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Berkshire Hathaway more than doubles buybacks in third quarter as earnings decline
Berkshire Hathaway more than doubled its share buybacks in the third quarter, repurchasing $9.6 billion of its own stock as operating and overall earnings declined. The increase brings its 2026 buybacks to about $14.4 billion and signals a larger use of capital for repurchases during a quarter when insurance profits weakened.
Operating earnings fell 5.8% year on year to $12.705 billion. Insurance underwriting profit dropped 43% to $1.352 billion and investment income fell 14% to $2.734 billion, while railroad, energy and manufacturing earnings rose. Overall earnings declined 28% to $22.112 billion, with investment gains nearly halving to $9.407 billion; Berkshire shares gained more than 12% over the past month as the S&P 500 fell 5.5%.
In short
- Berkshire repurchased $9.6 billion of shares in the third quarter.
- Operating earnings fell 5.8% as insurance profits weakened.
- Its shares rose while the S&P 500 declined over the past month.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The buybacks can be seen as a disciplined way to return capital when Berkshire believes its shares are worth more than the market price, while allowing continuing shareholders to own a larger share of the business. Despite weaker insurance results and lower earnings, the company remained profitable, and the rise in repurchases may signal confidence in its long-term value and prospects.
The case against
The larger buybacks may be questioned because operating earnings fell and insurance underwriting and investment income weakened, raising doubts about whether this was the best use of capital. Repurchases can also concentrate benefits among existing shareholders while leaving less room for other investments or a cash buffer if business conditions deteriorate.
Explained simply
Berkshire Hathaway is a large US company that owns businesses in areas such as insurance, railways, energy and manufacturing, and also invests in shares and other assets. Its operating earnings come from its businesses, while its overall earnings also include changes in the value of its investments.
The company can use spare cash to buy back its own shares, reducing the number held by investors. These purchases are one way Berkshire returns money to shareholders and reflect how its leaders choose to allocate the company’s capital.