American Express Co (NYSE:AXP) reported upbeat first-quarter 2026 results on Thursday.
The company reported quarterly revenue (net of interest expense) growth of 10% year-over-year to $18.91 billion, topping the analyst consensus estimate of $18.62 billion.
The increase was primarily driven by higher Card Member spending, increased net interest income supported by growth in card balances, and strong card fee growth.
Adjusted EPS coming in at $4.28, topping the analyst consensus estimate of $4.02.
Segments
Card Member spending, or Billed Business, rose 10% Y/Y to $428.0 billion. U.S. Consumer Services revenue climbed 10.6% to $9.12 billion, while Commercial Services revenue increased 7.1% to $4.32 billion.
International Card Services saw a 20.3% jump to $3.53 billion, and Global Merchant and Network Services revenue grew 10.4% to $2.00 billion.
Net card fees surged 18% year-over-year to $2.75 billion.
Total expenses, however, increased by 11% Y/Y to $13.88 billion, primarily driven by higher variable customer engagement costs due to increased Card Member spending, the U.S. Platinum Card refresh, and usage of travel- and lifestyle-related benefits, as well as higher operating expenses.
Provisions for credit losses rose to $1.3 billion from $1.2 billion a year ago, reflecting higher net write-offs and a lower reserve release compared to the prior year.
The first-quarter net write-off rate was 2.0%, down from 2.1% Y/Y.
Chairman and CEO Stephen J. Squeri said the company delivered a strong start to the year, driven by continued momentum among its premium customer base and execution of its growth strategy.
He highlighted 10% FX-adjusted revenue growth and 18% EPS growth for the quarter, with card member spending rising 9%—the strongest quarterly increase in three years—supported by strong demand and engagement with premium products. He also noted that credit performance remained excellent.
Squeri said the company continued to invest in growth initiatives, expanding its sports partnerships by becoming the NFL’s global payments partner and extending its relationship with the NBA.
He added that the company plans the largest-ever one-year expansion of its commercial product suite, beginning with the launch of the Graphite Business Cash Unlimited Card, while also advancing AI efforts with new commerce tools and purchase protection features.
He said the company will increase spending on marketing and technology to capture long-term opportunities.
Annual Outlook
American Express reiterated full-year revenue of $78.73 billion-$79.45 billion, representing a 9%-10% Y/Y increase, compared to the analyst consensus estimate of $79.08 billion.
The company reaffirmed EPS of $17.30-$17.90, compared with the analyst consensus of $17.56.
AXP Price Action: American Express shares were down 4.55% at $317.76 at the time of publication on Thursday, according to Benzinga Pro data.
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