TLDR
- American Express shares dropped 2.8% in premarket trading after reporting Q4 earnings of $3.53 per share, slightly below the $3.54 estimate
- Fourth-quarter revenue climbed 10% to $18.98 billion, surpassing Wall Street’s $18.92 billion forecast
- The company projects 2026 earnings between $17.30 and $17.90 per share with revenue growth of 9% to 10%
- Card member spending rose 9% while net card fee revenues jumped by double digits
- The credit-card company raised its quarterly dividend 16% to 95 cents per share
American Express stock fell Friday morning after the company delivered fourth-quarter results that missed earnings expectations. The credit-card issuer reported earnings of $3.53 per share, falling short of the $3.54 analyst consensus.
Revenue told a different story. The company posted $18.98 billion in revenue net of interest expenses, beating Wall Street’s $18.92 billion estimate by a comfortable margin.
Net income reached $2.46 billion for the quarter. That marked an increase from $2.17 billion in the same period last year.
Shares dropped 2.8% in premarket trading. The stock had already fallen 3.1% year-to-date through Thursday’s close.
Card Spending Powers Revenue Beat
Multiple factors drove the revenue increase. Card member spending jumped 9% during the quarter, showing continued strength in consumer activity.
Net card fee revenues grew by double digits. The growth reflected strong demand for the company’s premium card products.
Increased net interest income also contributed to the revenue gain. The boost came from growing revolving loan balances as cardholders carried more debt.
Company expenses climbed 10% to $14.5 billion. Higher variable customer engagement costs accounted for most of the increase, driven by elevated customer spending and the rollout of new Platinum card products.
Forward Guidance and Dividend Hike
American Express outlined its 2026 expectations. The company forecasts revenue growth will remain steady at 9% to 10% for the full year.
Earnings guidance came in at $17.30 to $17.90 per share for 2026. The midpoint slightly exceeds the analyst consensus of $17.43 per share.
The company announced a dividend increase to 95 cents per share. The 16% bump takes effect in the first quarter of 2026.
Broader Market Impact
Other financial stocks declined in early trading. Capital One Financial dropped 0.7% while JPMorgan Chase fell 0.4% in premarket action.
Card network providers also moved lower. Visa shares slipped 1% and Mastercard declined 0.6%.
The S&P 500 fell sharply in early premarket trading before recovering ground. The index bounced after President Trump nominated former Federal Reserve governor Kevin Warsh as the next Fed chair.
Uncertainty around Trump’s proposal to cap credit-card interest rates at 10% for one year has weighed on financial stocks. The proposal has created headwinds for credit-card issuers in early 2026.
American Express has previously stated its customer base continues spending despite broader economic concerns. The company focuses on higher-income consumers who pay premium fees for cards offering exclusive perks and benefits.
The quarterly results showed card member spending remained resilient. Net card fee revenues grew by double digits, indicating strong customer retention and acquisition in the premium card segment.
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