Key Highlights
- American Express reported Q1 net income of $2.97 billion, marking a 15% increase year-over-year
- Earnings per share reached $4.28, exceeding Wall Street forecasts of $4.00–$4.02
- Quarterly revenue totaled $18.9 billion, representing an 11% gain and beating the $18.6 billion projection
- Card member spending increased 9% on a currency-adjusted basis — marking the strongest quarterly expansion in three years
- Management maintained its 2026 full-year outlook: 9–10% revenue growth with EPS between $17.30 and $17.90
American Express delivered robust first-quarter performance, reporting net income of $2.97 billion versus $2.58 billion during the corresponding quarter of the previous year, representing a 15% gain.
The company’s earnings per share came in at $4.28, comfortably exceeding the analyst consensus range of approximately $4.00–$4.02, varying by source.
Quarterly revenue climbed to $18.9 billion, an 11% year-over-year increase that surpassed market expectations of $18.6 billion based on FactSet compilation.
Shares edged higher by approximately 1–1.2% during Thursday’s premarket session. Despite this uptick, AXP remains down around 11% for the year leading into the earnings release.
The most impressive metric in the quarterly report was card member spending. Total billed business — representing aggregate spending across American Express cards — climbed 9% on an FX-adjusted basis to reach $428 billion.
Chief Executive Stephen Squeri characterized it as “the highest quarterly growth in three years,” fueled by strong demand for the firm’s premium card offerings.
Consumer Spending Remains Resilient
Travel-related purchases and discretionary spending categories powered much of the growth. AmEx’s clientele, which leans heavily toward affluent consumers, continues demonstrating greater stability compared to the broader consumer base.
This trend emerges even as persistent high interest rates and inflationary pressures have challenged other segments of the consumer economy.
The performance positions AmEx favorably relative to credit card competitors with greater exposure to middle and lower-income borrowers.
Credit Loss Reserves See Minor Increase
Regarding credit quality, AmEx allocated $1.3 billion toward consolidated provisions for credit losses during the first quarter, compared to $1.2 billion in the year-ago period.
The increase was relatively contained. Rising provisions typically indicate a financial institution is strengthening its cushion against potential loan defaults, though this adjustment was marginal.
Management left its full-year financial projections unchanged. The company continues to anticipate revenue expansion of 9% to 10% throughout 2026.
The EPS guidance range of $17.30 to $17.90 for the full year was reaffirmed, according to Squeri’s statement.
American Express earnings serve as a critical barometer across the financial sector for gauging U.S. consumer spending patterns during the quarter.
Positive results from the payments leader typically alleviate concerns among retailers and consumer-facing companies focused on premium market segments.
