Berkshire Hathaway Inc. Q1 2026 Filing Summary
Business Context and Reporting Period
This summary covers the Form 10-Q for Berkshire Hathaway Inc. for the quarterly period ended March 31, 2026. The company operates a diversified portfolio including insurance (GEICO, BH Primary, BHRG), railroad (BNSF), utilities and energy (BHE), and various manufacturing, service, and retailing businesses. The filing reflects a strong liquidity position with significant cash and Treasury holdings.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenues | $93.7 billion | $89.7 billion |
| Net Earnings (Attributable to Berkshire) | $10.1 billion | $4.6 billion |
| Operating Cash Flow | $10.4 billion | $10.9 billion |
| Investment Gains (Losses) | ($1.6 billion) | ($6.4 billion) |
| Cash & Equivalents (Insurance & Other) | $51.5 billion | $47.7 billion |
| Short-term U.S. Treasury Bills | $339.3 billion | $321.4 billion |
| Total Shareholders' Equity | $729.5 billion | $719.7 billion |
| Debt (Excluding BNSF/BHE) | $42.8 billion | $45.8 billion |
Material Changes vs. Prior Period
- Net Earnings Surge: Net earnings attributable to Berkshire shareholders more than doubled to $10.1 billion from $4.6 billion, driven by improved operating results and a significant reduction in investment losses.
- Investment Performance: Pre-tax investment losses narrowed to $1.6 billion from $6.4 billion. This was due to a smaller unrealized loss on equity securities held at period-end ($3.3 billion vs. $6.8 billion) and higher realized gains on securities sold ($1.7 billion vs. $0.4 billion).
- Insurance Underwriting: Pre-tax underwriting earnings increased to $2.3 billion from $1.7 billion. GEICO earnings declined due to higher loss ratios (73.9% vs. 69.0%), while BH Primary and BHRG improved significantly due to lower catastrophe losses and favorable prior-year reserve developments.
- Acquisition Activity: On January 2, 2026, Berkshire acquired Occidental Petroleum's chemicals business (OxyChem) for approximately $9.5 billion. OxyChem contributed $1.2 billion in revenue but a small pre-tax loss in Q1 2026.
- Segment Highlights:
- BNSF: Earnings rose 13.4% to $1.4 billion, aided by higher volumes in agricultural/energy products and improved operating ratios.
- BHE: Earnings increased slightly (1.5%) to $1.1 billion, with natural gas pipelines offsetting declines in U.S. utilities.
- Manufacturing: Earnings grew 12.6% to $3.1 billion, driven by industrial products (including OxyChem) and consumer products.
Outlook, Risks, and Contingencies
- Legal Contingencies (Wildfires): PacifiCorp (BHE subsidiary) faces ongoing litigation regarding 2020 and 2022 wildfires. As of March 31, 2026, cumulative estimated probable losses were $2.9 billion, with $577 million in unpaid liabilities. A significant development occurred in April 2026 when the Oregon Court of Appeals reversed a Phase I liability verdict in the "James" class action, potentially reducing future bonding requirements and liability exposure.
- Legal Contingencies (Real Estate): HomeServices of America is defending antitrust cases regarding real estate commissions. A $250 million settlement in the "Burnett" case is pending appeal.
- Market Risks: Management notes that investment gains/losses create significant earnings volatility. The company maintains a policy of not repurchasing stock if consolidated cash and Treasury holdings fall below $30 billion.
- Capital Expenditures: BNSF and BHE forecast capital expenditures of approximately $12.4 billion for the remainder of 2026.
Key Facts for Investor Verification
- Cash Position: Verify the total of cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses, which stood at approximately $373.5 billion (net of unsettled purchases) as of March 31, 2026.
- Wildfire Liability Status: Monitor the status of the Oregon Supreme Court review regarding the "James" case and any updates to PacifiCorp's estimated loss reserves beyond the $2.9 billion accrued.
- Investment Portfolio: Review the composition of the $288 billion equity portfolio, noting that the five largest holdings (American Express, Apple, Bank of America, Coca-Cola, Chevron) represented 61% of the total fair value.
- OxyChem Integration: Assess the financial performance of the newly acquired OxyChem business in subsequent quarters to determine if it achieves profitability after initial acquisition accounting adjustments.
- Debt Maturities: Note that Berkshire repaid $2.5 billion of maturing debt in Q1 and issued new senior notes in April 2026; verify the impact of foreign currency fluctuations on non-U.S. dollar denominated debt.