BRK-B AI Stock Analysis – Buy, Hold, or Avoid?
Berkshire Hathaway Inc. (BRK-B)
Berkshire Hathaway (BRK-B) offers a fundamentally robust and fairly valued long-term investment, but short-term technical weakness and cautious sentiment warrant patience. While the company’s diversified business model, strong liquidity, and disciplined management support its defensive appeal, current bearish technicals and moderate risk from leadership transition and insurance liabilities temper near-term upside. Investors should consider holding or accumulating on weakness, with the best risk/reward profile for long-term horizons.
Fundamentals
Berkshire Hathaway (BRK-B) demonstrates a robust and resilient fundamental profile, marked by consistent revenue growth, strong profitability, and disciplined cost management. Recent quarters show sound execution with earnings stability despite macroeconomic fluctuations, while the company's diversified conglomerate model continues to generate high-quality cash flows and bolster long-term value.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
4.40% YoY
Q1 2026
Net Income
119.55% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 93.7B | 94.2B | 95.0B | 92.5B | 89.7B | 94.9B | 93.0B | 93.7B |
| Revenue Growth YoY | +4.40% | -0.72% | +2.13% | -1.22% | -0.16% | +1.65% | -0.23% | +1.24% |
| Net Income | 10.1B | 19.2B | 30.8B | 12.4B | 4.6B | 19.7B | 26.3B | 30.3B |
| Net Income Growth YoY | +119.55% | -2.51% | +17.31% | -59.24% | -63.76% | -47.59% | +305.62% | -15.49% |
| EPS | $4.68 | $8.90 | $14.28 | $5.73 | $2.13 | $9.13 | $12.18 | $14.08 |
| EPS Growth YoY | +119.72% | -2.52% | +17.24% | -59.30% | -63.78% | -47.41% | +307.14% | -14.77% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.80% | 23.01% | 24.62% | 24.12% | 22.73% | 27.80% | 21.84% | 21.84% |
| Operating Margin | 16.07% | 13.78% | 17.55% | 16.84% | 14.17% | 17.28% | 13.96% | 15.66% |
| Net Margin | 10.79% | 20.37% | 32.43% | 13.37% | 5.13% | 20.75% | 28.23% | 32.40% |
| Return on Equity (ROE) | 1.39% | 2.68% | 4.41% | 1.85% | 0.70% | 3.03% | 4.17% | 5.04% |
| Return on Assets (ROA) | 0.89% | 1.74% | 2.78% | 1.18% | 0.44% | 1.90% | 2.56% | 3.07% |
Technical Analysis
BRK-B is currently in a strong bearish trend with price trading below all major moving averages and a death cross in effect. The stock is in a topping phase with increasing volatility, indicating potential distribution and cautious outlook near the resistance zone around the 50-day SMA level. Momentum is neutral to fading, with RSI in the middle range and ADX signaling weak trend strength, suggesting limited directional conviction at present.
No extreme reading
Mixed signals
Range-bound market
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Berkshire Hathaway (BRK-B) demonstrates a robust and resilient fundamental profile, marked by consistent revenue growth, strong profitability, and disciplined cost management. Recent quarters show sound execution with earnings stability despite macroeconomic fluctuations, while the company's diversified conglomerate model continues to generate high-quality cash flows and bolster long-term value.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$5.25
Estimated
$5.08
Surprise
+$0.17
Surprise %
+3.35%
Revenue
Actual
$93.68B
Estimated
$92.91B
Surprise
+$764.65M
Surprise %
+0.82%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $5.25 | $4.73 | $14.27 | $5.73 | $4.47 | $6.73 | $4.68 | $5.38 |
| EPS (Estimated) | $5.08 | $5.51 | $5.39 | $5.04 | $4.63 | $4.22 | $4.51 | $4.81 |
| EPS Surprise | +$0.17 | -$0.78 | +$8.88 | +$0.69 | -$0.16 | +$2.51 | +$0.17 | +$0.57 |
| % Diff | +3.3% | -14.2% | +164.7% | +13.7% | -3.5% | +59.5% | +3.8% | +11.9% |
| Revenue | ||||||||
| Revenue (Actual) | $93.68B | $100.67B | $94.97B | $98.88B | $83.29B | $101.47B | $113.51B | $117.51B |
| Revenue (Estimated) | $92.91B | $96.98B | $99.18B | $82.22B | $81.59B | $89.86B | $90.48B | $81.88B |
| Revenue Surprise | +$764.65M | +$3.69B | -$4.2B | +$16.66B | +$1.7B | +$11.61B | +$23.03B | +$35.63B |
| % Diff | +0.8% | +3.8% | -4.2% | +20.3% | +2.1% | +12.9% | +25.5% | +43.5% |
Valuation
Berkshire Hathaway (BRK-B) is currently trading at valuation multiples that suggest a fair to modest undervaluation compared to its historical norms and financial sector peers. Analyst consensus price targets indicate upside potential around 10-20%, supported by steady earnings growth and strong cash positions, despite recent mixed revenue growth signals. The stock benefits from sound financial health and diversified operations but faces a moderate risk premium due to cyclical economic factors and sector dynamics.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 25.57 | 14.12 | 8.81 | 21.19 | 62.40 | 12.41 | 9.45 | 7.19 |
| Price to Sales | 11.04 | 11.51 | 11.43 | 11.34 | 12.81 | 10.30 | 10.67 | 9.32 |
| Price to Book | 1.42 | 1.51 | 1.55 | 1.57 | 1.76 | 1.51 | 1.58 | 1.45 |
| Enterprise Value to EBITDA | 56.12 | 70.85 | 57.98 | 56.85 | 78.04 | 54.53 | 67.57 | 53.42 |
| Enterprise Value to Revenue | 11.97 | 12.43 | 12.21 | 11.62 | 13.90 | 11.31 | 11.77 | 10.19 |
Sentiment & Analyst Ratings
Berkshire Hathaway's market sentiment is cautiously optimistic following the transition to CEO Greg Abel, who is emphasizing continuity and disciplined capital deployment. Analysts present a mixed view, reflected in a Hold consensus but with some bullish price targets highlighting potential upside. The company's strong cash position and improving operational earnings bolster confidence, though recent stock performance has been subdued relative to broader market gains.
Analyst Recommendations
Risk Assessment
Berkshire Hathaway exhibits strong financial health with exceptional liquidity and conservative leverage, underpinning a solid investment foundation. The transition to new leadership and significant wildfire liabilities present notable risks, though the company's diversified operations offer resilience. Market sentiment remains cautiously optimistic with moderate upside potential amidst valuation concerns and macroeconomic uncertainties.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q1 2026
Quick Ratio
Latest Quarter: Q1 2026
Debt-to-Equity
Latest Quarter: Q1 2026
Debt-to-Assets
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 4.27 | 6.75 | 5.89 | 7.72 | 6.35 | 5.94 | 5.85 | 6.81 |
| Quick Ratio | 4.06 | 6.41 | 5.59 | 7.31 | 6.02 | 5.61 | 5.53 | 6.39 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.20 | 0.19 | 0.22 | 0.19 | 0.21 | 0.22 | 0.22 | 0.21 |
| Debt-to-Assets | 0.12 | 0.11 | 0.12 | 0.11 | 0.12 | 0.12 | 0.12 | 0.11 |
Liquidity Assessment
Current Ratio: 4.27(Strong)
Quick Ratio: 4.06(Strong)
The company has strong liquidity with sufficient short-term assets to cover liabilities.
Solvency Assessment
Debt-to-Equity: 0.20(Low)
Debt-to-Assets: 0.12(Low)
The company has conservative debt levels, indicating low financial risk and strong long-term solvency.
Frequently Asked Questions about BRK-B
AI Answers: Common Questions About BRK-B
Get AI-powered answers to the questions investors ask most about Berkshire Hathaway Inc.
BRK-B is fairly valued with a P/E of 14.16 (below sector average) and price-to-book just under the decade median, offering 10-20% upside per analyst consensus. However, technicals are bearish and the stock is trading below key moving averages, so it may be prudent to wait for a better entry or a reversal signal before buying aggressively.
Unless your thesis has changed or you need to reduce risk, there is no strong reason to sell BRK-B now. Fundamentals remain robust, valuation is reasonable, and long-term prospects are intact, though short-term technicals suggest caution for new buys rather than forced selling.
The biggest risks are leadership transition (Greg Abel replacing Buffett), wildfire liabilities from the energy segment, and potential margin pressure if macro conditions worsen. Debt-to-equity is low at 0.20 and liquidity is strong (current/quick ratio >4), but contingent liabilities and market volatility could impact near-term performance.
Technical resistance is at 480-491, with support at 470 and 455 (52-week low); a breakdown below 455 could trigger further downside. Analyst price targets range from the low $470s to $570, with consensus around 7-10% upside from current levels.
BRK-B is trading at a P/E of 14.16 (below sector average), price-to-sales and price-to-book are modestly below sector norms, and EV/EBITDA is elevated but justified by cash flow quality. Overall, the stock is fairly valued with a slight undervaluation relative to its quality and sector peers.
Berkshire is fundamentally strong, with gross margin near 29%, operating margin above 16%, steady revenue growth, and a fortress balance sheet (current/quick ratio >4, debt-to-equity 0.20). Earnings are high quality and diversified, with resilient insurance and utility businesses.
Technically, the stock is bearish: price is below all major SMAs, a death cross is confirmed, RSI is neutral at 51, and support sits at 455. No bullish reversal patterns are present, so further downside is possible if support fails.
Key catalysts include deployment of the company’s large cash reserves (e.g., major acquisitions or buybacks), upcoming earnings reports (especially insurance and utilities), and successful execution by new CEO Greg Abel. Macro events such as interest rate changes and regulatory developments could also impact performance.
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