Berkshire Hathaway Inc. (BRK-B) AI Stock Analysis

NYSE: BRK-BAI research summary: business, growth, valuation, analysts, bull and bear case.

BRK-B AI stock analysis summary

AI Research

Berkshire Hathaway Inc. (BRK-B) is a diversified holding company operating across insurance, freight rail, utilities, and manufacturing with a market capitalization of $1.14T. In the trailing twelve months, the company generated $384.69B in revenue with a net profit margin of 22.3%. It holds a net cash position of $236.14B as of June 30, 2026.

Market cap
$1.14T
Revenue (TTM)
$384.69B
P/E
13.4x
fwd 22.7x
1Y return
8.8%
S&P 500 16.8%
Avg. target
$547.67
2.9% vs last close

Bull case

  • The company maintains strong liquidity with $365.51B in cash and short-term investments and a net cash position of $236.14B as of June 30, 2026.
  • Quarterly earnings growth reached 107.8% year-over-year for the period ending June 30, 2026.
  • Over the past five years, Berkshire Hathaway has repurchased shares, reducing its share count by 4.4%.

Bear case

  • The stock's forward P/E multiple of 22.7x trades at a notable premium to the S&P 500 Financial Services peer median of 12.2x.
  • Annual revenue growth stalled at 0.0% in FY2025 after a modest 1.9% increase in FY2024.
  • The stock's 1-year return of 8.8% lagged the S&P 500 benchmark return of 16.8%.

What Berkshire Hathaway does

Based in Omaha, Nebraska, Berkshire Hathaway Inc. is a conglomerate engaged in diverse sectors. Its insurance segment provides property, casualty, life, accident, and health insurance, as well as reinsurance solutions. The company operates extensive freight and passenger railroad systems across North America. In utilities and energy, it generates, transmits, stores, and distributes electricity from natural gas, coal, nuclear, and renewables, alongside natural gas pipelines and infrastructure. Berkshire Hathaway also manufactures consumer and industrial goods, including aerospace components, specialty chemicals, flooring, roofing, apparel, footwear, and housing products, while operating retail, distribution, and quick-service restaurant operations.

Growth and profitability

Berkshire Hathaway recorded a 5-year revenue CAGR of 8.6% from FY2020 to FY2025. Annual revenue grew from $354.64B in FY2021 to $371.44B in FY2025, after declining 14.8% in FY2022 to $302.09B and rebounding 20.7% in FY2023 to $364.48B. Operating margin was 31.5% in FY2021, shifting to 12.4% in FY2022, 13.2% in FY2023, 16.0% in FY2024, and 15.9% in FY2025. Net income stood at $66.97B in FY2025, down from $89.00B in FY2024 and net income of -$22.82B in FY2022. For the latest quarter ending June 30, 2026, quarterly revenue grew 10.0% year-over-year, while quarterly earnings expanded by 107.8%.

BRK-B income statement →

Balance sheet and cash flow

As of June 30, 2026, Berkshire Hathaway reported $365.51B in cash and short-term investments against $129.37B in total debt, creating a net cash balance of $236.14B. Total assets reached $1.26T against shareholders' equity of $750.18B. The company maintained a current ratio of 7.29 and a debt-to-equity ratio of 0.17. In FY2025, capital expenditures totaled $20.93B, and the 5-year share count change was -4.4%.

BRK-B balance sheet →

Valuation and performance

Trading at $532.02 as of October 16, 2026, Berkshire Hathaway has a market capitalization of $1.14T and an enterprise value of $1.18T. Its trailing P/E of 13.4x sits below the 14.2x median of its S&P 500 Financial Services peers. However, its forward P/E of 22.7x trades at a premium to the peer median of 12.2x. The price-to-sales ratio of 3.0x compares to the peer median of 3.1x. Over the past year, the stock returned 8.8% compared to 16.8% for the S&P 500 (SPY), while its 5-year return of 87.2% outpaced the S&P 500 return of 83.0%.

BRK-B key metrics →

What analysts expect

Wall Street coverage consists of 2 Strong Buy and 2 Hold ratings, with no Buy, Sell, or Strong Sell recommendations. The mean price target of $547.67 represents a 2.9% premium over the last close of $532.02. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $22.42 and revenue of $391.81B. For the following fiscal year, 3 analysts project revenue of $424.82B and EPS of $22.22. Over the last four quarters, the company beat EPS estimates 3 times.

BRK-B forecast and price target →

Key risks and what to watch

  • Annual net income has shown substantial volatility, moving from -$22.82B in FY2022 to $96.22B in FY2023 and $66.97B in FY2025.
  • Analyst consensus estimates project EPS to decline 0.9% in the next fiscal year to $22.22.
  • Capital expenditures were elevated at $20.93B in FY2025, which can weigh on free cash flow generation.

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-B AI stock analysis

This page is an AI-written research summary of Berkshire Hathaway Inc. (BRK-B). 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-B income statement, BRK-B balance sheet, BRK-B key metrics, BRK-B analyst forecast, BRK-B chart. See the BRK-B stock overview for the latest quote and news.

BRK-B AI stock analysis FAQ

What is Berkshire Hathaway's cash position?

As of June 30, 2026, Berkshire Hathaway held $365.51B in cash and short-term investments, with a net cash position of $236.14B after accounting for $129.37B in total debt.

How fast is Berkshire Hathaway growing?

Revenue expanded at an 8.6% CAGR between FY2020 and FY2025. In the quarter ending June 30, 2026, quarterly revenue increased 10.0% year-over-year.

What is the Wall Street price target for BRK-B?

The consensus mean price target is $547.67, which sits 2.9% above the last closing price of $532.02 recorded on October 16, 2026.

How does Berkshire Hathaway's valuation compare to sector peers?

Berkshire Hathaway trades at a trailing P/E of 13.4x, below the S&P 500 Financial Services peer median of 14.2x, but its forward P/E of 22.7x exceeds the peer median of 12.2x.

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