Berkshire Hathaway (BRK.A) Q2 FY2026: Net Income +107%, Liquidity $365.5B Down $32B From Record; Abel Era Resumes Buybacks, M&A

Berkshire Hathaway (BRK.A) Q2 FY2026: Net Income +107%, Liquidity $365.5B Down $32B From Record; Abel Era Resumes Buybacks, M&A

Berkshire Hathaway posted net income of $25.667 billion in the second quarter of 2026, up 107.5% from $12.370 billion a year earlier (SEC 10-Q filing, as of June 30, 2026; all figures from the same source unless noted). An unrealized gain of $16.077 billion (pre-tax) on equity securities drove the headline figure, but operating earnings — which exclude investment gains and losses — rose 16.3% year over year to $12.983 billion. The net income doubling came from portfolio revaluation, not core operations.

Liquidity contracted. Cash and cash equivalents (excluding restricted cash) fell from $51.877 billion at year-end to $40.609 billion, while short-term U.S. Treasury Bill investments edged up from $321.4 billion to $324.9 billion, leaving combined cash-plus-T-bill liquidity down 2.1% from $373.3 billion at year-end to $365.5 billion. The critical context: $365.5 billion is not a record — Berkshire's combined liquidity hit an all-time high of $397.4 billion as of March 31, 2026, and shed $32 billion in a single quarter. OxyChem's $9.4 billion cash acquisition in January, $4.44 billion of share repurchases in the first half, and $11.6 billion of net equity purchases consumed the difference. The $6.8 billion acquisition of Taylor Morrison, signed May 31 and completed July 24, will appear on the balance sheet in Q3.