Key Highlights
- First quarter net income reached $2.97 billion, marking a 15% increase from the prior year
- Earnings per share of $4.28 exceeded Wall Street projections of $4.00–$4.02
- Total revenue climbed to $18.9 billion, representing an 11% gain and surpassing the $18.6 billion forecast
- Billed business expanded 9% on a currency-adjusted basis, marking the strongest quarterly expansion in three years
- Management maintained its 2026 outlook, projecting revenue growth of 9–10% and EPS ranging from $17.30 to $17.90
American Express delivered robust financial results for the opening quarter, reporting net income of $2.97 billion versus $2.58 billion during the corresponding period twelve months earlier.
The company’s earnings per share figure of $4.28 exceeded analyst forecasts, which had clustered around $4.00–$4.02 across various research platforms.
Total quarterly revenue hit $18.9 billion, climbing 11% from the year-ago period. The figure topped the Street’s $18.6 billion estimate compiled by FactSet.
Shares edged higher by approximately 1–1.2% during Thursday’s premarket session. The gain comes while AXP trades roughly 11% lower for the year through the earnings release.
Cardmember spending emerged as the quarter’s most impressive metric. Total billed business across the company’s card network increased 9% on a foreign exchange-adjusted basis, reaching $428 billion.
CEO Stephen Squeri described the performance as “the highest quarterly growth in three years,” attributing the strength to robust demand for premium card offerings.
Consumer Activity Remains Solid
Travel-related purchases and discretionary spending categories fueled much of the growth. AmEx’s clientele, which tends toward affluent demographics, continues demonstrating durability compared to broader consumer segments.
This pattern emerges against a backdrop where elevated borrowing costs and persistent inflation have pressured other areas of consumer activity.
The dynamic positions AmEx favorably relative to competitors serving customers with lower income profiles.
Loan Loss Reserves See Marginal Increase
Regarding credit quality, AmEx allocated $1.3 billion toward consolidated provisions for credit losses during the quarter, compared with $1.2 billion in the prior-year period.
The increase remains relatively contained. Rising provisions typically indicate a financial institution is preparing for potential loan defaults, though this adjustment appears measured.
Management left its full-year financial targets unchanged. The company continues projecting revenue expansion of 9% to 10% for 2026.
The earnings per share guidance range of $17.30 to $17.90 for the full year stands firm, according to Squeri’s prepared remarks.
Investors and analysts monitor AmEx quarterly results closely for insights into U.S. consumer spending patterns, particularly among affluent households.
Solid performance from the payments company typically signals positive conditions for retailers and brands catering to premium market segments.
