Berkshire Hathaway Reports Significant Decline in Q4 Operating Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 28 2026
0mins
Source: CNBC
- Operating Earnings Decline: Berkshire Hathaway reported Q4 operating earnings of $10.2 billion, down 29% year-over-year, primarily due to weakness in its insurance business, highlighting challenges in its diversified operations.
- Insurance Business Losses: Insurance underwriting profits plummeted 54% to $1.56 billion, while investment income fell nearly 25% to $3.1 billion, reflecting pressures in the insurance market and its impact on overall profitability.
- Annual Overall Earnings Drop: Total overall earnings for 2025 fell to $66.97 billion from $89 billion the previous year, indicating volatility in investment performance and potential implications for shareholders.
- Cash Reserves Slightly Decrease: Despite no stock buybacks, Berkshire's cash reserves dipped from $381.6 billion to $373.3 billion, demonstrating a cautious approach to capital allocation and reflecting its strategy in navigating market fluctuations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy RTX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on RTX
Wall Street analysts forecast RTX stock price to rise
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 189.710
Low
168.00
Averages
195.77
High
215.00
Current: 189.710
Low
168.00
Averages
195.77
High
215.00
About RTX
RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers. The Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RTX Secures $3.81B F-35 Engine Contract Modification
- Significant Contract Value: RTX has secured a $3.81 billion fixed-price incentive contract modification for the production of F135 engines for F-35 jets, with work expected to be completed by March 2028, indicating strong demand and market position in the defense sector.
- Diverse Funding Sources: The funding for this contract includes $220 million from FY24 Navy, $210 million from Air Force, $800 million from FY25 Navy, $730 million from Air Force, $380 million from F-35 partner funds, and $1.47 billion from FMS funds, ensuring financial stability for the project.
- Contracting Authority: The Naval Air Systems Command is the contracting activity, reflecting the U.S. government's trust in RTX for defense projects, which also provides a stable revenue stream for the company.
- Optimistic Market Outlook: With increasing global defense spending, RTX's role in missile production and the F-35 program is becoming increasingly critical, expected to drive future growth potential and shareholder returns.
See More
Raytheon Unit Secures $125M Contract for Simulation Tools
- Significant Contract Value: RTX's BBN Technologies has secured a $125 million contract to provide simulation and optimization tools for joint deployment and distribution analysis, showcasing the company's strong capabilities in defense technology.
- Defined Performance Period: The contract spans from April 1, 2026, to March 31, 2031, ensuring a long-term revenue stream and laying the groundwork for future projects.
- Clear Funding Source: Working capital for FY2026 will be allocated for individual task orders, indicating efficient resource allocation and reflecting a close partnership with the U.S. Transportation Command.
- Optimistic Market Outlook: As U.S. defense spending continues to rise, RTX's success in securing defense contracts will further enhance its market position and potentially drive future business growth.
See More
Swarmer CEO Discusses Company's Competitive Edge
- Data-Driven Success Model: Swarmer CEO Alex Fink emphasizes that data collection and AI model improvement are the company's core competitive advantages, which are expected to drive long-term success in the market, especially against large defense firms.
- Market Position and Backlog: With a current market capitalization of under $500 million and a contracted backlog of $16.3 million, Swarmer's rapid growth potential has garnered market attention despite the vast valuation gap with Lockheed Martin and RTX.
- Software Interoperability Advantage: Fink highlights that Swarmer's software is designed to work across multiple hardware platforms, allowing for a vendor-agnostic model that distinguishes it from traditional defense models that often lock customers into a single ecosystem.
- Drone Control Technology: Swarmer focuses on developing software that enables a single operator to control dozens or hundreds of drones simultaneously, and despite facing structural advantages from established defense contractors, it has successfully executed over 100,000 missions since its first combat deployment in Ukraine.
See More
Geopolitical Tensions Drive Increased Military Spending
- Increased Military Spending: Heightened geopolitical tensions are prompting governments to boost investments in military development, with global defense spending projected to reach a record $2 trillion in 2026, indicating a rising priority on national security.
- Market Response: As of the afternoon of March 27, 2026, stock prices of defense-related companies have generally risen, reflecting investor optimism regarding defense spending, which could drive long-term growth for these firms.
- Policy Shifts: Governments are reassessing their defense strategies and increasing budgets to address potential threats, a policy shift that not only affects military procurement but could also have profound implications for related supply chains.
- Strengthened International Cooperation: With rising military expenditures, there is an acceleration of military cooperation and technology sharing among nations, particularly in high-tech weaponry and cybersecurity, potentially reshaping the global military landscape.
See More
Geopolitical Tensions Drive Increased Military Spending
- Increased Military Spending: Geopolitical tensions are prompting governments to ramp up military development expenditures, which is expected to significantly boost defense budgets in the coming years and drive growth in related industries.
- AI and Wealth Creation: The rapid advancement of artificial intelligence has sparked discussions about the potential for creating the world's first trillionaire, reflecting the tech sector's immense potential and possibly attracting investor interest in related companies.
- Key Technology Company: A recent report highlights a little-known company labeled as an 'Indispensable Monopoly' that provides critical technology to both Nvidia and Intel, positioning it for significant competitive advantage in future market dynamics.
- Investment Recommendations: Although RTX was excluded from the Motley Fool analyst team's list of the 10 best stocks, the team's average return of 884% far exceeds the S&P 500's 179%, demonstrating the effectiveness of their investment strategy.
See More
Escalating Geopolitical Risks: Iran Threatens US Universities
- Iran's Escalating Threat: The IRGC has issued a direct threat against U.S. universities in neighboring countries, demanding that students and staff maintain a distance of at least one kilometer, categorizing these institutions as legitimate military targets, which poses significant risks to American educational investments in the region.
- U.S. Military Deployment: Specialized U.S. Marine Expeditionary Units have arrived in the Middle East, marking a significant shift in military posture, with the White House describing this deployment as a contingency measure to secure energy corridors and critical infrastructure, raising concerns about the potential for prolonged ground operations.
- Pakistani Vessels Granted Passage: Iran has agreed to allow 20 additional Pakistani-flagged ships to transit the Strait of Hormuz, with two ships permitted daily, providing crucial logistical support for Pakistani maritime trade amid ongoing regional tensions and showcasing a diplomatic breakthrough.
- Houthi Attacks on Israel: The Houthi group launched drone and missile strikes against Israel, exacerbating regional tensions and highlighting the ongoing volatility of the security landscape, which poses challenges for international efforts to prevent a broader conflict.
See More
RTX Secures $3.81B F-35 Engine Contract Modification
- Significant Contract Value: RTX has secured a $3.81 billion fixed-price incentive contract modification for the production of F135 engines for F-35 jets, with work expected to be completed by March 2028, indicating strong demand and market position in the defense sector.
- Diverse Funding Sources: The funding for this contract includes $220 million from FY24 Navy, $210 million from Air Force, $800 million from FY25 Navy, $730 million from Air Force, $380 million from F-35 partner funds, and $1.47 billion from FMS funds, ensuring financial stability for the project.
- Contracting Authority: The Naval Air Systems Command is the contracting activity, reflecting the U.S. government's trust in RTX for defense projects, which also provides a stable revenue stream for the company.
- Optimistic Market Outlook: With increasing global defense spending, RTX's role in missile production and the F-35 program is becoming increasingly critical, expected to drive future growth potential and shareholder returns.
See More
Raytheon Unit Secures $125M Contract for Simulation Tools
- Significant Contract Value: RTX's BBN Technologies has secured a $125 million contract to provide simulation and optimization tools for joint deployment and distribution analysis, showcasing the company's strong capabilities in defense technology.
- Defined Performance Period: The contract spans from April 1, 2026, to March 31, 2031, ensuring a long-term revenue stream and laying the groundwork for future projects.
- Clear Funding Source: Working capital for FY2026 will be allocated for individual task orders, indicating efficient resource allocation and reflecting a close partnership with the U.S. Transportation Command.
- Optimistic Market Outlook: As U.S. defense spending continues to rise, RTX's success in securing defense contracts will further enhance its market position and potentially drive future business growth.
See More
Swarmer CEO Discusses Company's Competitive Edge
- Data-Driven Success Model: Swarmer CEO Alex Fink emphasizes that data collection and AI model improvement are the company's core competitive advantages, which are expected to drive long-term success in the market, especially against large defense firms.
- Market Position and Backlog: With a current market capitalization of under $500 million and a contracted backlog of $16.3 million, Swarmer's rapid growth potential has garnered market attention despite the vast valuation gap with Lockheed Martin and RTX.
- Software Interoperability Advantage: Fink highlights that Swarmer's software is designed to work across multiple hardware platforms, allowing for a vendor-agnostic model that distinguishes it from traditional defense models that often lock customers into a single ecosystem.
- Drone Control Technology: Swarmer focuses on developing software that enables a single operator to control dozens or hundreds of drones simultaneously, and despite facing structural advantages from established defense contractors, it has successfully executed over 100,000 missions since its first combat deployment in Ukraine.
See More
Geopolitical Tensions Drive Increased Military Spending
- Increased Military Spending: Heightened geopolitical tensions are prompting governments to boost investments in military development, with global defense spending projected to reach a record $2 trillion in 2026, indicating a rising priority on national security.
- Market Response: As of the afternoon of March 27, 2026, stock prices of defense-related companies have generally risen, reflecting investor optimism regarding defense spending, which could drive long-term growth for these firms.
- Policy Shifts: Governments are reassessing their defense strategies and increasing budgets to address potential threats, a policy shift that not only affects military procurement but could also have profound implications for related supply chains.
- Strengthened International Cooperation: With rising military expenditures, there is an acceleration of military cooperation and technology sharing among nations, particularly in high-tech weaponry and cybersecurity, potentially reshaping the global military landscape.
See More
Geopolitical Tensions Drive Increased Military Spending
- Increased Military Spending: Geopolitical tensions are prompting governments to ramp up military development expenditures, which is expected to significantly boost defense budgets in the coming years and drive growth in related industries.
- AI and Wealth Creation: The rapid advancement of artificial intelligence has sparked discussions about the potential for creating the world's first trillionaire, reflecting the tech sector's immense potential and possibly attracting investor interest in related companies.
- Key Technology Company: A recent report highlights a little-known company labeled as an 'Indispensable Monopoly' that provides critical technology to both Nvidia and Intel, positioning it for significant competitive advantage in future market dynamics.
- Investment Recommendations: Although RTX was excluded from the Motley Fool analyst team's list of the 10 best stocks, the team's average return of 884% far exceeds the S&P 500's 179%, demonstrating the effectiveness of their investment strategy.
See More
Escalating Geopolitical Risks: Iran Threatens US Universities
- Iran's Escalating Threat: The IRGC has issued a direct threat against U.S. universities in neighboring countries, demanding that students and staff maintain a distance of at least one kilometer, categorizing these institutions as legitimate military targets, which poses significant risks to American educational investments in the region.
- U.S. Military Deployment: Specialized U.S. Marine Expeditionary Units have arrived in the Middle East, marking a significant shift in military posture, with the White House describing this deployment as a contingency measure to secure energy corridors and critical infrastructure, raising concerns about the potential for prolonged ground operations.
- Pakistani Vessels Granted Passage: Iran has agreed to allow 20 additional Pakistani-flagged ships to transit the Strait of Hormuz, with two ships permitted daily, providing crucial logistical support for Pakistani maritime trade amid ongoing regional tensions and showcasing a diplomatic breakthrough.
- Houthi Attacks on Israel: The Houthi group launched drone and missile strikes against Israel, exacerbating regional tensions and highlighting the ongoing volatility of the security landscape, which poses challenges for international efforts to prevent a broader conflict.
See More
