BRK-B · 10-Q · 2026Q1 · Full report
Service Group Growth (TTI, Aviation)
BERKSHIRE HATHAWAY INC · 2026-05-04 · Importance 60 · Surprise 40 · No source text
Service group revenues rose 17.1% to $6,434 million in Q1 2026, led by TTI (revenues up 26.2%), aviation services (+11.8%) and IPS (+23.7%). TTI’s revenue growth reflected accelerating customer demand, inventory cost‑based price increases and customers accelerating purchases in response to potential further price increases and supply chain concerns, including extended inventory order lead times. Management cautions that inventory cost and supply chain uncertainties could cause downward gross margin pressure as the year progresses, even as near‑term demand has been pulled forward. Service group pre‑tax earnings rose 21.1%, driven mainly by TTI and aviation services, but margin sustainability depends on inventory cost moves and supply chain normalization.
Key facts
- Service and retailing revenues were $34,170 million in Q1 2026 and $32,742 million in Q1 2025, an increase of 4.4%. source
- Manufacturing pre-tax earnings were $3,059 million in Q1 2026 and $2,716 million in Q1 2025; service and retailing pre-tax earnings were $1,175 million in Q1 2026 and $1,290 million in Q1 2025. source
- Service group revenues increased $941 million (17.1%) in Q1 2026 versus 2025; revenue increases primarily from TTI (26.2%), aviation services (11.8%) and IPS (23.7%). source
- Service group pre-tax earnings increased $137 million (21.1%) in Q1 2026 versus 2025, primarily attributable to TTI and aviation services. source
- TTI revenue increase reflected customer demand, favorable FX translation and inventory cost-based price increases; TTI revenues increased 26.2% year over year. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +2.3% | Service and retailing revenues were $34,170 million in Q1 2026 and $32,742 million in Q1 2025, an increase of 4.4%. |
| revenue | positive | realized | +1.5% | Service group revenues increased $941 million (17.1%) in Q1 2026 versus 2025; revenue increases primarily from TTI (26.2%), aviation… |
| operating_income | positive | realized | +0.5% | Manufacturing pre-tax earnings were $3,059 million in Q1 2026 and $2,716 million in Q1 2025; service and retailing pre-tax earnings were… |
| operating_income | positive | realized | +0.2% | Service group pre-tax earnings increased $137 million (21.1%) in Q1 2026 versus 2025, primarily attributable to TTI and aviation services. |
| operating_income | negative | realized | -0.2% | Manufacturing pre-tax earnings were $3,059 million in Q1 2026 and $2,716 million in Q1 2025; service and retailing pre-tax earnings were… |
| revenue | positive | realized | — | TTI revenue increase reflected customer demand, favorable FX translation and inventory cost-based price increases; TTI revenues increased… |