Q1 2026 |
|--------|---------|
| Revenue | $93.7B |
| Net Income (GAAP) | $10.1B |
| Share Buybacks | $234M (first since May 2024 — 21-month gap) |

#### Key Ratios (approximate)
- P/B (Price-to-Book): ~1.65x | P/E (on operating earnings): ~24x
- Operating Earnings Yield: ~4%
- Cash + Treasuries / Market Cap: ~35% (essentially a third of Berkshire's value is currently liquid)
- Insurance Float / Equity: ~27%
- No dividend; capital return is via opportunistic buybacks

#### Growth Profile
Berkshire's structural growth has slowed in the late-Buffett / early-Abel transition. Operating earnings fell ~6% in 2025 driven by 54% decline in insurance underwriting profits (catastrophe losses + GEICO competitive pressure) and lower investment income on the equity portfolio. However, the **strategic posture is more important than near-term growth**: Berkshire has been a net seller of equities for 13+ consecutive quarters (Buffett era), accumulating ~$300B+ of cash, and Abel resumed share buybacks in March 2026 — the first since May 2024. The market is implicitly underwriting Abel to deploy the cash pile at a major drawdown or large acquisition.

#### Forward Estimates
Sell-side coverage is limited (no consensus earnings model published widely; Berkshire is followed by relatively few analysts). Implicit framing: operating earnings of ~$45–50B per year is the steady-state, with the **$397B cash position serving as embedded optionality** worth ~$80–120B of NPV depending on assumed deployment IRR (10–15% over 5 years). Bull case: Abel executes a $50–100B acquisition at distressed cycle valuations; bear case: cash continues to drag returns vs. equities, and Berkshire's relative outperformance vs. S&P 500 ends with the Buffett era.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/BRK.B/fundamental

## Navigation

- Overview: /stocks/BRK.B
- Financials (this page): /stocks/BRK.B/financials
- Thesis: /stocks/BRK.B/thesis
- Investment Memo: /stocks/BRK.B/memo
- Coverage universe: /stocks