On the strong side of the report, operating earnings rose to $12.98 billion from $11.16 billion a year ago, an increase of about 16%. For the first half of 2026, operating earnings also rose and reached $24.33 billion, up from $20.80 billion in the same period last year.
Much of the improvement came from Berkshire’s manufacturing, service, and retail businesses, where second-quarter earnings climbed to $4.47 billion from $3.60 billion. BNSF, Berkshire’s railroad business, earned $1.56 billion, up from $1.47 billion, while Berkshire Hathaway Energy increased earnings to $891 million from $702 million.
Insurance Weakness Clouds a Big Jump in Net Income
Insurance was the softer part of the quarter. Underwriting earnings fell to $1.73 billion from $1.99 billion, while insurance investment income dropped to $3.06 billion from $3.37 billion. The first-half picture was mixed, with underwriting earnings slightly higher year-over-year but investment income still lower.
Berkshire’s headline profit looked much stronger. Net earnings more than doubled to $25.67 billion from $12.37 billion, helped by $12.68 billion in investment gains. Of that amount, $10.9 billion came from changes in unrealized gains on Berkshire’s stock holdings. Last year’s quarter also included a $3.76 billion impairment tied to Kraft Heinz (KHC).
