Berkshire Hathaway reported $11.35 billion in operating earnings for the first quarter under CEO Greg Abel. This marks a significant moment as it is the first quarterly report since Warren Buffett stepped down.
Operating earnings increased nearly 18% from last year but fell short of estimates of $11.56 billion. The company’s cash pile rose to more than $397 billion.
Net income attributable to shareholders reached approximately $10.1 billion, more than double the $4.6 billion reported last year.
Berkshire earned $1.7 billion from insurance underwriting, reflecting a 28% increase from the same period last year. However, Geico reported a troubling 34% drop in earnings despite the overall growth in insurance underwriting.
Greg Abel officially took over as CEO on January 1, 2026. Warren Buffett attended the annual meeting on Saturday and expressed confidence in Abel’s leadership.
Buffett stated, “Greg is doing everything I did and then some, and he’s doing it better in all cases.” This statement underscores the smooth transition of power within Berkshire Hathaway.
Additionally, Berkshire’s largest holding remains in Apple, which recently reported better-than-expected earnings with iPhone sales up 22% compared to last year.
The challenges ahead for Berkshire include addressing Geico’s performance and sustaining growth in its insurance sector. Analysts are closely watching how Greg Abel will maneuver through these hurdles.