American Express Company
AXP · NYSE
Dec 2026
Next quarter
Expected to report Jan 29, 2027 — estimated from last year’s reporting date.
Consensus is $4.30 EPS for Dec 2026 across 8 estimates, ranging $4.23 to $4.44.
AXP Sep 2026
- 4.70%
- $4.47
- $4.68
- —
- $11.23B
Reported results
- $11.23B
- $3.71B
- $5.42
Highlights
- EPS beat: Adjusted EPS was $4.68, 4.7% above the $4.47 consensus; GAAP diluted EPS was $5.42, up 31% year over year, including a gain on the Global Business Travel Group sale.
- Revenue growth: Revenue net of interest expense reached $20.06 billion, up 9% year over year and 2% from Q2; net income rose 28% year over year to $3.71 billion.
- Spending and fees: Billed business increased 8% to $454.0 billion. Net card fees grew 16% reported and 17% FX-adjusted, while net interest income rose 10%.
- Consumer and international: U.S. Consumer Services billed business grew 9% and International Card Services grew 11%; Commercial Services grew 3%, or 5% excluding cobrand portfolio exits.
- Credit costs eased: Provisions fell 23% to $985 million and included a net reserve release of about $211 million, driven largely by CECL model enhancements; the write-off rate was 2.1%, versus 2.2% a year ago.
- Guidance raised: Amex reaffirmed full-year revenue growth guidance of 10% and raised reported EPS guidance to $18.30–$18.60, or adjusted EPS to $17.60–$17.90.
- Restructuring and regulation: The company recorded a $336 million restructuring charge, expected to eliminate about 5% of global positions, and increased legal reserves, including for the OCC penalty.
- Capital returned: Amex returned $2.2 billion to shareholders in Q3, including $1.6 billion in repurchases and $641 million in common dividends; CET1 was 10.9%.
Analysis
American Express delivered a strong Q3, with adjusted EPS of $4.68 beating the $4.47 consensus by 4.7%. GAAP diluted EPS was $5.42, up 31% from $4.14 a year ago, while revenue net of interest expense rose 9% to $20.06 billion and net income increased 28% to $3.71 billion. Sequentially, revenue increased from $19.64 billion in Q2, net income from $3.11 billion, and GAAP diluted EPS from $4.53. The headline earnings include a $1.11-per-share gain from the GBTG sale; excluding that gain and a $0.37-per-share restructuring charge, adjusted EPS was $4.68, up 13% year over year.
The core business combined 8% billed-business growth with accelerating card-fee growth: net card fees rose 16% reported, or 17% FX-adjusted, and net interest income grew 10%. Credit metrics remained favorable, and provisions declined to $985 million, although a roughly $211 million reserve release—largely from model enhancements—contributed to the decrease. Amex reaffirmed 10% revenue growth guidance for 2026 and raised its reported EPS range to $18.30–$18.60. Alongside the operating momentum, the quarter featured investment and transition costs: a workforce restructuring, higher marketing, and increased legal reserves tied in part to regulatory matters.
Spending and card fees
- Billed business: Cardmember spending rose 8% year over year to $454.0 billion, in line with the recent trend. Goods and Services grew 7%, while Travel and Entertainment grew 10%; airline spend accelerated to 13% and restaurant spend increased 9%.
- Segment mix: U.S. Consumer Services billed business grew 9%, with management reporting 9.4% U.S. consumer spend growth. International Card Services grew 11%, while Commercial Services increased 3%; commercial growth was 5% excluding the impact of cobrand portfolio exits.
- Fee and interest revenue: Net card fees rose 16% reported and 17% FX-adjusted, reflecting premium portfolio growth and the U.S. Platinum refresh. Discount revenue increased 8%, and net interest income advanced 10%, faster than the 8% growth in card balances and other loans.
- Acquisition and engagement: Amex acquired 3.1 million proprietary cards in the quarter, 76% of new accounts on fee-paying products. A year after the U.S. Consumer Platinum refresh, portfolio spend retention remained 99%.
Earnings and guidance
- Reported and adjusted results: GAAP diluted EPS of $5.42 included a $982 million pretax ($751 million after-tax) gain on the GBTG investment sale, equal to $1.11 per share, and a $336 million pretax restructuring charge, equal to $0.37 per share. Adjusted EPS, excluding those two items, was $4.68, up 13% year over year.
- Other notable items: Adjusted EPS included a $0.51-per-share increase in legal reserves, a $0.29-per-share discrete tax benefit, and a $0.24-per-share benefit from CECL model updates; management said these three items had no meaningful net effect on adjusted EPS.
- 2026 outlook: Amex reaffirmed revenue growth guidance of 10% and raised reported EPS guidance to $18.30–$18.60 and adjusted EPS guidance to $17.60–$17.90, citing year-to-date performance.
Credit and reserves
- Provision and reserve release: Total provision for credit losses declined 23% year over year to $985 million. Card provisions were $895 million, including a $235 million reserve release; other credit provisions included a $23 million reserve build, resulting in a net reserve release of about $211 million.
- Portfolio performance: Card balances grew 7% year over year to $221.1 billion, while the total net write-off rate was 2.1%, down from 2.2% a year earlier. Consumer and small-business 30-plus-day delinquencies were 1.2%, compared with 1.3% a year ago.
- Coverage context: Card loss reserves ended the quarter at $5.63 billion, or 2.5% of card balances, versus 2.9% a year earlier. Management attributed the quarter’s reserve release primarily to enhancements in its CECL models and described the portfolio as increasingly weighted toward premium, fee-paying customers.
Costs and controls
- Restructuring: Amex recorded a $336 million charge funded in part by the GBTG gain, with the initiative expected to eliminate approximately 5% of global positions. Management said the aim is to simplify the organization and redirect capacity toward growth priorities.
- Growth investment: Marketing expense rose 11% year over year to $1.77 billion. Rewards expense increased 10% to $5.09 billion and Card Member services expense rose 36% to $2.01 billion, reflecting spend, benefit usage and the Platinum refresh. The VCE-to-revenue ratio was 44.3%; management expects VCE growth to moderate significantly in Q4 as the refresh laps.
- Regulatory and legal matters: The quarter included higher legal reserves, including the unreserved portion of the OCC’s $350 million civil money penalty and a reserve for an unrelated anticipated settlement. Amex said the consent orders do not impose an asset cap, the fine does not change 2026 guidance, and remediation costs are not expected to affect 2027 guidance.
- Underlying costs: Total reported expenses rose 9% to $14.55 billion, but management said underlying operating expense growth was 3% excluding the GBTG gain, restructuring and legal items. It also said ongoing risk-and-control investments are already in the run rate.
AI and membership
- Customer experience: Management framed AI primarily as a way to extend membership value through more personalized benefits, customer acquisition, engagement, payments and service—not only as a productivity tool. Examples include AI-assisted dining recommendations and hotel and travel discovery.
- Partner and payment initiatives: Amex is working with OpenAI on Resy discovery and reservations in ChatGPT and an Amex Offers capability, and with other AI platforms on customer and business tools. Its Agentic Commerce Experiences developer kit and Intent Intelligence framework are intended to support authenticated, controlled agent-led payments.
- New membership benefits: Amex announced an exclusive Airbnb partnership that will bring more than 1 million listings into Amex Travel and expand travel benefits for eligible U.S. cardmembers. The company also cited new and expanded Centurion Lounges and corporate products as part of its ongoing value proposition work.
Capital and segments
- Shareholder returns: Amex returned $2.24 billion in the quarter, comprising $1.60 billion of common-share repurchases and $641 million of dividends. It repurchased 4.8 million shares at an average price of $331.37.
- Capital position: CET1 was 10.9%, within the company’s 10%–11% target range. The ratio reflected the GBTG sale gain; management said it would continue returning excess capital while supporting balance-sheet growth.
- Segment profitability: U.S. Consumer Services pretax income rose 24% to $2.30 billion. Commercial Services pretax income fell 6% to $1.03 billion as expense growth exceeded revenue growth, while International Card Services pretax income slipped 2% to $432 million despite 11% billed-business growth. Global Merchant and Network Services pretax income rose 4% to $1.08 billion.
