Key Highlights
- The company lifted its 2026 annual revenue growth projection to 10%, matching Street consensus
- Second-quarter revenue climbed 10% to reach $19.6 billion; card spending surged 9% to $455.8 billion
- Quarterly EPS reached $4.53, surpassing the $4.40 consensus estimate
- Provisions for credit losses declined to $1.1 billion from $1.4 billion in the prior-year period
- Shares traded 1.4% lower in premarket activity despite solid performance
Shares of American Express (AXP) declined 1.4% during Friday’s premarket session following the financial services giant’s announcement of upwardly revised 2026 revenue guidance and better-than-expected second-quarter results.
The share price retreat occurred even as the company delivered financial metrics that exceeded analyst projections across key categories.
For the second quarter, AmEx posted revenue of $19.6 billion, representing a 10% increase from the year-earlier period. Total billed business — a measure of overall card member spending — increased 9% to $455.8 billion when adjusted for foreign exchange fluctuations.
The company delivered earnings per share of $4.53 for the three-month period ending June 30. This figure exceeded the consensus analyst forecast of $4.40 per share and compared favorably to the prior year’s $4.08.
Chief Executive Stephen Squeri emphasized the company’s building momentum as it moves through 2025. “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.”
Management elevated its 2026 revenue growth outlook to 10%, aligning with Wall Street expectations per LSEG data. However, the company maintained its existing profit growth guidance, a factor that may have dampened investor enthusiasm despite the otherwise positive report.
Credit Metrics Show Improvement
Credit performance emerged as a bright spot in the quarterly results. AmEx allocated $1.1 billion for potential credit losses during Q2, a notable decrease from the $1.4 billion reserved in the comparable quarter last year.
Reduced loss provisions indicate management’s growing confidence in cardmember payment reliability. For financial institutions, this trend represents an encouraging development.
The company’s clientele consists predominantly of affluent consumers, a demographic that has demonstrated greater financial resilience compared to lower-income segments amid current economic conditions.
High-End Consumer Spending Remains Strong
Travel and entertainment expenditures remained primary drivers of AmEx card activity. These spending categories have shown particular strength among wealthier consumers, who continue to spend despite broader economic uncertainty.
While the University of Michigan reported a recovery in U.S. consumer sentiment from historic lows in June, American households continue expressing anxiety over living costs.
Market observers pay close attention to AmEx’s quarterly performance as it offers early insights into affluent consumer behavior before competing card networks release their own results.
The second-quarter data indicates that this demographic maintains robust spending patterns, at least through mid-2025.
The company’s quarterly credit loss reserves totaled $1.1 billion, down from $1.4 billion in the same period last year.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
