Berkshire Hathaway Q4 Earnings Slip 28% to $4.73 EPS, Shares Drop 5%
Berkshire Hathaway reported Q4 operating earnings of $4.73 per share, down 27.7% year over year and missing estimates by 8.9%, while operating revenues fell 0.7% to $94.2 billion, missing consensus by 8.4%. Shares declined 5% as investors reacted to the weaker results and limited insights in the shareholder letter.
1. Q4 Operating Results
Berkshire Hathaway’s Q4 2025 operating earnings amounted to $4.73 per share, a 27.7% decline year over year that missed estimates by 8.9%. Operating revenues were $94.2 billion, down 0.7% year over year and 8.4% below consensus.
2. Segment Performance
The Insurance and Other segment saw operating earnings fall 12.9% to $19.8 billion. Railroad, Utilities and Energy pre-tax earnings rose 7.9% to $9.4 billion, while Manufacturing, Service and Retailing earnings increased 4.4% to $13.6 billion.
3. Investor Reaction
Shares slid 5% following the earnings report and a shareholder letter that offered few new guidance points, signaling investor disappointment over the company’s muted performance and strategic outlook.
4. Financial Position and Capital Allocation
Year-end shareholders’ equity rose 10.4% to $719.7 billion, cash and equivalents climbed 8.7% to $51.9 billion, float increased to $176 billion, operating cash flow jumped 50.3% to $46 billion, and no share repurchases were executed.