Key Highlights
- The financial services giant increased its 2026 revenue growth projection to 10%, matching analyst consensus
- Second-quarter revenue climbed 10% year-over-year, reaching $19.6 billion; total card spending surged 9% to $455.8 billion
- Quarterly earnings per share of $4.53 exceeded Wall Street’s $4.40 forecast
- Provisions for credit losses declined to $1.1 billion from $1.4 billion in the prior-year period
- Shares of AXP traded 1.4% lower in premarket activity following the earnings announcement
Shares of American Express (AXP) declined 1.4% during premarket hours on Friday, even after the payments company upgraded its 2026 revenue outlook to 10% and delivered second-quarter results that topped expectations.
The premarket decline occurred despite financial performance that exceeded analyst projections across key metrics.
For the second quarter, AmEx generated $19.6 billion in revenue, representing a 10% increase from the same period last year. Total billed businessāthe aggregate spending across American Express cardsāclimbed 9% to $455.8 billion when adjusted for foreign exchange fluctuations.
The company delivered earnings of $4.53 per share for the quarter that concluded on June 30. This figure surpassed the Street’s consensus estimate of $4.40. In comparison, the company posted $4.08 per share during the same quarter last year.
Chief Executive Stephen Squeri highlighted the company’s accelerating business trajectory. “Six months into the year, we’re seeing stronger momentum than we expected,” Squeri noted. “The investments we made in our value propositions have driven accelerated spend and revenue growth.”
American Express revised its full-year 2026 revenue growth outlook upward to 10%. This adjustment aligns with Wall Street forecasts, based on LSEG data. However, the company maintained its existing profit growth guidance, which analysts suggest may have dampened investor enthusiasm.
Improving Credit Metrics
Credit performance emerged as a bright spot in the quarterly results. AmEx allocated $1.1 billion for potential credit losses during Q2, representing a significant decrease from the $1.4 billion reserved in the comparable quarter last year.
Reduced loan loss provisions indicate greater confidence that cardholders will meet their payment obligations. This trend represents a favorable development for the lending business.
The company’s clientele predominantly consists of affluent consumers, a demographic that has demonstrated stronger financial resilience compared to lower-income segments amid the current macroeconomic landscape.
Premium Consumer Spending Remains Strong
Travel and restaurant expenditures remained primary growth drivers for American Express card usage. These spending categories have proven remarkably durable among wealthier consumers, despite volatility in overall consumer confidence levels.
Recent data from the University of Michigan showed U.S. consumer sentiment improving from historic lows in June, although persistent inflation concerns continue to weigh on household budgets.
Market participants closely monitor AmEx’s quarterly performance as it offers valuable insights into high-end consumer behavior before competing card network companies release their results.
The second-quarter data indicates that affluent consumers continue to maintain robust spending patterns, at least in the near term.
Credit loss provisions totaled $1.1 billion this quarter, down from the $1.4 billion recorded in the year-ago period.
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