Berkshire Hathaway's Q4 Operating Earnings Plunge 29% Amidst Halved Underwriting Profit in CEO Warren Buffett's Final Quarter

Berkshire Hathaway Q4 Earnings Report

Key Highlights

• $10.2 billion in operating earnings in Q4 2025, down 29% year-on-year
• $1.56 billion in insurance underwriting profits, down 54% from Q4 2024
• $3.1 billion in insurance investment income, down 25% from Q4 2024

Full Year 2025 Results

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

• $44.49 billion in operating earnings, down from $47.44 billion in 2024
• $7.26 billion in annual insurance underwriting profits, down from $9 billion in 2024
• $12.5 billion in annual insurance investment income, down from $13.6 billion in 2024

Leadership Transition

• Warren Buffett stepped down as CEO on January 1, 2026, with Greg Abel taking over as CEO
• Buffett remains Chairman of the company

Share Repurchase and Cash Holdings

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

• No share repurchases were made in Q4 2025
• Cash holdings decreased to $373.3 billion at the end of Q4, down from a record $381.6 billion in Q3

Stock Performance

• Berkshire Hathaway Class A shares rose 10% in 2025, outperforming the S&P 500's 16.4% gain
• Since 1965, Berkshire has generated compounded annual gains of 19.7%, exceeding the S&P 500's compounded increases over the same period