Berkshire Hathaway Reports Quarterly Profit Drop

Conglomerate's insurance operations see weakness under new CEO Greg Abel

Mar. 3, 2026 at 6:55am

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Berkshire Hathaway, the conglomerate led by Warren Buffett for six decades, reported a 29.8% drop in fourth-quarter operating earnings to $10.2 billion. The company's insurance business, including car insurer Geico, saw weaker performance due to customer retention issues from recent rate increases. New CEO Greg Abel took over from Buffett at the start of 2026 and sought to reassure investors in his first annual letter that Berkshire's core principles remain intact.

Why it matters

Berkshire Hathaway is one of the most closely watched companies in the world, and the transition from Buffett's leadership to Abel's has been closely scrutinized. The conglomerate's insurance operations are a key driver of its profits, so any weakness there is noteworthy. Abel's first letter to shareholders was an important signal of continuity and his vision for the company going forward.

The details

Berkshire's operating earnings for the fourth quarter totaled $10.2 billion, down 29.8% from the prior year. The company's insurance underwriting arm, led by Geico, saw a 19.5% drop in earnings to $7.2 billion last year due to weaker customer retention amid broad rate increases. In his first annual letter, new CEO Greg Abel sought to reassure investors that Berkshire's core principles remain intact and that the company would be transparent about any failures.

  • Berkshire Hathaway reported its fourth-quarter and full-year 2025 results on February 28, 2026.
  • Warren Buffett announced in May 2025 that he would step down as CEO at the end of the year, with Greg Abel taking over.
  • Berkshire will hold its annual shareholder meeting on May 2, 2026, the first under Abel's leadership.

The players

Berkshire Hathaway

A multinational conglomerate holding company headquartered in Omaha, Nebraska, that owns subsidiaries engaged in a variety of business activities, including insurance, railroads, utilities, and manufacturing.

Greg Abel

The new CEO of Berkshire Hathaway, taking over from Warren Buffett at the start of 2026 after being designated as Buffett's successor in 2025.

Warren Buffett

The legendary investor who served as CEO of Berkshire Hathaway for six decades before stepping down at the end of 2025.

Geico

A major American auto insurance company that is a wholly owned subsidiary of Berkshire Hathaway.

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What they’re saying

“To invest in Berkshire has long been a vote of trust in our founder – a trust that now rests with Berkshire. Your capital is commingled with ours, but it does not belong to us. Our role is stewardship. That stewardship has shaped a culture and reinforced a set of values that are not the result of our success, but the reason for it.”

— Greg Abel, CEO, Berkshire Hathaway

“We will encounter business successes and setbacks. When we fail, we will say so. Doing the right thing also means rectifying our errors. We will act decisively and ruthlessly when a small minority fails to meet our standards.”

— Greg Abel, CEO, Berkshire Hathaway

What’s next

Berkshire Hathaway will hold its annual shareholder meeting on May 2, 2026, the first under Greg Abel's leadership as CEO.

The takeaway

The transition from Warren Buffett's legendary leadership to Greg Abel's stewardship of Berkshire Hathaway will be closely watched, as Abel seeks to maintain the conglomerate's culture and values while addressing challenges like weakness in the insurance business.