Berkshire Hathaway operating earnings fell nearly 30% in Warren Buffett's final quarter as CEO
#Berkshire Hathaway#Warren Buffett#Operating Earnings#Insurance Underwriting#Greg Abel#Q4 2025#Share Performance#Cash Position
📌 Key Takeaways
Berkshire Hathaway's Q4 operating earnings fell 29% to $10.2 billion in Buffett's final quarter as CEO
Insurance underwriting profits dropped 54% due to significant weakness in the insurance business
Warren Buffett stepped down as CEO at the end of 2025, with Greg Abel taking over while Buffett remains chairman
Full-year 2025 operating earnings declined to $44.49 billion from $47.44 billion in 2024
Berkshire's stock underperformed the S&P 500 in 2025, rising 10% compared to the index's 16.4% gain
📖 Full Retelling
Berkshire Hathaway reported a significant 29% decline in operating earnings to $10.2 billion during Warren Buffett's final quarter as CEO in the fourth quarter of 2025, largely due to weakness in the conglomerate's insurance business, as Buffett prepared to hand over leadership to Greg Abel starting in 2026. The insurance underwriting profits dropped dramatically by 54% to $1.56 billion from $3.41 billion in the prior year, while insurance investment income fell nearly 25% to $3.1 billion from $4.088 billion a year prior.
This marked the end of an era for Buffett, who had announced his departure as CEO at the annual shareholders meeting in Omaha, Nebraska on May 3, 2025. Despite the earnings decline, Buffett remains chairman of the board, while Greg Abel officially took over as CEO at the beginning of 2026. In Berkshire's annual letter accompanying the results, Abel vowed to maintain the culture of financial strength and capital discipline that Buffett had cultivated during his long tenure.
For the full year 2025, Berkshire's operating earnings totaled $44.49 billion, down from $47.44 billion in the previous year. The insurance segment continued to struggle with underwriting profits of $7.26 billion (down from $9 billion in 2024) and investment income easing to $12.5 billion from $13.6 billion. Despite the lack of significant buybacks, Berkshire's cash hoard remained substantial, though it dipped slightly to $373.3 billion from a record $381.6 billion in the third quarter. Notably, Berkshire Hathaway Class A shares rose 10% in 2025, underperforming the S&P 500's 16.4% advance for the year.
American multinational conglomerate holding company
Berkshire Hathaway Inc. () is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. Originally a textile manufacturer, the company transitioned into a conglomerate starting in 1965 under the management of chairman and CEO Warren Buffett (from 1970 to 2025) and vice...
Gregory Edward Abel (born June 1, 1962) is a Canadian businessman who has been president and chief executive officer of Berkshire Hathaway since January 2026. In May 2025, it was announced Abel would succeed Warren Buffett as CEO following Buffett's retirement in late 2025.
Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee. An underwriting arrangem...
Warren Edward Buffett ( BUFF-it; born August 30, 1930) is an American investor and philanthropist who is the chairman and former CEO of the conglomerate Berkshire Hathaway. As a result of his success, Buffett is one of the best-known investors in America. According to Forbes, as of January 2026, Buf...
In this article BRK.B BRK.A Follow your favorite stocks CREATE FREE ACCOUNT Warren Buffett and Greg Abel walkthrough the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025. David A. Grogen | CNBC Berkshire Hathaway reported a big decline in its operating earnings for the fourth quarter, due in large part to weakness in the conglomerate's insurance business. Earnings from operations totaled $10.2 billion in Q4. That's down more than 29% from $14.56 billion in the year-earlier period. This was the final quarter under Warren Buffett as CEO, who announced he was stepping down at the annual shareholders meeting last May. Greg Abel took the reins to start 2026 and vowed in Berkshire's annual letter accompanying Saturday's results to continue the culture Buffett built of financial strength and capital discipline. Buffett remains chairman. Insurance underwriting profits dropped 54% to $1.56 billion from $3.41 billion a year prior. Insurance investment income slid nearly 25% from to $3.1 billion from $4.088 billion. For the full-year 2025, operating earnings totaled $44.49 billion. That's down from $47.44 billion in the year prior. Profits from insurance underwriting came in at $7.26 billion, down from $9 billion in 2024. Insurance investment income for the year eased to $12.5 billion from $13.6 billion a year prior. No buybacks, cash hoard dips slightly Buffett again refrained from buying back Berkshire shares despite ending Q4 along the flatline. Despite the lack of buybacks, the conglomerate's cash hoard did slip to $373.3 billion from a record of $381.6 billion in the third quarter. Berkshire Hathaway Class A shares rose 10% in 2025, lagging the S&P 500's 16.4 advance. This is breaking news. Please check back for updates. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map P...
