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For the first time in six decades Omaha-based Berkshire Hathaway will release its fourth quarter results on 27 February without Warren Buffett at the helm, after he stepped down as CEO at the end of 2025.
Under his leadership the company’s value has seen a cumulative gain of over 5,500,000% compared with 39,000% for the S&P 500 index. Incoming chief executive Greg Abel has big shoes to fill.
Interestingly, the announcement of Buffett’s retirement at the shareholders meeting in May 2025 marked the peak in Berkshire’s share price, and they have since lost around a tenth of their value compared with a 22% gain in the S&P 500. Buffett does remain chair of Berkshire for now.
Why the cash pile will be in focus
A big area of focus for investors will on how Abel intends to address the company’s record $382 billion cash pile which is expected to grow further after Berkshire announced its potential exit from Kraft Heinz, a stake worth nearly $8 billion.
The ill-fated Kraft Heinz investment is a rare misjudgement by Buffett who has admitted he underestimated how the ‘moat’ around traditional brands has shrunk in recent years, at the expense of unbranded items from value retailers like Walmart and Costco.
Berkshire has not repurchased any of its own shares since early 2025, marking the longest period of inactivity since 2018.
Buffett has been very disciplined around share buybacks, arguing that they should only be made when the company is trading at a discount his estimate of fair value.
Dividends have also been off the menu for Berkshire with Buffett prioritising growth over direct shareholder payouts. The company last paid a dividend in 1965, after which, Buffett joked he must have been in the bathroom when the decision was made.
With the cash pile likely to have risen to over $400 billion, all eyes will be on Abel’s capital allocation priorities in a new era for Berkshire. Buffett has said Abel will oversee capital allocation decisions as CEO.
What are analysts expecting Berkshire to report?
Berkshire beat consensus estimates in the last quarter and ahead of the February report it is expected to report adjusted EPS (earnings per share) of $4.89, down 27% on the prior year.
For the full year Berkshire is expected to report EPS of $20.89, down around 5% on 2024 on flat revenue of $384.28 billion, while 2026 estimates imply a further decline of 4% to $19.98 according to Zacks data.
Tom Sieber: Content Editor
Tom Sieber is AJ Bell's Content Editor. He was previously the Editor of Shares Magazine. He has been with the business since 2012.
Tom is a regular contributor to the AJ Bell Money & Markets...
