American Express Company
AXP · NYSE
Next quarter
Expected to report Oct 16, 2026 — estimated from last year’s reporting date.
Consensus is $4.58 EPS for Sep 2026 across 9 estimates, ranging $4.49 to $4.78.
AXP Jun 2026
- 2.72%
- +2.83%
- $4.41
- $4.53
- —
- $11.21B
Reported results
- $11.21B
- $3.11B
- $4.53
Highlights
- Earnings beat: Diluted EPS was $4.53 versus consensus of $4.41, a 2.72% surprise, and rose 11% from $4.08 a year ago and 6% from $4.28 in Q1.
- Revenue and profit growth: Reported revenue was $11.21 billion, while total revenues net of interest expense increased 10% year over year to $19.64 billion; net income rose 8% year over year to $3.11 billion from $2.89 billion.
- Spending momentum: Network volumes increased 9% year over year to $516.8 billion and billed business rose 9% to $455.8 billion, with U.S. Consumer Services up 11% and International Card Services up 13%.
- Fee and interest income: Net card fees grew 15% to $2.86 billion and net interest income increased 11% to $4.65 billion, supported by higher balances and a 8.1% net interest yield.
- Credit costs improved: Provisions for credit losses fell 23% year over year to $1.08 billion and 13% from Q1; the principal-only net write-off rate held at 2.0% and 30-plus-day delinquencies declined to 1.2% from 1.3% a year ago.
- Premium customer investment: Card Member services expense increased 50% to $1.95 billion, while total variable customer engagement costs rose 17% to $8.76 billion as Amex funded refreshed Platinum benefits and higher rewards usage.
- Segment leadership: U.S. Consumer Services pretax income increased 23% to $2.07 billion, International Card Services rose 3% to $477 million, Commercial Services rose 7% to $970 million and Global Merchant and Network Services rose 7% to $1.13 billion.
- Capital returns: Amex returned $2.89 billion to shareholders in the quarter, including $2.24 billion of repurchases and $645 million of common dividends; its CET1 ratio was 10.4%, within the 10%-11% target range.
Analysis
American Express delivered a solid second quarter, with diluted EPS of $4.53 beating the $4.41 consensus by 2.72%. Reported revenue was $11.21 billion, while the company’s operating measure of total revenues net of interest expense rose 10% year over year to $19.64 billion. Net income increased 8% to $3.11 billion from $2.89 billion in Q2 2025 and rose from $2.97 billion in Q1 2026; EPS increased from $4.08 a year ago and $4.28 sequentially.
The print was defined by continued spending and fee momentum, a favorable credit-cost comparison and heavy reinvestment in the premium membership proposition. Network volumes grew 9% to $516.8 billion, net card fees rose 15% to $2.86 billion and net interest income increased 11% to $4.65 billion. Provisions declined 23% year over year to $1.08 billion, helped by reserve releases and lower delinquencies, while the principal-only write-off rate remained stable at 2.0%. Expenses nevertheless grew 12% to $14.48 billion, led by a 50% increase in Card Member services expense and higher rewards costs. Amex also returned $2.89 billion of capital while maintaining CET1 at 10.4%.
Earnings and revenue growth
Amex’s second-quarter earnings growth came from broad revenue expansion, lower credit provisions and continued share count reduction. Total revenues net of interest expense rose 10% year over year to $19.64 billion, while net income increased 8% to $3.11 billion. The effective tax rate rose to 23.6% from 18.7% a year ago because the prior-year period benefited from discrete tax items, limiting the conversion of pretax growth into net income. Diluted average shares declined 3% year over year to 679 million.
- Sequential improvement: Revenue increased from $10.52 billion in Q1 to $11.21 billion, net income rose from $2.97 billion to $3.11 billion and diluted EPS rose from $4.28 to $4.53.
- Returns: Return on average equity was 36.4%, compared with 35.2% in Q1 and 36.3% a year ago.
Spending and fee momentum
The core payments franchise continued to grow at a healthy pace. Billed business increased 9% year over year to $455.8 billion, with both major merchant categories contributing: Goods & Services spend rose 9% and Travel & Entertainment spend rose 10%. Transaction growth was 10%, indicating engagement was running ahead of billed-volume growth.
- Consumer strength: U.S. Consumer Services billed business rose 11% to $196.4 billion, supported by premium portfolios and the refreshed U.S. Platinum products.
- International growth: International Card Services billed business rose 13% to $117.2 billion, or 12% on an FX-adjusted basis.
- Monetisation: Net card fees increased 15% to $2.86 billion, while average fee per proprietary card rose 12% to $131. Proprietary cards-in-force increased 3% to 87.6 million.
- Interest income: Net interest income grew 11% to $4.65 billion as average Card balances and other loans increased 8% to $227.8 billion and net interest yield expanded to 8.1% from 7.9%.
Credit costs and quality
Credit was a meaningful earnings tailwind. Total provisions for credit losses declined to $1.08 billion from $1.41 billion a year ago and $1.25 billion in Q1. Card-balance provisions fell 23% year over year to $1.02 billion, reflecting a current-period reserve release versus a prior-year reserve build, even as net write-offs increased 8% to $1.21 billion.
- Stable losses: The principal-only net write-off rate was 2.0%, unchanged from a year ago and Q1; the rate including principal, interest and fees was 2.2%.
- Lower delinquencies: Consumer and small-business 30-plus-day past-due balances fell to 1.2% of total from 1.3% a year ago and in Q1.
- Reserve position: Ending Card-balance reserves declined 2% year over year to $5.87 billion, or 2.7% of Card balances versus 3.0% a year ago.
Segment performance
U.S. Consumer Services remained the largest growth and profit engine, while International Card Services continued to deliver the fastest top-line expansion. Commercial Services grew more slowly and is facing a portfolio mix headwind from the exit of small-business cobrand portfolios held for sale.
- U.S. Consumer Services: Pretax income rose 23% to $2.07 billion as revenues net of interest expense after provisions increased 17% to $9.03 billion; billed business grew 11%.
- Commercial Services: Pretax income increased 7% to $970 million, with billed business up 5% to $141.8 billion. Amex expects spend growth to moderate as small-business cobrand portfolios exit.
- International Card Services: Pretax income increased 3% to $477 million despite 14% expense growth; billed business rose 13% and cards-in-force increased 6% to 23.9 million.
- Global Merchant and Network Services: Pretax income rose 7% to $1.13 billion on 9% network-volume growth to $516.8 billion.
Investment and capital returns
Amex continued to spend aggressively on customer value propositions while returning most of quarterly earnings to shareholders. Total expenses increased 12% to $14.48 billion, including a 9% increase in rewards expense, a 50% increase in Card Member services and a 6% increase in marketing. Management said these costs reflect refreshed Platinum benefits, higher benefit usage, customer acquisition and technology investments.
- Capital distribution: The company repurchased 7.1 million shares for $2.24 billion at an average price of $315.77 and paid $645 million in common dividends, returning $2.89 billion in total, or approximately 93% of net income available to common shareholders.
- Funding: Customer deposits increased 5% year over year to $157.0 billion, while long-term debt declined 2% to $57.0 billion.
- Strategic activity: Amex proposed acquiring European restaurant platform TheFork and expects a sizable pretax gain from selling its approximately 30% stake in Global Business Travel Group once that transaction closes.
