Earning Preview: Berkshire Hathaway Q4 revenue is expected to increase by 3.02%, and institutional views are cautiously positive
Earnings Agent02-21
Abstract
Berkshire Hathaway will release its Q4 2025 results on February 28, 2026 Pre-Market.
Market Forecast
Based on the company’s guidance dataset, Berkshire Hathaway’s current-quarter revenue estimate is $85.26 billion with an estimated year-over-year increase of 3.02%, forecast adjusted EPS at $5.17 with a projected year-over-year growth of 12.53%, and the company’s last reported gross profit margin and net profit margin were 41.10% and 32.43% respectively; no margin guidance is provided for the current quarter.
The company’s core activities are concentrated in Insurance and Other and Railroad, Utilities and Energy, with Insurance and Other continuing to anchor revenue and underwriting profitability. The most promising segment is Insurance and Other, estimated at $81.67 billion last quarter revenue with outsized sensitivity to premium growth and underwriting gains; year-over-year details were not disclosed in the dataset.
Last Quarter Review
Berkshire Hathaway reported last quarter revenue of $94.97 billion, a gross profit margin of 41.10%, GAAP net profit attributable to the parent company of $30.80 billion, a net profit margin of 32.43%, and adjusted EPS of $6.25; the year-over-year growth rates attached to these measures were provided only for EPS at 33.55%.
A key highlight was a substantial sequential rebound in net profit, with quarter-on-quarter net income growth at 148.96%, aided by strong investment gains and steady operating results. Main business revenue mix featured Insurance and Other at $81.67 billion and Railroad, Utilities and Energy at $13.31 billion, with segment-level year-over-year rates not available in the dataset.
Current Quarter Outlook
Insurance and Other
The Insurance and Other segment is the primary revenue driver and the largest earnings swing factor this quarter. Premium growth trends, catastrophe loss normalization, and underwriting discipline will set the tone for operating profitability, while investment income tied to short-term rates and the equity portfolio will influence reported earnings. With current-quarter revenue projected at $85.26 billion and EPS at $5.17, insurance-specific margins will depend on loss ratios and reserve releases, which are sensitive to large-loss volatility and claims severity trends. Management’s historical emphasis on pricing adequacy, risk selection, and conservative reserving suggests a balanced approach to underwriting profits even if market loss costs remain mixed. In addition, earned investment yields on sizable float further support segment-level profitability as cash and short-term instruments benefit from elevated interest rates relative to prior years.
Railroad, Utilities and Energy
Railroad, Utilities and Energy remains a diversified, capital-intensive platform where rate structures, fuel cost pass-throughs, and industrial activity influence revenue and operating margins. Demand indicators for rail traffic, particularly intermodal and industrial shipments, are expected to be steady rather than expansive heading into the quarter’s print. Utility and energy operations may see stable regulated returns and infrastructure spending, yet earnings could be tempered by depreciation and interest expense from ongoing capital programs. Segment performance will be closely watched for volume resilience and cost efficiency, though the quarter’s consolidated results will be more heavily shaped by insurance underwriting and investment line items. Without explicit quarterly guidance on this segment, investors will evaluate sequential momentum relative to last quarter’s $13.31 billion revenue contribution.
Key Stock Price Drivers This Quarter
The most influential factor for Berkshire Hathaway’s stock price this quarter is the interaction between insurance underwriting results and investment gains. If catastrophe losses are benign and loss-cost trends favorable, underwriting margins are likely to hold, supporting EPS near the forecast. Conversely, elevated catastrophe frequency or severity could compress margins and overshadow stable premium growth. Investment results—both fixed-income income from float and any equity portfolio gains or losses—will significantly affect reported net profit given Berkshire’s scale and mark-to-market accounting. A secondary determinant will be operating performance in rail and utilities, where cost control and demand stability can provide a floor to earnings even if the insurance cycle delivers mixed outcomes. Finally, capital allocation disclosures—including buybacks—can shape investor sentiment by signaling management’s view of intrinsic value and the opportunity set.
Analyst Opinions
Recent institutional commentary points to a cautiously positive stance on Berkshire Hathaway into the quarter, with the majority expecting stable operating performance and modest year-over-year growth anchored by insurance underwriting and investment income normalization. Analysts emphasize that the forecast EPS of $5.17 and revenue of $85.26 billion imply manageable volatility compared with last quarter’s outsized net income swing, and that segment breadth should buffer results against idiosyncratic pressures. The consensus highlights ongoing discipline in insurance pricing and the supportive backdrop for investment income from elevated short-term rates. While rail and utilities are viewed as steady contributors rather than high-growth engines, they are seen as providing stability to consolidated earnings. The majority view anticipates that reported numbers will align with the modest revenue growth and double-digit EPS growth embedded in the forecast dataset, framing expectations for a broadly constructive update on February 28, 2026.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
