American Express Company (NYSE:AXP) announced its quarterly earnings results on Friday. The payment services company reported $4.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.41 by $0.12, FiscalAI reports. American Express had a return on equity of 33.95% and a net margin of 15.13%.The company had revenue of $14.99 billion during the quarter, compared to analyst estimates of $19.70 billion. During the same quarter in the previous year, the firm posted $4.08 EPS. The firm’s quarterly revenue was up 10.0% on a year-over-year basis. American Express updated its FY 2026 guidance to 17.300-17.900 EPS.
Here are the key takeaways from American Express’ conference call:
- American Express posted 10% revenue growth and $4.53 EPS in Q2, and management raised full-year revenue growth guidance to 10% while keeping EPS guidance at $17.30-$17.90.
- The company said its Platinum refresh is driving strong momentum, with U.S. consumer spend up 11.4%, the Platinum portfolio now the fastest-growing in the U.S. consumer business, and retention remaining very high.
- Credit quality remained a standout, with delinquency and write-off rates still below 2019 levels and provision expense benefiting from a $191 million reserve release due to further portfolio strength.
- Management plans to reinvest better-than-expected results into customer acquisition, technology, and the planned TheFork acquisition rather than flow all upside to EPS, which supports long-term growth but keeps near-term earnings guidance unchanged.
- Card fee growth is expected to accelerate in Q3 and exit the year in the high teens, while the sale of two small business co-brand portfolios will create a modest year-end headwind to spend and NII that was already built into guidance.
American Express Price Performance
Shares of AXP traded down $16.47 during trading hours on Friday, hitting $324.37. 3,293,761 shares of the company were exchanged, compared to its average volume of 3,368,777. The firm has a fifty day simple moving average of $332.26 and a 200-day simple moving average of $330.36. The company has a market capitalization of $221.33 billion, a PE ratio of 20.22, a PEG ratio of 1.41 and a beta of 1.04. The company has a debt-to-equity ratio of 1.73, a current ratio of 1.57 and a quick ratio of 1.56. American Express Company has a one year low of $288.34 and a one year high of $387.49.
American Express Dividend Announcement
Key Stories Impacting American Express
Here are the key news stories impacting American Express this week:
- Positive Sentiment: American Express reported Q2 EPS of $4.53, topping expectations, and said revenue rose 10% year over year as cardmembers kept spending more on travel and dining. Stronger card activity also helped drive profit higher and delinquency rates lower. Reuters article
- Positive Sentiment: The company raised its full-year 2026 revenue growth forecast, signaling confidence that affluent customers will continue to spend despite economic uncertainty. Business Wire article
- Positive Sentiment: Premium card sign-ups remained strong, suggesting American Express is still attracting higher-value customers and supporting longer-term growth. Economic Times article
- Neutral Sentiment: Management also noted expenses rose 12% due to marketing and product updates, which may support growth but adds near-term cost pressure. Economic Times article
- Negative Sentiment: Investors appear focused on the revenue miss versus Wall Street expectations, which helped trigger the stock’s decline even though earnings were better than forecast. Proactive Investors article
Analyst Ratings Changes
AXP has been the subject of several research analyst reports. JPMorgan Chase & Co. raised shares of American Express from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $328.00 to $400.00 in a report on Monday, July 13th. UBS Group upped their price target on shares of American Express from $340.00 to $386.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. Bank of America raised their price objective on shares of American Express from $387.00 to $391.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Loop Capital initiated coverage on American Express in a report on Thursday, May 21st. They set a “buy” rating and a $389.00 target price on the stock. Finally, Jefferies Financial Group raised American Express from a “hold” rating to a “buy” rating in a research note on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $374.11.
Read Our Latest Report on American Express
Institutional Investors Weigh In On American Express
Large investors have recently made changes to their positions in the company. Brighton Jones LLC raised its position in American Express by 24.4% during the fourth quarter. Brighton Jones LLC now owns 6,481 shares of the payment services company’s stock valued at $1,924,000 after buying an additional 1,273 shares during the period. Sivia Capital Partners LLC grew its stake in American Express by 13.0% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,738 shares of the payment services company’s stock valued at $554,000 after acquiring an additional 200 shares in the last quarter. Schnieders Capital Management LLC. purchased a new position in American Express during the 2nd quarter valued at about $428,000. Howland Capital Management LLC increased its holdings in shares of American Express by 4.2% in the 2nd quarter. Howland Capital Management LLC now owns 2,216 shares of the payment services company’s stock valued at $707,000 after purchasing an additional 90 shares during the period. Finally, HUB Investment Partners LLC increased its holdings in shares of American Express by 19.9% in the 2nd quarter. HUB Investment Partners LLC now owns 2,898 shares of the payment services company’s stock valued at $924,000 after purchasing an additional 481 shares during the period. Institutional investors and hedge funds own 84.33% of the company’s stock.
American Express Company Profile
American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.
American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.
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