American Express beats estimates and lifts revenue outlook for 2026
American Express reported second-quarter earnings of $4.53 per share on July 24, an 11 percent increase from a year earlier that beat the $4.40 consensus estimate, according to Reuters. The card company raised its full-year revenue growth guidance to 10 percent, citing stronger-than-expected performance in the first half of the year.
Total revenues net of interest expense rose 10 percent to $19.6 billion, just short of analyst estimates. Net income was $3.11 billion, up from $2.89 billion a year earlier, according to the Associated Press. Billed business, the company’s measure of card member spending, increased 9 percent to $455.8 billion, which the company said was its fastest spending growth in three years.
“Six months into the year, we’re seeing stronger momentum than we expected,” chairman and chief executive Stephen Squeri said in a statement. He said the investments the company made in its card benefits had driven accelerated spending and revenue growth.
The company held its full-year earnings guidance at $17.30 to $17.90 per share and said it plans to reinvest its first-half outperformance in growth initiatives. Squeri pointed to the Platinum card portfolio as the fastest-growing in the US consumer business, with millennial and Gen Z customers making up the largest share of new card members.
Despite the earnings beat, American Express shares fell about 6 percent in Friday trading, according to 24/7 Wall St.. Shares of Visa and Mastercard held steady over the same period, indicating the reaction was specific to American Express rather than a broader move in payment stocks. The stock had entered the day down about 7 percent for the year.
