Berkshire Hathaway (BRK.A) Q2 Earnings Revived Attention, Is It Still Below Fair Value?

Q2 2026 earnings put Berkshire Hathaway stock back in focus

Berkshire Hathaway (BRK.A) drew fresh attention after reporting Q2 2026 results on August 8, with revenue of US$101.8b and net income of US$25.7b for the quarter.

For the first half of 2026, Berkshire Hathaway reported revenue of US$195.5b and net income of US$35.8b. Basic earnings per share from continuing operations reached US$24,889 for the six month period.

See our latest analysis for Berkshire Hathaway.

The latest earnings release and Berkshire Hathaway’s heavier equity buying under new CEO Greg Abel have kept the stock in focus, even as the share price slipped 0.8% on the day and 3.1% over the past week. Despite that short term weakness, a 1 year total shareholder return of 5.3% and a 3 year total shareholder return of 41.0% point to steadier gains over time rather than strong current momentum.

If Berkshire Hathaway’s recent capital deployment has you thinking about where else capital might be working hard, it could be a good moment to scan 20 top founder-led companies

The recent pullback in Berkshire Hathaway after strong Q2 numbers raises a simple question. Are investors cooling on the story, or has sentiment moved further than the underlying business and current valuation suggest?

Most Popular Narrative: 19.9% Undervalued

The most followed valuation narrative currently places Berkshire Hathaway’s fair value at $943,785.74 per share, compared with a last close of $755,570.01. That gap is what has caught investors’ attention and sets the stage for a closer look at how this view is built.

Berkshire Hathaway's combination of financial strength, disciplined investment approach, and strong leadership is highlighted as a compelling investment profile. Based on the company's historical performance and the outlook described in this narrative, a net inflation growth of 12-15% in the share price is presented as a possible outcome. Investors who are willing to adopt a long-term perspective and who focus on the value of quality companies may find Berkshire Hathaway to be an investment that aligns with those preferences.

Read the complete narrative.

Curious what justifies a fair value that sits well above today’s price? This narrative leans heavily on balance sheet strength, disciplined capital allocation, and long term profitability targets. It focuses on sustained margins and reinvestment rather than short term gains. The exact assumptions are where the story becomes more detailed.

Result: Fair Value of $943,785.74 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if results disappoint, Berkshire Hathaway’s reliance on insurance and rail earnings, along with any shift in capital allocation under Greg Abel, could challenge this undervalued narrative.

Find out about the key risks to this Berkshire Hathaway narrative.

Next Steps

With Berkshire Hathaway showing both strong recent figures and a mixed sentiment around future risks and rewards, it makes sense to look at the underlying data yourself and move quickly to shape your own view. To weigh up both sides in one place, start with 3 key rewards and 1 important warning sign

Looking for more investment ideas beyond Berkshire Hathaway?

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• Scan for potential value by reviewing companies that show strong fundamentals yet trade on what may look like a discount through the 50 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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