Berkshire Hathaway (BRK.A) Q4 2025 earnings
Berkshire Hathaway, the conglomerate led by legendary investor Warren Buffett, reported a significant decline in its operating earnings for the fourth quarter of 2025. The decrease was primarily attributed to weakness in the company’s insurance business.
Operating earnings for the fourth quarter totaled $10.2 billion, marking a decrease of over 29% from the previous year’s figure of $14.56 billion. This quarter marked the last under Buffett’s leadership as CEO, as he announced his retirement at the annual shareholders meeting in May. Greg Abel, who took over as CEO at the beginning of 2026, emphasized in Berkshire’s annual letter that he would continue the culture of financial strength and capital discipline established by Buffett.
The insurance segment of Berkshire Hathaway saw a significant decline in profits, with underwriting profits dropping 54% to $1.56 billion and insurance investment income falling nearly 25% to $3.1 billion. For the full year of 2025, operating earnings totaled $44.49 billion, down from $47.44 billion in the previous year.
Overall earnings, including gains or losses from stock market investments, decreased slightly in the fourth quarter to $19.2 billion, impacted by a $4.5 billion impairment from investments in Kraft Heinz and Occidental Petroleum. Full year overall earnings fell to $66.97 billion from $89 billion in the previous year.
Despite the decline in earnings, Buffett refrained from buying back Berkshire shares in the fourth quarter. The company’s cash hoard decreased slightly to $373.3 billion from a record high of $381.6 billion in the third quarter. Berkshire Hathaway Class A shares rose 10% in 2025, trailing the S&P 500’s 16.4% gain.
Since 1965, Berkshire Hathaway has delivered compounded annual gains of 19.7%, nearly double the S&P 500’s performance over the same period. The company’s overall gains exceed 6,000,000% compared to the S&P 500’s 46,061%, including dividends. Abel highlighted these impressive returns in his first annual letter to shareholders as CEO.
Despite the challenges faced in the fourth quarter, Berkshire Hathaway remains a powerhouse in the investment world, with a track record of delivering long-term value to shareholders. Buffett’s legacy of prudent financial management and value investing continues to be the cornerstone of the company’s success.
