Berkshire shares rise as Abel debuts, operating profit jumps 18%

Berkshire Hathaway shares rose about 1.3% as investors gave Greg Abel a favorable first verdict in his debut as chief executive, with the market treating the company’s latest earnings as a sign that Warren Buffett’s handoff is starting without visible disruption. The move came after Berkshire reported first-quarter operating earnings of $11.346 billion, up from $9.641 billion a year earlier, while net earnings attributable to shareholders climbed to $10.106 billion from $4.603 billion.

The operating gain was driven largely by insurance underwriting, underscoring how much Berkshire still leans on the businesses that have long powered its results. But for shareholders, the bigger question was not just the quarter; it was whether Abel can keep the conglomerate’s playbook intact after Buffett. The first public test of that transition appeared to go well, with investors responding to Abel’s performance at Berkshire’s annual meeting and to a presentation that emphasized discipline rather than reinvention.

Berkshire said its cash and U.S. Treasury bills totaled $397.4 billion at March 31, 2026, a stockpile that continues to shape expectations around capital allocation. That enormous reserve also sharpened attention on how Abel plans to deploy Berkshire’s balance sheet without becoming more bureaucratic. At the meeting in Omaha, Nebraska, Abel fielded questions on artificial intelligence, the future of Berkshire’s subsidiaries and the company’s capital-allocation priorities. He said Berkshire would not pursue AI for its own sake and would stick to a cautious, value-driven approach. He also said he does not expect to break up the conglomerate or divest key businesses.

The annual meeting, held Saturday at the CHI Health Center, was the first under Abel’s leadership after Buffett announced on May 3, 2025 that he would recommend Abel as CEO and the board unanimously approved the move on May 4, 2025. The succession took effect on January 1, 2026. Buffett remains chairman, but at this year’s meeting he sat with other board members rather than on stage, a subtle but clear signal that Berkshire is entering a new era while trying to preserve its old one. For investors, the early judgment was reassuring: Abel appears to understand Berkshire’s moving parts, and the market is still willing to believe continuity can survive the change at the top.