A month has gone by since the last earnings report for Berkshire Hathaway B (BRK.B). Shares have lost about 3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Berkshire Hathaway B due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
BRK.B Q2 Earnings & Revenues Rise Year Over Year on Diversified Growth
Berkshire Hathaway delivered second-quarter 2026 operating earnings of $13 billion, which increased 16.3% year over year. The increase was due to higher earnings in BNSF; Berkshire Hathaway Energy Company; Manufacturing, service and retailing; and Other.
Behind the Headlines
Revenues rose 10% year over year to $101.8 billion due to an increase in revenues in Insurance and Other and Railroad, Utilities and Energy. The metric surpassed the consensus estimate by 6.8%.
Costs and expenses increased 8.4% year over year to $86 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 10.1% year over year to $88.5 billion in the reported quarter due to higher insurance premiums earned, sales and service revenues and leasing revenues.
Insurance underwriting produced operating earnings of $1.7 billion, which decreased 13.1% year over year.
Railroad operating revenues rose 14.6% year over year to $6.6 billion, primarily due to increases in car/unit volume of 6.5% in the second quarter as well as an average revenue per car/unit increase of 7.6% in the second quarter primarily from higher fuel surcharge revenues and higher yield. Pre-tax earnings increased 13.9% in the second quarter of 2026.
Operating earnings from the Railroad business increased 12.8% year over year to $2.3 billion.
Total revenues at Manufacturing, Service and Retailing increased 15.2% year over year to $61.5 billion. Pre-tax earnings increased 25.8% year over year to $5.8 billion.
In the second quarter of 2026, after-tax earnings from manufacturing, service and retailing businesses increased 24.1% year over year. Earnings increases in industrial products manufacturing and services businesses drove the increases.
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 June 30, 2026, consolidated shareholders’ equity was $750.2 billion, up 4.2% from the level as of Dec. 31, 2025. At the end of the quarter, cash and cash equivalents and restricted cash were $41.4 billion, down 59.1% year over year.
Berkshire exited the second quarter of 2026 with a float of about $177.5 billion, which grew $1.1 billion from Dec. 31, 2025.
Cash flow from operating activities totaled $21.7 billion in the first six months of 2026, up 3.2% from the year-ago period.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Berkshire Hathaway B has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Berkshire Hathaway B has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Berkshire Hathaway B belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, NMI Holdings (NMIH), has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
NMI Holdings reported revenues of $187.89 million in the last reported quarter, representing a year-over-year change of +8.1%. EPS of $1.38 for the same period compares with $1.22 a year ago.
NMI Holdings is expected to post earnings of $1.30 per share for the current quarter, representing a year-over-year change of +7.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.
NMI Holdings has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).