Berkshire Hathaway reported the company’s net worth during the first half increased by 4.3%, or $30.5 billion, to $747.9 billion with book value equal to about $522,395 per Class A share as of 6/30/26. Berkshire boasts the largest shareholders’ equity of any U.S. company.

Net Earnings and Investment Gains
Berkshire Hathaway’s second-quarter GAAP net earnings surged to $25.7 billion, more than doubling the $12.4 billion reported a year earlier.

However, these figures remain subject to heavy volatility due to fluctuations in the market value of Berkshire's massive equity portfolio. For the quarter, the company recorded $12.7 billion in investment gains—a combination of $10.9 billion in changes in unrealized gains and $1.8 billion in realized gains on sales of investments—representing a significant improvement over the $5.0 billion investment in the prior year period.

As of quarter-end, Berkshire’s "Big Five" holdings accounted for approximately 66% of its total equity portfolio. Alphabet joined the Big Five during the quarter, bumping out Chevron. Performance among these core assets was strong:

• Alphabet led the group by googling up a lofty 24% gain during the quarter thanks to strong cloud growth.
• Bank of America deposited a nearly 17% gain while American Express charged 12% higher as interest rates stabilized and consumer credit default fears eased.
• Apple climbed a rosy 14% as its ecosystem strengthened.
• Coca-Cola popped a sweet 7% as it raised its full year profit projections.

Revenues and Operating Earnings
During the second quarter, Berkshire’s total revenues increased 10% to $101.8 billion and operating earnings jumped 16% to $13 billion. Excluding foreign currency swings during the quarter, operating earnings increased 5%.

Insurance
Berkshire Hathaway’s insurance segment delivered weak performance in the second quarter of 2026, with underwriting earnings declining 13% to $1.7 billion despite no significant catastrophe losses. The gecko was the primary culprit as GEICO’s pre-tax underwriting earnings fell 45% to $994 million due to rising costs and a competitive landscape leading to higher commission and advertising costs. Berkshire’s primary and reinsurance groups saw sharply improved results during the quarter.

Insurance investment income slipped 9% to $3.1 billion, largely due to a lower interest rate environment affecting bond and cash yields. Berkshire's "all-important" insurance float—premiums held before claims are paid—grew by approximately $1.1 billion since year end to reach $177.5 billion. Because underwriting was profitable, the cost of this massive capital pool was effectively negative.

Railroad (BNSF)
BNSF’s second quarterly revenue steamed ahead 15% to $6.6 billion, fueled by a 6.5% uptick in volume and a 7.6% rise in revenue per car/unit. The growth was spearheaded by a robust 12% surge in agricultural and energy shipments and a 9% increase in consumer shipments, while the increase in revenue per car reflected disciplined core pricing and higher fuel surcharges.

Net earnings chugged 6% higher to $1.6 billion. Earnings benefited from higher shipping volumes and improved operating efficiencies, partly offset by higher fuel costs and tax rates.

Energy (BHE)
Berkshire Hathaway Energy delivered a 5% revenue increase to $6.7 billion in the second quarter of 2026, with net earnings growth charging 27% higher to $891 million. The strong results reflected higher earnings from the U.S. utilities and natural gas pipeline businesses, partially offset by lower earnings from other energy businesses.

PacifiCorp’s cumulative wildfire loss estimates reached approximately $2.9 billion by June 30, 2026, with $2.3 billion already paid. It is reasonably possible PacifiCorp will incur material additional losses beyond the amounts accrued.

Manufacturing
Berkshire’s Manufacturing businesses reported revenues increased 13% to $22.6 billion for the second quarter with operating earnings hammering out a 27% gain to $4.1 billion.

The Industrial Products segment delivered robust results with revenues jumping 27% to $12.2 billion and operating earnings rising 41% to $2.6 billion. While the Q1 acquisition of OxyChem provided a $1.4 billion boost to the top line, organic revenue growth was led by IMC. Driven by accelerated customer purchasing, IMC’s revenues rose 27% to $1.3 billion, while pre-tax earnings surged 71%. Notably, IMC’s global operations—including its significant manufacturing base in Israel—have remained resilient and unaffected by regional conflicts. Precision Castparts sales increased 14% during the second quarter to $3.1 billion with pre-tax earnings soaring 34%, reflecting strong aerospace and industrial gas turbine growth and operating efficiencies. Lubrizol’s revenues rose 11% during the second quarter to $1.8 billion with pre-tax earnings increasing a squeaky clean 23% due to the impact of higher sales volumes and selling prices.

Building Products revenues increased 1% to $7.0 billion, with operating earnings up 7% to $1.1 billion. Certain building products businesses experienced lower customer demand, attributable to relatively low home construction activity in the first half of the year. These results also reflect the transition of Acme Brick to Marmon at the beginning of the year.

The Consumer Products segment saw a 2% revenue decline to $3.4 billion, yet operating earnings increased 12% to $423 million. While lower sales volumes at Fruit of the Loom and Forest River pressured the top line, these were partially offset by growth at Brooks Sports, Duracell, Jazwares and Richline. The earnings expansion was driven by increased profitability and tariff refunds at Brooks and Jazwares, and the benefit of tax credits at Duracell.

Service and Retailing
Service and Retailing revenues increased 17% during the quarter to $38.9 billion with pre-tax earnings popping 24% to $1.7 billion.

The Service group delivered a standout performance, with revenues rising 21% to $6.9 billion and pre-tax earnings climbing 21% to $879 million. Growth was fueled by aviation services, electronics distributor TTI, and IPS (life sciences and data center construction services).

Retailing group revenues were essentially unchanged at $5.0 billion, while pre-tax earnings edged up 3% to $387 million. Berkshire Hathaway Automotive (BHA) accounts for approximately 70% of the group’s top line with revenues up less than 1% during the quarter. Despite lower vehicle sales, BHA’s pre-tax earnings rose 5%, driven by strong service contract performance. Conversely, the group’s other retail businesses faced headwinds from increased competition and shifting consumer confidence, resulting in a collective 3% decline in earnings during the quarter.

Pilot Travel Centers’ second-quarter revenues soared 48% to $14.9 billion thanks to higher fuel prices. Pre-tax earnings more than doubled to $290 million due to higher gross margins.

McLane’s revenues declined 4% to $12.1 billion, primarily reflecting lower sales volumes following the loss of several customers. Pre-tax earnings dipped 2% to $173 million due to lower overall gross margins.

Financial Position
As of June 30, 2026, Berkshire Hathaway maintains an exceptionally strong capital base of $747.9 billion, supported by significant liquidity. Excluding investments in railroads and energy, the company held $720.0 billion in total investments, with a heavy weighting toward cash and cash equivalents--holding the most cash of any U.S. company:

• Cash and Short-Term Investments: $359.2 billion (50% of non-operating investments).
• Equity Securities: $323.8 billion (45%), consisting of various marketable holdings.
• Equity Method Investments: $19.9 billion (2.7%), which includes significant stakes in:
• Kraft Heinz: 27.5% ownership.
• Occidental Petroleum: 26.9% ownership.
• Fixed-Income Investments: $17.0 billion (2.3%).

This massive liquidity position provides Berkshire with substantial "dry powder" for future acquisitions or market opportunities.

Free Cash Flow
During the first half of 2026, Berkshire generated $21.6 billion in operating cash flow (+3.2%) and invested $10.6 billion in capital expenditures (+16.3%), including capital expenditures of $6.7 billion by BNSF and BHE. BNSF and BHE maintain very large investments in capital assets (property, plant and equipment) and regularly make significant capital expenditures in the normal course of business. BHE and BNSF forecast capital expenditures for the remainder of 2026 of approximately $8.6 billion. Free cash flow during the first half dipped 7% to $11.0 billion, reflecting the higher capital expenditures.

During the first half, Berkshire paid $39.4 billion to acquire equity securities, including $10 billion of Alphabet in a private placement during the second quarter, and received proceeds of $27.8 billion from the sale of stocks, including the liquidation of many of the stocks previously managed by Todd Combs, the former investment manager who departed Berkshire. This represents the first time in 14 quarters that Berkshire has become a net buyer of stocks again. Berkshire purchased a net $3.4 billion in Treasury Bills and fixed-income investments during the first half.

On January 2, 2026, Berkshire acquired Occidental’s chemicals business (“OxyChem”) for approximately $9.5 billion. On Feb. 15, 2026, PacifiCorp announced plans to sell part of its Washington operations for $1.9 billion in cash which is expected to close in the first half of 2027. Subsequent to quarter end, Berkshire completed the acquisition of Taylor Morrison Home for approximately $6.8 billion.

Share Repurchases
Berkshire Hathaway continues to repurchase shares when market prices fall below intrinsic value, as conservatively determined by CEO Greg Abel in consultation with Chairman Warren Buffett. During the second quarter, the company repurchased approximately $4.5 billion in treasury shares including 413 Class A shares at an average price of $733,775 and 7,139,881 Class B shares at an average price of $487.98 in June. Share repurchases continued subsequent to quarter end with an additional $3.4 billion stock estimated to have been repurchased through July 29th. This represents Berkshire’s largest buyback activity since 2021 and loudly signals Berkshire’s attractive valuation ;-)