Berkshire Hathaway Inc. (BRK-A) AI Stock Analysis
BRK-A AI stock analysis summary
AI ResearchBerkshire Hathaway Inc. (BRK-A) is a diversified conglomerate operating across insurance, freight rail, utilities, and various manufacturing sectors. The company reported trailing twelve months revenue of $384.69B and maintains a robust net cash position of $236.14B as of June 30, 2026. Over the past five years, the stock has delivered an 86.6% return, trading at a trailing price-to-earnings multiple of 13.4x.
- Market cap
- $1.14T
- Revenue (TTM)
- $384.69B
- P/E
- 13.4x fwd 22.4x
- 1Y return
- 8.9% S&P 500 16.8%
- Avg. target
- $799502.75 0.2% vs last close
Bull case
- The company holds $365.51B in cash and short-term investments, supporting a net cash position of $236.14B as of June 30, 2026.
- Quarterly earnings grew 107.8% year-over-year in the latest quarter ended June 30, 2026.
- Five-year stock returns of 86.6% have outpaced the S&P 500 benchmark return of 83.0% with a low beta of 0.59.
Bear case
- Forward price-to-earnings stands at 22.4x, well above the US-listed Financial Services peer median of 10.8x.
- Annual revenue growth was flat at 0.0% in FY2025, following a modest 1.9% increase in FY2024.
- Analysts project next fiscal year EPS to fall 1.0% to $32256.88.
What Berkshire Hathaway does
Berkshire Hathaway Inc. is an Omaha, Nebraska-based conglomerate operating extensive businesses across multiple industries. Its core insurance segment provides property, casualty, life, accident, and health insurance, alongside significant reinsurance activities. The company also operates one of North America's largest freight rail networks, facilitating transportation across the continent. Additionally, its energy operations encompass electric generation, transmission, and distribution using natural gas, coal, nuclear, geothermal, and renewable sources like wind and solar. Berkshire Hathaway further engages in diverse manufacturing and industrial activities, producing confectionery items, specialty chemicals, aerospace components, building materials, and various consumer goods.
Growth and profitability
Over the five-year period from FY2020 to FY2025, revenue achieved a compound annual growth rate of 8.6%, expanding from $276.09B in FY2021 to $371.44B in FY2025. Annual net income experienced notable volatility, registering $89.80B in FY2021, -$22.06B in FY2022, and $66.97B in FY2025 with a net margin of 18.0%. Operating margin stood at 15.9% in FY2025, recovering from negative levels in FY2021 and FY2022. For the trailing twelve months, revenue reached $384.69B with a profit margin of 22.3% and an operating margin of 32.6%. In the latest quarter ended June 30, 2026, quarterly revenue grew 10.0% year-over-year, while quarterly earnings surged 107.8%.
Balance sheet and cash flow
As of June 30, 2026, Berkshire Hathaway held $365.51B in cash and short-term investments against $129.37B in total debt, yielding a net cash position of $236.14B. Total assets stood at $1.26T, while shareholders' equity was $750.18B. The company maintained a current ratio of 7.29 and a debt-to-equity ratio of 0.17. In FY2025, operating cash flow was $45.97B, free cash flow was $25.04B, and capital expenditures totaled $20.93B. Over five years, the share count declined 2.8%.
Valuation and performance
Berkshire Hathaway carries a market capitalization of $1.14T and trades at a trailing price-to-earnings multiple of 13.4x, slightly above the median of 12.1x for its US-listed Financial Services peers. Its forward price-to-earnings ratio is 22.4x, compared to the peer median of 10.8x, while its price-to-sales ratio of 3.0x is slightly below the peer median of 3.2x. Over the past year, the stock returned 8.9%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, its 86.6% return outperformed the index's 83.0% gain. The stock has a beta of 0.59.
What analysts expect
Wall Street coverage consists of 1 Strong Buy, 0 Buys, 2 Holds, and 1 Sell. The mean price target is $799502.75, representing a 0.2% premium over the last close of $798000.00. For the current fiscal year ending December 31, 2026, analysts expect revenue of $391.81B and EPS of $32584.42, reflecting an EPS growth rate of 5.3%. For the next fiscal year, 4 analysts project revenue of $424.82B and an EPS decline of 1.0% to $32256.88. Over the last 4 quarters, the company beat EPS estimates twice.
Key risks and what to watch
- Annual net income has shown sharp swings, shifting from $89.80B in FY2021 to -$22.06B in FY2022 before rising to $96.22B in FY2023.
- Trailing one-year share price return of 8.9% substantially lagged the S&P 500 gain of 16.8%.
- The company beat EPS estimates in only 2 of the last 4 quarters, pointing to mixed earnings consistency.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this BRK-A AI stock analysis
This page is an AI-written research summary of Berkshire Hathaway Inc. (BRK-A). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: BRK-A income statement, BRK-A balance sheet, BRK-A key metrics, BRK-A analyst forecast, BRK-A chart. See the BRK-A stock overview for the latest quote and news.
BRK-A AI stock analysis FAQ
What is Berkshire Hathaway's ticker symbol and share price?
Berkshire Hathaway trades under the ticker BRK-A on the NYSE, with its last close recorded at $798000.00 on October 16, 2026.
How strong is Berkshire Hathaway's balance sheet?
As of June 30, 2026, the company held $365.51B in cash and short-term investments against $129.37B in debt, resulting in net cash of $236.14B and a current ratio of 7.29.
What are analysts forecasting for Berkshire Hathaway's revenue and earnings?
For FY2026, analysts project revenue of $391.81B and EPS of $32584.42. For the following fiscal year, revenue is projected at $424.82B with an EPS of $32256.88.
Does Berkshire Hathaway trade at a premium to its peers?
Berkshire Hathaway trades at a forward P/E of 22.4x compared to the median of 10.8x for US-listed Financial Services peers, though its price-to-sales ratio of 3.0x sits below the peer median of 3.2x.