May 03, 2026 – Operating earnings rose 18% to $11.3 billion in Q1 2026. Berkshire’s first meeting without Buffett on stage signals a decisive leadership shift.
In Summary
Record cash pile: Berkshire’s cash reserves hit $397B in Q1 2026. That is up from $373B at the end of 2025, an all-time high.
Earnings beat: Q1 2026 operating earnings rose 18% to $11.3B. Net income more than doubled year over year to $10.1B.
New CEO, new era: Greg Abel officially took over on January 1, 2026. This is his first earnings report and shareholder meeting as CEO.
Insurance mixed: Overall underwriting profit rose 28%. But Geico alone posted a 34% drop in earnings, a key risk to watch.
Valuation caution: Morningstar flags BRK shares at an 11% premium to fair value. The stock is up ~36% over the past year.
Berkshire Hathaway held its 2026 annual shareholder meeting on Saturday, May 2. It was the first without Warren Buffett at the CEO podium. Greg Abel, 63, now officially leads the conglomerate. CNN Business reports that Abel presented $11.35 billion in Q1 2026 operating earnings. The cash reserve hit a record $397 billion.
The leadership handover was formalised on January 1, 2026. Buffett had been CEO for six decades. An SEC 8-K filing confirms the Board voted unanimously to appoint Abel. He has served as Vice Chairman of Non-Insurance Operations since 2018.
The Numbers Behind the Headlines
CBS News reports that per-share operating earnings rose to $7,889.44 on a Class A basis. That beat FactSet’s consensus estimate of $7,611.35 per share. Net income attributable to shareholders came in at $10.1 billion. That is more than double the $4.6 billion posted in Q1 2025.
Insurance underwriting earned $1.7 billion. That is a 28% increase year over year. However, Geico reported a 34% drop in its own underwriting earnings. The unit remains a drag despite overall sector recovery.
Greg is doing everything I did and then some, and he’s doing it better in all cases. He’s the right person.
— Warren Buffett, speaking from the audience at the 2026 Annual Meeting
Abel’s First Test: Capital Deployment
The record $397 billion cash pile is the biggest question in Omaha. It rose from $373 billion at the end of 2025. CNBC’s annual meeting recap notes that Abel told attendees he was thinking critically about artificial intelligence. He said Berkshire would not “do AI for the sake of AI.”
Abel also walked through plans to improve the railway unit BNSF and the insurance businesses. He is known as an operations-focused manager. That contrasts sharply with Buffett’s capital-allocation focus. Morningstar analyst Greggory Warren previously described Abel as the “operations guy Berkshire now needs.”
One major portfolio change is already underway. Abel is reportedly unwinding positions tied to former investment manager Todd Combs. Combs departed for JPMorgan at the end of 2025. The remaining portfolio manager, Ted Weschler, now oversees roughly 6% of the equity book. Abel is taking direct oversight of the rest.
Top 5 Holdings: Concentration Remains Firm
Berkshire’s top five equity holdings remain American Express, Apple, Bank of America, Coca-Cola, and Chevron. According to CNBC, these five positions account for 61% of the fair value of the total equity portfolio. Apple remains the single largest holding. Buffett noted from the audience that Apple reported better-than-expected earnings. iPhone sales were up 22% compared to a year ago.
Valuation: Is Berkshire Overpriced Now?
Berkshire’s stock is up approximately 36% from a year ago. However, caution flags are emerging. Morningstar’s analysis places both BRK. A and BRK.B at an 11% premium to fair value estimates. That implies high-single to low-double-digit downside risk if shares revert to intrinsic value.
The conglomerate also faces a hangover from Q4 2025. Operating earnings fell nearly 30% that quarter. A 54% collapse in insurance underwriting profits drove the decline. The Q1 2026 rebound has restored investor confidence. But questions around sustained growth remain.
What This Means for Investors
Abel faces a structural challenge. The conglomerate trails the S&P 500 by more than 30 percentage points since Buffett signalled his departure in May 2025. The record cash pile gives Abel enormous firepower. But deploying it wisely will define his legacy.
Berkshire’s first quarterly report under Abel is broadly positive. Operating earnings beat consensus. Cash hit a record. Net income more than doubled. Yet Geico’s 34% earnings drop and a lingering valuation premium are real risks. This is a transition year. And Omaha is watching closely.
