Berkshire Hathaway’s Cash Pile Falls as Q2 Buybacks Accelerate Under Greg Abel
Berkshire Hathaway reported a stronger second quarter on the earnings front, but the company’s enormous cash reserves declined as it stepped up share repurchases under new Chief Executive Officer Greg Abel.
The Omaha, Nebraska-based conglomerate posted approximately $13.0 billion in operating earnings for the second quarter of 2026, representing growth of around 16% from the same period a year earlier. At the same time, Berkshire’s cash, cash equivalents and short-term securities stood at $365.5 billion at the end of June.
The latest cash figure represents an approximately 2% decline from the level recorded at the end of 2025. The decrease is notable because Berkshire had maintained a massive liquidity position for years, giving the company substantial flexibility to make investments, acquisitions and share purchases.
The second quarter was also the second reporting period under Abel, who succeeded billionaire investor Warren Buffett as Berkshire’s chief executive. The company’s increased spending on its own shares was one of the major developments during the quarter.
Share Buybacks Jump Sharply
Berkshire repurchased approximately $4.5 billion worth of its own stock during the second quarter. That was a significant increase from the roughly $234.2 million spent on buybacks during the first quarter.
The first-quarter repurchases had marked Berkshire’s first share buybacks since May 2024. The much larger amount spent in the second quarter indicates a notable acceleration in the company’s use of cash for returning capital through share purchases.
The increase in buybacks also helps explain why Berkshire’s cash holdings moved lower during the quarter. Even after the repurchases, however, the company continued to hold more than $365 billion in cash, cash equivalents and short-term securities.
Manufacturing, Service and Retail Lead Earnings Growth
Berkshire’s operating performance received a major boost from its manufacturing, service and retail businesses.
The segment generated approximately $4.5 billion in earnings during the quarter, an increase of about 24% from a year earlier. Revenue from these operations reached $61.5 billion, up 15% year over year.
The performance of this part of Berkshire’s business was a key contributor to the overall increase in operating earnings. Unlike Berkshire’s investment portfolio, these businesses provide operating income through a diverse collection of companies spanning manufacturing, services and retail.
Overall, Berkshire reported quarterly revenue of approximately $101.8 billion, representing growth of around 10% compared with the year-ago period.
The results therefore showed a mixed picture across Berkshire’s major operating divisions, with some areas delivering strong growth while its insurance businesses experienced declines.
Insurance Operations Face Pressure
Berkshire’s insurance underwriting business reported weaker results during the quarter. Earnings from insurance underwriting fell approximately 13% year over year to $1.7 billion.
Insurance investment income also declined. The company reported investment income of approximately $3.1 billion from its insurance operations, down around 9% compared with the same period a year earlier.
The weaker insurance figures contrasted with the stronger performance of Berkshire’s manufacturing, service and retail operations. As a conglomerate with businesses spread across multiple industries, Berkshire’s overall results can vary significantly depending on the performance of individual divisions.
BNSF Delivers Revenue and Earnings Growth
Berkshire’s railroad operation, BNSF, provided another source of growth during the quarter.
BNSF generated approximately $6.6 billion in operating revenue, an increase of around 15% from a year earlier. Its earnings rose approximately 6% year over year to $1.6 billion.
The railroad’s performance added to the broader improvement in Berkshire’s operating businesses, although its earnings growth was more moderate than that of the manufacturing, service and retail division.
A New Phase for Berkshire
The second-quarter results offer an early look at Berkshire Hathaway’s financial performance under Abel’s leadership. The company continued to maintain an exceptionally large liquidity cushion while simultaneously increasing the amount of capital allocated to share repurchases.
The decline in cash reserves is particularly significant against the backdrop of Berkshire’s historically large cash position. With $365.5 billion still held in cash, cash equivalents and short-term securities at the end of June, the company retains substantial financial resources.
At the same time, the quarter demonstrated that Berkshire’s operating businesses remain an important source of earnings growth. Manufacturing, service and retail operations posted particularly strong gains, while BNSF also delivered higher revenue and earnings.
For Berkshire, the second quarter was therefore defined by two contrasting developments: stronger operating performance and a modest reduction in its enormous cash stockpile as the company increased its share buyback activity.
