Key Highlights
- Q1 net income increased 15% year-over-year, reaching $2.97 billion for American Express
- 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 jumped 9% on a currency-adjusted basis — marking the strongest quarterly increase in three years
- Full-year 2026 outlook remains unchanged: 9–10% revenue growth and EPS between $17.30–$17.90
American Express delivered impressive first-quarter performance, with net income surging 15% to $2.97 billion from $2.58 billion in the prior-year quarter.
The company’s earnings per share reached $4.28, comfortably exceeding the Street’s consensus estimate range of approximately $4.00–$4.02, based on various analyst sources.
Total revenue hit $18.9 billion, reflecting an 11% year-over-year increase and beating FactSet’s analyst expectation of $18.6 billion.
Shares ticked up approximately 1–1.2% during Thursday’s premarket session. Despite this gain, AXP remains down roughly 11% for the year prior to the earnings release.
The most notable metric in the quarterly report was cardmember activity. Total billed business — representing aggregate card spending — increased 9% on a foreign exchange-adjusted basis to $428 billion.
CEO Stephen Squeri highlighted it as “the highest quarterly growth in three years,” attributing the performance to strong demand for the company’s premium card offerings.
Consumer Spending Remains Robust
Travel-related purchases and discretionary spending categories fueled the growth momentum. AmEx’s clientele, which predominantly consists of affluent consumers, continues demonstrating greater stability compared to broader consumer segments.
This trend emerges as persistent high interest rates and inflationary pressures have dampened spending patterns across other consumer categories.
The outcome positions AmEx favorably relative to credit card competitors with heavier exposure to middle and lower-income cardholders.
Reserve Provisions See Modest Increase
Regarding credit quality, AmEx allocated $1.3 billion toward consolidated provisions for credit losses during Q1, compared to $1.2 billion in the same quarter last year.
This represents a slight uptick. Increased loss provisions typically indicate a lender is preparing for potential future defaults, though this adjustment was relatively minor.
The financial services giant maintained its full-year projections unchanged. Management continues to anticipate revenue expansion of 9% to 10% throughout 2026.
The company’s full-year earnings per share forecast holds steady at $17.30 to $17.90, according to Squeri’s statement.
AmEx’s quarterly performance serves as a bellwether across the financial sector, offering early insights into U.S. consumer spending patterns for the period.
Solid results from this payment network leader typically alleviate concerns among retailers and consumer brands focused on premium market segments.
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