Why Is Berkshire Hathaway Stock Trading Lower Monday?

Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) stock edged lower in Monday’s premarket trading after the conglomerate reported mixed third-quarter results Saturday, with higher revenue offset by weaker earnings and a sharp decline in insurance profits.

Berkshire reported adjusted earnings per share of $8,910 for Class A shares, down from $9,380 a year earlier. Adjusted earnings for Class B shares fell to $5.94 from $6.25.

Revenue increased 11.2% year over year to $105.647 billion from $94.972 billion.

Insurance Weakness Drags Down Operating Earnings

Berkshire’s third-quarter operating earnings fell 5.8% to $12.705 billion from $13.485 billion a year earlier.

Insurance underwriting earnings plunged 42.9% to $1.352 billion, while insurance investment income declined 14.1% to $2.734 billion.

However, several other businesses delivered stronger results.

• BNSF: Earnings climbed 19.3% to $1.729 billion.
• Berkshire Hathaway Energy: Earnings rose 8.3% to $1.612 billion.
• Manufacturing, service and retailing: Earnings increased 11.8% to $4.042 billion.
• Earnings from other businesses declined 10.5% to $1.236 billion.

The gains helped offset weakness in Berkshire’s insurance operations.

Net Profit Drops As Investment Gains Shrink

Berkshire’s net earnings attributable to shareholders declined 28.2% to $22.112 billion from $30.796 billion a year earlier.

Investment gains fell to $9.407 billion from $17.311 billion.

The company recorded $7.7 billion in unrealized investment gains during the quarter, compared with $9.2 billion a year earlier.

Operating earnings exclude investment gains and losses, which primarily reflect changes in unrealized gains and losses on equity investments.

Berkshire cautioned that quarterly investment gains and losses can distort reported net earnings and may not reflect underlying business performance.

Berkshire Buys Back $9.6 Billion in Shares

Berkshire repurchased approximately $9.6 billion in shares during the third quarter, bringing its total repurchases for the first nine months of 2026 to $14.4 billion.

The company’s insurance float reached approximately $178.5 billion as of Sept. 30, up $2.1 billion from the end of 2025.

Despite the third-quarter decline, Berkshire’s operating earnings for the first nine months rose 8% to $37.034 billion from $34.286 billion a year earlier.

The results highlight continued strength in Berkshire’s railroad, energy, and manufacturing businesses, even as weaker insurance earnings weigh on quarterly profitability.

Price Action: Berkshire Hathaway shares were down 0.48% at $568.15 during premarket trading on Monday, according to Benzinga Pro data.

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