Operating profit and net profit tell different stories
Berkshire Hathaway reported third-quarter operating earnings of $12.705 billion on November 7, down from $13.485 billion a year earlier. That is a decline of about 5.8%, calculated from the company’s published figures.
Net earnings attributable to shareholders were $22.112 billion, compared with $30.796 billion in the third quarter of 2025, a fall of about 28.2%. The larger drop reflects, in part, investment gains of $9.407 billion versus $17.311 billion a year earlier.
Berkshire’s operating-earnings measure excludes investment gains and certain impairments. The company cautions that quarterly investment gains, which include changes in unrealized equity gains and losses under accounting rules, can obscure the performance of its operating businesses.
Insurance weakens while several other businesses improve
After-tax insurance underwriting earnings fell to $1.352 billion from $2.369 billion. Insurance investment income declined to $2.734 billion from $3.181 billion.
BNSF earnings rose to $1.729 billion from $1.449 billion, while Berkshire Hathaway Energy increased to $1.612 billion from $1.489 billion. Manufacturing, service and retailing contributed $4.042 billion, up from $3.616 billion. These are quarterly earnings figures, rather than sales or forecasts.
Buybacks and the nine-month comparison
Berkshire says it repurchased approximately $9.6 billion of its own shares during the quarter, taking the first-nine-month total to about $14.4 billion. Those are completed purchases for the reported periods, not a new commitment to future buybacks.
For the first nine months, operating earnings increased to $37.034 billion from $34.286 billion, even though the latest quarter declined. Readers comparing the figures can use the company’s release and Form 10-Q to keep the quarterly and nine-month periods separate. The results do not establish a future return or a buy-or-sell signal.
