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Berkshire Hathaway reported Q2 FY2026 revenue of $101.8 billion, compared with $92.5 billion in Q2 FY2025; the company’s revenue change measure was 10.0%. Revenue, as the consensus counts it, was $101.8 billion against consensus revenue of $95.3 billion, or 6.83% above the consensus. Adjusted EPS, as the consensus counts it, was $6.02 against consensus adjusted EPS of $5.24, or 14.9% above the consensus.
The company reported diluted EPS of $11.91, versus $5.73 a year earlier, while gross margin was 80.1%, compared with 78.7%, and operating margin was 33.7%, compared with 23.7%. Free cash flow was $5.6 billion, versus $5.2 billion a year earlier. The filing said after-tax insurance underwriting earnings declined 13.1%, while BNSF earnings increased 6.3%, BHE earnings increased 26.9%, and manufacturing, service and retailing earnings increased 24.1%. Berkshire attributed BNSF’s earnings increase to higher shipping volumes and operating efficiencies, partly offset by fuel costs and a higher effective income tax rate. The company reported no management guidance for the quarter, so no comparison with its own outlook is available.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $101.8 billion | $92.5 billion | 10.0% |
| Diluted EPS | $11.91 | $5.73 | 107.9% |
| Gross margin | 80.1% | 78.7% | 1.3 percentage points |
| Operating margin | 33.7% | 23.7% | 10.1 percentage points |
| Free cash flow | $5.6 billion | $5.2 billion | 6.56% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $6.02 | $5.24 | Beat by 14.9% |
| Revenue | $101.8 billion | $95.3 billion | Beat by 6.83% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Berkshire Hathaway did not hold an earnings call for Q2 FY2026, so there is no call commentary from management, no analyst questions and no call-specific discussion of demand, pricing, margins, investment, competition or the quarter ahead.
In its filing, Berkshire said insurance underwriting earnings declined 13.1% in the quarter. The company reported that GEICO’s loss ratio increased as claims frequencies and average severities rose, and that underwriting expenses increased primarily because of commissions and advertising expenses. Berkshire also said insurance investment income declined because lower interest rates reduced interest income.
The filing said BNSF’s after-tax earnings rose 6.3%, benefiting from higher shipping volumes and improved operating efficiencies. Berkshire reported railroad operating revenue growth of 14.6%, with car/unit volume up 6.5% and average revenue per car/unit up 7.6%, primarily from higher fuel-surcharge revenue and higher yield. The company said fuel expense increased with higher average fuel prices and volume, partly offset by fuel efficiency.
Berkshire reported that BHE’s after-tax earnings increased 26.9%, reflecting higher earnings from U.S. utilities and natural-gas pipelines, partly offset by lower earnings from other energy businesses. The filing attributed higher U.S. utility earnings partly to increased electric utility margin and production-tax-credit benefits, while identifying higher interest expense and energy operating expenses as offsets.
The company said manufacturing, service and retailing earnings increased 24.1%, driven by industrial-products manufacturing and services. Berkshire also disclosed that IMC expected higher raw-material costs to negatively affect its earnings during the second half of 2026, but it did not quantify that effect.
Guidance
Berkshire Hathaway did not provide management guidance for Q2 FY2026 or an updated company outlook, so no changed or withdrawn guidance is available. The filing stated that IMC’s earnings over the second half of 2026 are expected to be negatively impacted by higher raw-material costs, without quantifying the effect.