Berkshire Hathaway Q1 results: Operating profit slumps by 14%, flags tariff risks

Warren Buffett’s Berkshire Hathaway reported a sharp 14% drop in operating profit for the first quarter, underscoring the challenges facing the conglomerate’s sprawling portfolio of businesses. The results, released Saturday, also came with a warning: growing geopolitical tensions and trade tariffs could further weigh on the firm’s profitability.

Operating profit for the first quarter fell to $9.64 billion, down from $11.22 billion a year earlier. These earnings include results from Berkshire’s fully-owned insurance and railroad operations, among others.

Currency movements also hurt the bottom line. The firm posted a foreign exchange loss of approximately $713 million, reversing a $597 million gain recorded during the same period last year.

Berkshire said it earned $4.6 billion, or $3,200 per Class A share, in the first quarter. That's down from $12.7 billion, or $8,825 per Class A share, last year.

Berkshire’s cash hoard ballooned to a fresh record during the first quarter, climbing to more than $347 billion from around $334 billion at the end of 2024.

In its filing, Berkshire cited a “challenging environment” influenced by tariffs introduced under President Donald Trump, along with other global uncertainties. “We are currently unable to reliably predict the potential impact on our businesses, whether through changes in product costs, supply chain costs and efficiency, and customer demand for our products and services,” the company said.

Berkshire’s equity holdings also remained highly concentrated. As of March 31, 69% of the fair value of its portfolio was tied to five companies: American Express, Apple, Bank of America, Chevron, and Coca-Cola. The firm held 151.6 million shares of American Express, representing a 21.6% stake in the financial services giant.

Additionally, Berkshire reported \$1.1 billion in insurance losses from the Southern California wildfires, reflecting the ongoing pressures within the industry.