TLDR
- American Express reported Q1 net profit of $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 11% to $18.9 billion, surpassing the $18.6 billion analyst consensus
- Cardmember spending increased 9% on a currency-adjusted basis — marking the strongest quarterly expansion in three years
- Management reaffirmed its 2026 annual outlook: 9–10% revenue growth and EPS between $17.30 and $17.90
American Express delivered robust first-quarter results, with net profit surging 15% to $2.97 billion versus $2.58 billion during the corresponding period a year earlier.
The company’s earnings per share came in at $4.28, comfortably exceeding the Street’s consensus estimate that ranged from $4.00 to $4.02 across various sources.
Total revenue hit $18.9 billion for the quarter, representing an 11% year-over-year gain. The figure topped analyst projections of $18.6 billion compiled by FactSet.
Shares ticked higher by approximately 1–1.2% during premarket hours on Thursday. Despite the positive reaction, AXP remains down roughly 11% so far this year prior to the earnings release.
The headline figure from the quarterly report was cardmember activity. Total billed business — representing aggregate spending volume across AmEx payment cards — jumped 9% on an FX-adjusted basis to $428 billion.
Chief Executive Stephen Squeri highlighted the figure as “the highest quarterly growth in three years,” attributing the momentum to strong demand for the firm’s premium card offerings.
Consumer Activity Remains Firm
Travel-related purchases and discretionary spending categories powered much of the volume growth. AmEx’s clientele, which predominantly consists of affluent consumers, has demonstrated greater stability compared to broader market segments.
This trend emerges against a backdrop where persistent interest rates and inflationary pressures have challenged other areas of consumer spending.
The performance positions AmEx favorably relative to credit card competitors with greater exposure to middle and lower-income demographics.
Credit Reserves See Marginal Increase
Regarding credit quality, AmEx allocated $1.3 billion toward consolidated credit loss provisions during the first quarter, a slight uptick from $1.2 billion in the year-ago period.
The increase was relatively small. Elevated provision levels typically indicate a lender is strengthening reserves in anticipation of possible defaults, though this adjustment was minimal.
Management left its full-year financial guidance unchanged. The company continues to project revenue expansion of 9% to 10% throughout 2026.
The earnings per share outlook remains between $17.30 and $17.90 for the full year, according to Squeri’s prepared remarks.
AmEx quarterly performance serves as a bellwether across the financial services sector, offering early insights into U.S. consumer spending patterns.
Solid results from the payments powerhouse typically alleviate concerns among retailers and consumer-facing brands that cater to affluent demographics.
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