This Earnings Season, Remember Warren Buffett’s Message That ‘Beating Expectations’ Is ‘Disgusting’ and ‘One of the Shames of Capitalism’

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':"";if(a){var r=n.promos.showYahooLogo?"":"yns-no-logo";a=a.replace("{notifOnboardBtnLabel}",n.promos.notifOnboardBtnLabel).replace("{notifOnboardMsg}",n.promos.notifOnboardMsg).replace("{subscriptionTopic}",n.promos.subscriptionTopic).replace("{noLogoClass}",r).replace("{promoLogo}",n.promos.promoLogo)}var s=t.newCount>n.panel.maxCount?t.newCount:"",c=n.panel.notificationCenterPath,l=c?"":R,u=n.panel.headerMsg?"":" "+R,d=c?H:"",p=void 0;t.count?p=t.markup:p='{emptyPanelMsg}'.replace("{emptyPanelMsg}",n.panel.emptyPanelMsg);return e=e.replace("{notifMarkup}",p).replace("{promoMarkup}",a).replace("{hideClass}",l).replace("{notifCenterLink}",c).replace("{paddingClass}",d).replace("{headerMsg}",n.panel.headerMsg).replace("{hideHeaderClass}",u).replace(/{notificationCenterNavMsg}/g,n.panel.notificationCenterNavMsg).replace(/{newCount}/g,s)}},{key:"render",value:function(e,t){var n=this;if(n._panelNode){var o=void 0,i=n._panelNode,a=void 0,r=void 0;switch(e){case"expanded_panel":o='{promoMarkup}{notifMarkup}',r=n._store.getNotifications(),a=n._generatePanelMarkup(o,r),i.innerHTML=a;break;case"error_panel":a=(o='{errorMsg}').replace("{errorMsg}",n._config.panel.errorMsg),i.innerHTML=a}t&&t()}else t&&t(new Error("No panel parent"))}},{key:"createPanelParentNode",value:function(e){e&&(e.innerHTML='',this._panelNode=document.getElementById(P))}},{key:"updateBadgeNode",value:function(e){if(e){var t=this._store.getNotifications().newCount,n=this._config.badge.maxCount;if(t){var o=t>n?n+"+":t;e.innerHTML=o}else e.innerHTML=""}}},{key:"addStyles",value:function(e){if(e&&"undefined"!=typeof window){var t=document.getElementById(this._config.panel.styleTagId);t||((t=document.createElement("style")).type="text/css",t.id=this._config.panel.styleTagId,t.innerText=e,document.head.appendChild(t))}}}]),e}(),j=function(){function e(t,n,o){E(this,e);var i=this;i._store=n,i._view=o,i._config=t;var 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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Oscar CierpialWed, February 25, 2026 at 5:36 PM GMT+1 4 min readAs Wall Street embraces earnings season, investors await the split-second alerts that determine a stock's immediate future, hoping that the securities they own release a beat and positive forward guidance. To many, this is a sign of a healthy, high-performing company. But to Warren Buffett, the deceptive way these "beats" are often manufactured is nothing short of "disgusting."In Berkshire Hathaway's (BRK.A) (BRK.B) 2022 shareholder letter, the Oracle of Omaha pulled back the curtain on what he calls one of the "shames of capitalism": the manipulation of operating earnings by managers who want to present a specific narrative to the buy-side audience.Micron Stock Trades Near Record High — Cash Out or Hold On?Microsoft Stock Just Flashed an Ultra-Rare Bullish Signal for Options TradersWestern Digital Is Selling Sandisk Stock. Should You?Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!As we navigate a market increasingly driven by hype — particularly in the artificial intelligence (AI) sector — Buffett’s warnings about "bold imaginative accounting" are a necessary reality check.The core of Buffett’s frustration isn't with the earnings themselves, but with the lack of integrity in how they are sometimes reported. While GAAP (generally accepted accounting principles) provides a standard, managers often favor adjusted operating earnings, which allow them to exclude certain costs to make the bottom line appear more attractive.Buffett is blunt about this practice: "It requires no talent to manipulate numbers: Only a deep desire to deceive is required." When a company "beats" an analyst's estimate by a penny through accounting maneuvers, it is heralded as a triumph. In reality, Buffett argues this is a form of dishonesty that misleads investors who are looking to buy into new companies.This critique extends to the culture of corporate leadership. He notes that this "tampering" is often viewed as "sophisticated" by CEOs, directors, and their advisors. Even reporters and analysts frequently embrace these manipulated figures without enough skepticism.Buffett believes this is a shame: The system creates a massive incentive for corporations to show they are making as much money as possible, sometimes at the expense of transparency.We see a modern variation of these concerns in today’s tech-heavy market. Artificial Intelligence has driven many companies to report substantial sums in their earnings. However, a closer look reveals a complex web of cross-investments.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,897.00 -23.00 (-0.33%)Dow Futures49,279.00 -252.00 (-0.51%)Nasdaq Futures25,018.00 -63.00 (-0.25%)Russell 2000 Futures2,659.20 -21.40 (-0.80%)VIX18.63 +0.70 (+3.90%)Gold5,199.90 +5.70 (+0.11%)Trending tickersNFLX Netflix, Inc. 84.59 +1.88 (+2.28%)XYZ Block, Inc. 54.53 +2.59 (+4.99%)DUOL Duolingo, Inc. 117.45 +5.80 (+5.19%)DELL Dell Technologies Inc. 121.45 -2.03 (-1.64%)CRWV CoreWeave, Inc. 97.63 -0.38 (-0.39%)PortfolioSign in to access your portfolioSign inTop gainersSEZL Sezzle Inc. 84.70 +22.08 (+35.26%)LMAT LeMaitre Vascular, Inc. 113.69 +22.31 (+24.41%)FA First Advantage Corporation 11.69 +2.17 (+22.79%)IONQ IonQ, Inc. 40.88 +7.29 (+21.70%)HPP Hudson Pacific Properties, Inc. 7.69 +1.33 (+20.91%)Top losersEOSE Eos Energy Enterprises, Inc. 6.74 -4.39 (-39.44%)ACMR ACM Research, Inc. 57.04 -11.43 (-16.69%)FOUR Shift4 Payments, Inc. 48.41 -8.96 (-15.62%)FSK FS KKR Capital Corp. 11.29 -2.03 (-15.24%)MIRM Mirum Pharmaceuticals, Inc. 92.19 -16.43 (-15.13%)Most activeNVDA NVIDIA Corporation 184.89 -10.73 (-5.49%)EOSE Eos Energy Enterprises, Inc. 6.74 -4.39 (-39.44%)NU Nu Holdings Ltd. 15.06 -1.59 (-9.55%)PLUG Plug Power Inc. 1.9100 0.0000 (0.00%)AAL American Airlines Group Inc. 13.94 +0.62 (+4.65%)Top economic eventsEarnings eventsMy earnings eventsEarnings events