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Berkshire Hathaway Stock Buybacks Jump to $9.6B as Earnings Fall
Why did Berkshire Hathaway buy back $9.6 billion of stock?
Berkshire Hathaway (BRK.B) reported on Saturday that it bought back $9.6 billion of its own stock in the third quarter, more than double the prior quarter, even as operating earnings fell 5.8% to $12.7 billion.
Key numbers
| Q3 buybacks | $9.6Bmore than 2x Q2's $4.5B |
|---|---|
| Operating earnings | $12.7B-5.8% YoY |
| Net income | $22.1B-28% YoY |
| Insurance underwriting profit | $1.35B-43% YoY |
| Geico underwriting profit | $982M-45% YoY |
| Total cash | $377.4B+3% vs Q2 |
What happened
Berkshire Hathaway (BRK.B) reported on Saturday that it bought back $9.6 billion of its own stock in the third quarter, more than double the prior quarter, even as operating earnings fell 5.8% to $12.7 billion. Analysts had expected only about $1.64 billion of buybacks (per). Geico, the car insurer, saw the profit it makes from selling policies fall to $982 million from $1.77 billion a year earlier. Net income, which includes swings in the value of its stock holdings, fell 28% to $22.1 billion.
Why it matters
Berkshire Hathaway spent far more than expected on its own shares, which it says it does only when the stock trades below what the business is worth. Buybacks leave each remaining shareholder with a bigger slice of the company. But its insurance profit from selling policies fell 43%, and AP reported the buying likely slowed as the share price climbed.
Who this affects
- MarketneutralLow impact
- Berkshire shareholders gain support; broader market impact is small.
- CompanymixedMedium impact
- Shareholders get buyback support but face weaker insurance profits.
- CompetitorsneutralLow impact
- Rival insurers face no direct change from this report.
- IndustrybearishLow impact
- Geico's weaker auto-insurance profit points to rising claim costs.
Berkshire Hathaway vs S&P 500
| Berkshire Hathaway (Class A)BRK.A | +12% | +13% |
|---|---|---|
| S&P 500SPX | -5.5% | +7.8% |
As of 2026-11-07
How we got here
Second quarter ends with $4.5B of buybacks and $365.5B in cash.
Third quarter ends after Berkshire spent about $9.6B repurchasing its own shares.
Class B shares close Friday at $570.89, the last close before the report.
Berkshire reports operating earnings down 5.8% and record $377.4B in cash.
What to watch
- How Berkshire shares trade when markets reopen after the Saturday report.2026-11-09
- Whether buybacks continue or pause as the share price climbs.Q4 2026
- Geico's claims costs and underwriting profit in the next quarterly report.Q4 2026
Educational content only. Not investment advice.
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