Berkshire Hathaway reported a sharp drop in operating earnings in the final quarter under CEO Warren Buffett, marking the end of an extraordinary leadership era.

Operating earnings totaled $10.2 billion in the fourth quarter, down more than 29% from $14.56 billion in the same period a year earlier.

The decline was largely driven by weaker performance in the company’s insurance businesses — long considered one of Berkshire’s core profit engines.

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Insurance Business Takes a Hit

Underwriting Profits Fall 54%

Insurance underwriting profits dropped 54% year over year, falling to $1.56 billion from $3.41 billion in the prior-year quarter.

Underwriting refers to the profit insurers generate after paying claims and expenses. A sharp drop in this segment significantly weighed on overall results.

Investment Income Also Declines

Insurance investment income — another major contributor to Berkshire’s earnings — slid nearly 25%, decreasing to $3.1 billion from $4.088 billion a year earlier.

Together, these declines explain much of the earnings slowdown in Buffett’s final quarter at the helm.

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The End of the Buffett Era

This quarterly report carries symbolic weight. It was the last earnings release reflecting results under Warren Buffett as CEO.

Buffett, widely regarded as one of the greatest investors of all time, announced at Berkshire’s annual shareholders meeting last May that he would step down from the chief executive role.

For decades, Buffett built Berkshire Hathaway into a sprawling conglomerate with businesses spanning insurance, railroads, utilities, energy and consumer brands. His disciplined capital allocation strategy and long-term investment philosophy became legendary on Wall Street.

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Greg Abel Takes Over in 2026

Leadership officially transitioned to Greg Abel at the start of 2026.

In Berkshire’s annual letter accompanying the latest results, Abel pledged to continue the culture Buffett established — emphasizing financial strength, prudent risk management and capital discipline.

Abel, who previously oversaw Berkshire’s non-insurance operations, is seen as a steady hand rather than a radical change agent. Investors will be watching closely to see how he navigates economic cycles and capital deployment decisions without Buffett at the top.

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What the Earnings Drop Signals

While a 30% drop in operating earnings is significant, Berkshire’s results can fluctuate due to:

• Catastrophe-related insurance losses
• Changes in investment income
• Market conditions affecting portfolio returns

The company’s diversified structure often helps cushion downturns in individual segments. However, the sharp decline in insurance profits highlights the sensitivity of Berkshire’s earnings to underwriting conditions and investment yields.

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A Turning Point for Berkshire Hathaway

The earnings report not only reflects a challenging quarter but also symbolizes a generational shift.

Buffett’s tenure as CEO defined Berkshire Hathaway’s identity for more than half a century. With Greg Abel now in charge, the company enters a new chapter.

Whether earnings rebound quickly or face further headwinds, one thing is certain: the post-Buffett era at Berkshire Hathaway has officially begun.