Is Berkshire Hathaway (BRK.B) a Buy, Sell, or Hold in 2026?

The question of whether Berkshire Hathaway (BRK.B) merits a "Buy," "Sell," or "Hold" in 2026 hinges on a nuanced interplay of earnings momentum, revenue growth expectations, and valuation dynamics. As the investment world contemplates the transition of leadership following Warren Buffett's retirement, the stock's trajectory will depend on its ability to navigate macroeconomic headwinds while leveraging its structural advantages.

Earnings Estimate Revisions: A Slight Upward Trend

Berkshire Hathaway's recent Zacks Rank upgrade to #2 (Buy) underscores a modest but meaningful improvement in earnings expectations. The Zacks Consensus Estimate for fiscal 2025 (ending December 2025) stands at $20.68 per share, with no year-over-year change, but the consensus has increased by 0.7% over the past three months. This upward revision reflects confidence in the company's underlying business, particularly its insurance segment and investment income, which drove a 34% year-over-year surge in operating earnings to $13.49 billion in late 2025.

However, the forward-looking picture is more cautious. For the first quarter of 2026, analysts project earnings of $4.89 per share, with the consensus estimate for 2026 earnings declining by 2.2% in the past 30 days. This suggests that while short-term momentum is positive, long-term optimism is tempered by uncertainties, including the potential drag from interest rate cuts and climate-related liabilities in its utility operations as reported in recent analysis.

Revenue Growth Projections: Modest Expansion Amid Defensive Posturing

Analyst projections for 2026 revenue growth are muted. The median price target of $510.00 implies a 1.1% upside from the current price of $504.37, with one analyst forecasting revenue of $560.58 billion for the year-a modest increase from the projected 2025 revenue of $415.78 billion as projected by Zacks. This cautious outlook aligns with Berkshire's defensive strategy, characterized by the aggressive liquidation of its largest equity holdings and a cash hoard of $381.7 billion.

While this cash position provides flexibility, it also raises questions about the company's ability to deploy capital effectively in a low-yield environment. The projected 7% earnings growth rate for 2026-a recovery from a 7.7% decline in 2025-further highlights the challenges of sustaining growth in a post-Buffett era. Analysts have split their ratings between "Buy" and "Hold", with no "Sell" recommendations, reflecting a consensus that Berkshire's diversified business model offers stability but limited upside.

Valuation Metrics: A Mixed Picture

Berkshire's valuation metrics suggest a stock that is neither undervalued nor overvalued. The forward P/E ratio of 22.88 is elevated relative to its trailing P/E of 15.72 as reported by Full Ratio, but it remains below the 10-year historical average of 20.42 according to historical data. The EV/EBITDA ratio of 14.95 as of December 2025 as noted in Seeking Alpha analysis is also in line with its 12-month average of 15.30 according to the same source, indicating a stable but unexciting valuation profile.

The PEG ratio, however, tells a different story. At 3.16 according to Zacks data, it exceeds the 2.06 industry average for the Insurance - Property and Casualty sector as reported by Zacks, suggesting that the stock is trading at a premium to its earnings growth prospects. This disconnect between valuation and growth expectations is a red flag for investors seeking value-driven opportunities. Yet, the company's robust cash reserves and diversified operations spanning railroads, utilities, and manufacturing-provide a buffer against market volatility as detailed in recent analysis, which may justify the premium for risk-averse investors.

Conclusion: A "Hold" with Cautious Optimism

Berkshire Hathaway's investment case in 2026 is best characterized as a "Hold." The Zacks Rank upgrade and recent earnings momentum offer a glimmer of optimism, but the company's defensive posture, coupled with macroeconomic risks like interest rate cuts and climate liabilities, limits upside potential. The valuation metrics, while not egregious, suggest that the market is pricing in a degree of caution.

For investors with a long-term horizon, Berkshire's fortress-like balance sheet and diversified business model remain compelling. However, those seeking aggressive growth may find the stock's modest revenue projections and elevated PEG ratio unattractive. As the company transitions to new leadership, the key will be monitoring its capital allocation decisions and the performance of its core businesses. Until then, patience-and a watchful eye on February's earnings report-is warranted.