BRK-B · 10-Q · 2026Q2 · Full report
Investment Gains and Tax Rate
BERKSHIRE HATHAWAY INC · 2026-08-10 · Importance 69 · Surprise 64 · No source text
Pre-tax investment gains were $16.077 billion in the second quarter and $14.472 billion in the first six months of 2026, compared with $6.364 billion and a $71 million loss, respectively, in 2025. Net unrealized equity-security gains were $15.6 billion in the second quarter and $12.8 billion in the first six months, while taxable gains on securities sold were $2.3 billion and $9.5 billion. The effective income tax rate was 21.0% in both 2026 periods, versus 21.7% in the second quarter and 14.9% in the first six months of 2025, with income taxes and noncontrolling interests of $3.393 billion and $3.028 billion.
Key facts
- Net earnings attributable to Berkshire shareholders were $35.8 billion for the first six months of 2026 and included after-tax investment gains of approximately $11.4 billion. source
- After-tax other earnings increased $1.2 billion in the second quarter and $2.5 billion in the first six months of 2026 compared to 2025 source
- Net earnings attributable to Berkshire shareholders for the second quarter of 2026: $25,667 million source
- Net earnings attributable to Berkshire shareholders for the first six months of 2026: $35,773 million source
- Pre-tax investment unrealized gains were $15.6 billion in the second quarter and $12.8 billion in the first six months of 2026. source
- Taxable investment gains on equity securities sold were gains of $2.3 billion in the second quarter and $9.5 billion in the first six months of 2026. source
- Net earnings from investment gains (losses) were $12,684 million in the second quarter and $11,444 million in the first six months of 2026. source
- After-tax equity method earnings increased $27 million in the second quarter and $66 million in the first six months of 2026 compared to 2025 due to increased earnings from Kraft Heinz, partially offset by lower earnings from Occidental and Berkadia. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +16.3% | Net earnings attributable to Berkshire shareholders were $35.8 billion for the first six months of 2026 and included after-tax investment… |
| net_income | positive | realized | +13.6% | Taxable investment gains on equity securities sold were gains of $2.3 billion in the second quarter and $9.5 billion in the first six… |
| net_income | positive | realized | +3.6% | After-tax other earnings increased $1.2 billion in the second quarter and $2.5 billion in the first six months of 2026 compared to 2025 |
| assets | positive | realized | +1.0% | Pre-tax investment unrealized gains were $15.6 billion in the second quarter and $12.8 billion in the first six months of 2026. |
| net_income | positive | realized | — | Net earnings attributable to Berkshire shareholders for the first six months of 2026: $35,773 million |