Berkshire Hathaway Earnings Miss Projections as Abel Takes Helm

Got story updates? Submit your updates here. ›

Berkshire Hathaway reported fourth-quarter and full-year 2025 results that showed net earnings attributable to shareholders slipping to $66,968 million for the year from $88,995 million in 2024. The release marked the first annual shareholder letter under new CEO Greg Abel, as the company navigates a post-Warren Buffett era with over $300 billion in cash on its balance sheet.

Why it matters

Berkshire's earnings miss and the transition to new leadership under Abel raise questions about the company's future investment strategy and capital allocation decisions, which have significant implications for Berkshire's sprawling conglomerate of insurance, railroad, utility and manufacturing businesses.

The details

Berkshire's 2025 net income included $30,737 million of investment gains, down from $41,558 million in 2024, and it also booked other-than-temporary impairment charges tied to Kraft Heinz and Occidental totaling $8,255 million for the year. Insurance underwriting and investment income also declined year-over-year. However, the company's manufacturing, service and retailing divisions remained strong contributors to operating earnings.

• Berkshire Hathaway reported fourth-quarter and full-year 2025 results on February 28, 2026.
• Greg Abel is now the CEO, taking over from Warren Buffett.

What’s next

Investors will be closely watching Greg Abel's first annual shareholder letter for clues on how he plans to deploy Berkshire's substantial cash reserves and whether he will pursue a different investment strategy than his predecessor, Warren Buffett.