Berkshire Hathaway’s First Earnings Quarter Under Greg Abel

On 2 May, Berkshire Hathaway reported US$11.35bn in operating earnings and a record cash pile in the first quarter of 2026, the first under new CEO Greg Abel, Warren Buffet’s successor.

The company currently holds US$397bn in cash and Treasury, up from US$373bn during the last quarter of 2025.

Operating earnings were up nearly 18% from last year, but fell short of estimates that Berkshire Hathaway would gain US$11.56bn, according to FactSet data.

Net income grew to US$10.1bn for the first quarter, more than double from US$3.6bn last year. 

The results come after Greg’s appearance on stage at the company’s annual meeting on 2 April, which has been nicknamed by many in the industry as the “Woodstock for capitalists”.

While many Berkshire shareholders are still getting used to the idea of a leadership change after six decades of Warren Buffet, Warren assured crowds of Greg’s abilities as a CEO, saying at the event: “Greg is doing everything I did and then some, and he’s doing it better in all cases. He’s the right person.”

First quarter under new leadership

Berkshire Hathaway’s earnings report marks the first quarter completed under Greg, who was first announced as Warren’s successor in May 2025 and took up the role officially at the beginning of January 2026.

He penned a letter to shareholders in February this year, praising Warren’s legacy and speaking transparently about the company’s prospects.

In the letter, he stated that “Protecting [Berkshire’s] integrity and reputation is a never-ending journey” and that he plans to “remain relentless” during his efforts to uphold company values.

Despite industry hesitancy over a new CEO, reflected by a 5% fall in shares following Greg’s letter, many were optimistic over Greg’s words, including Macrae Sykes, Portfolio Manager of the Gabelli Equity Trust.

In an email to Warren Buffet Watch, Macrae said: “Overall, [Greg] showed humility, expressed clarity in communication and confidence in his role as the new CEO. No doubt, shareholders should be convinced he has a comprehensive understanding of the Berkshire equity.”

A deep understanding of Berkshire Hathaway

Warren and Greg’s appearance at the annual shareholder meeting drew huge crowds, with finance professor David Kass on X estimating attendance at 25,000. 

Outlets like NBC report that in previous years, attendance could reach as many as 40,000 when the company was under the leadership of Warren and Charlie Munger.

Speaking to CNBC on 1 May, Greg praised his predecessor and emphasised that despite a change in CEO, Berkshire Hathaway’s focus remains unchanged and that Warren will still be a part of the company.

Greg says: “Warren brought this amazing commitment to Berkshire and a deep understanding. And I want [owners] to know that remains, that there’s a team – myself included – that are absolutely committed and have a deep understanding of Berkshire, and we bring that same passion every day.”

In addition to talks of leadership and future strategies, Warren discussed Berkshire Hathaway’s investments, noting its largest was in Apple at a 5.66% share (US$147.6bn).

The tech company reported a larger earnings growth than expected, with iPhone sales up 22% compared to the previous year. Despite the recent announcement of Tim Cook’s departure as CEO, Apple’s stock is currently up 36% compared to 2025.

Warren told those in attendance that investments like these provide returns “without any work,” which, according to him, is Berkshire Hathaway’s “preferred way of operating.”