Berkshire Hathaway FY2025 Second Quarter Earnings Preview

Market Expectations   

TradingKey - The Q2 2025 earnings report for Berkshire Hathaway is expected to be released on August 2. Below are the market expectations for Berkshire Hathaway’s Q2 2025 revenue and earnings per share (EPS):

· Revenue Expectation: Berkshire Hathaway’s total revenue for Q2 2025 is projected to reach $98.5 billion, a 5.2% increase compared to $93.65 billion in Q2 2024, potentially driven by insurance underwriting profits and investment income.

· EPS Expectation: Berkshire Hathaway’s earnings per share (EPS) for Q2 2025 is expected to be $5.24, a 2.6% decrease from $5.38 in Q2 2024. 

Key Investor Focus Areas

Operating Profit: Operating profit is the best indicator for assessing the health of Berkshire Hathaway’s core businesses. Investors should focus on whether it meets expectations and the performance of different business segments, particularly the insurance and railroad businesses.

Insurance Business Performance: The insurance business is a major revenue source for Berkshire Hathaway. Investors should pay close attention to underwriting profits and investment income. Recent analyses suggest that underwriting profits are expected to remain strong but may be impacted by natural disaster claims.

 Cash Reserves and Capital Allocation: As of Q1 2025, Berkshire Hathaway’s cash reserves reached a record high of $333.3 billion. Investors should monitor how this cash is utilized, including potential large-scale stock buybacks, new acquisition opportunities, or further adjustments to the investment portfolio.

Greg Abel’s Strategic Impact: With Greg Abel set to succeed Warren Buffett as CEO by the end of the year, investors will closely watch his capital allocation strategies and vision for the company’s future, especially amid heightened economic uncertainty. Abel may prioritize stable cash flow investments in energy and infrastructure.

Investment Portfolio Adjustments: Changes in Berkshire Hathaway’s investment portfolio, particularly its holdings in companies like Apple and Bank of America, as well as any new investments, will be another key focus.

Get Started