Key Highlights
- First-quarter net income surged 15% to $2.97 billion from $2.58 billion last year
- Earnings per share of $4.28 exceeded Wall Street’s $4.00–$4.02 projection
- Total revenue climbed 11% to $18.9 billion, surpassing the $18.6 billion forecast
- Billed business expanded 9% on an FX-adjusted basis — marking the strongest quarterly increase since 2022
- Management maintained 2026 outlook: 9–10% revenue growth and EPS between $17.30–$17.90
American Express delivered robust first-quarter results, reporting net income of $2.97 billion — a 15% increase from the $2.58 billion recorded in the year-ago period.
The company’s earnings per share reached $4.28, handily surpassing analyst projections that ranged between $4.00 and $4.02 across various estimates.
Quarterly revenue totaled $18.9 billion, reflecting an 11% year-over-year jump. The figure topped FactSet’s consensus estimate of $18.6 billion.
Shares ticked higher by approximately 1–1.2% during Thursday’s premarket session. Despite the positive reaction, AXP remains down roughly 11% for the year entering this earnings release.
The headline achievement came from cardmember activity. Total billed business — representing all spending on AmEx cards — increased 9% on a currency-adjusted basis to $428 billion.
CEO Stephen Squeri highlighted this as “the highest quarterly growth in three years,” crediting strong appetite for the firm’s premium card offerings.
Consumer Demand Remains Firm
Travel expenditures and discretionary purchases fueled much of the spending acceleration. AmEx’s clientele, which predominantly comprises affluent consumers, continues demonstrating greater stability than the broader market.
This trend emerges even as persistent interest rates and inflation pressures challenge other segments of consumer finance.
The performance positions AmEx favorably relative to competitors serving middle- and lower-income borrowers who face tighter financial conditions.
Credit Reserves Edge Higher
Regarding credit quality, AmEx allocated $1.3 billion toward consolidated credit loss provisions during the quarter, compared with $1.2 billion in the prior-year period.
The uptick was relatively minor. Increased provision levels typically indicate a company is preparing for potential loan defaults, though this adjustment appears cautious rather than alarming.
Management left its full-year 2026 financial targets unchanged. The company continues projecting revenue expansion of 9% to 10%.
Full-year earnings per share guidance stands firm at $17.30 to $17.90, according to Squeri’s official statement.
AmEx’s quarterly performance serves as a bellwether for broader U.S. consumer spending patterns, particularly among affluent demographics.
Solid results from the payments leader typically provide reassurance to retailers and brands focused on premium market segments.
