NEW YORK, July 24, 2026, 19:00 EDT
- U.S. cash markets are not open. American Express settled at $326.17, falling 4.3% on Friday and losing 8.2% over the week.
- Revenue for the second quarter increased by 10%, while overall expenses increased by 12%. Nearly 89% of additional revenue was offset by a rise in expenses.
- AmEx increased its projected revenue growth for 2026 to 10% while maintaining its earnings forecast between $17.30 and $17.90 per share.
American Express Company NYSE:AXP dropped 4.3% on Friday, as a stronger-than-expected profit did not boost the company’s annual earnings outlook. The stock ended the session at $326.17.
Investors paid attention to the expenses behind that growth. The profit trend for the quarter appeared less favorable.
Revenue after interest expense climbed by $1.781 billion, while consolidated costs were up $1.581 billion. This resulted in just $200 million remaining prior to adjustments for credit provisions.
| Second-quarter measure | 2026 preliminary | 2025 | Change |
|---|---|---|---|
| Net revenue after interest expense | $19.637 billion | $17.856 billion | +10% |
| Total consolidated costs | $14.482 billion | $12.901 billion | +12% |
| Provision for credit losses | $1.084 billion | $1.405 billion | -23% |
| Income before taxes | $4.071 billion | $3.550 billion | +15% |
| EPS, diluted | $4.53 | $4.08 | +11% |
The company’s figures are unaudited and subject to preliminary review.
The $321 million drop in provision accounted for roughly 62% of the $521 million rise in pretax profit. AmEx cited a reserve release as a contributing factor to the reduction. The previous year’s quarter had been impacted by a reserve build. The net write-off rate stayed at 2.0%.
Net income increased by 8% to $3.11 billion. Diluted EPS reached $4.53, surpassing the FactSet forecast by 13 cents. Revenue fell short of the $19.69 billion estimate by approximately $53 million.
Chief Executive Stephen Squeri stated that AmEx will “reinvest this outperformance in growth initiatives.” As a result, the company maintained its earnings guidance, even though it raised its revenue outlook. Stock Titan
Aptus Capital Advisors’ David Wagner noted the spending “won’t immediately flow through to bottom-line profits.” The drop on Friday indicated that this concern resonated with investors. Reuters
Core demand for cards stayed strong. Billed business climbed by 9% to $455.8 billion, recording its fastest expansion in three years. Travel and entertainment expenses gained 10%.
The breakdown of expenses illustrates how revenue is allocated. Spending on customer rewards, business development, and card-member services totaled $8.755 billion, rising from $7.508 billion in the prior year.
AmEx has raised its 2026 revenue growth forecast to 10%, up from its previous estimate of 9% to 10%. The EPS forecast remains the same, suggesting the company intends to allocate most of the additional revenue.
The stock has fallen for six straight sessions, marking its longest stretch of declines in two years. Shares have dropped 8.2% since closing on July 17.
Visa NYSE:V closed up 1.1% on Friday, while Mastercard NYSE:MA advanced 1.8%. The difference suggests the margin issue is specific to AmEx, not indicative of widespread selling in payments stocks.
Visa is set to report results after Tuesday’s market close, with Mastercard scheduled to release its figures on Thursday morning. The companies’ volume metrics are expected to provide new insight into trends in travel and consumer payments.
Risks are still focused on credit and expense management. Card balances climbed 8% to $218.1 billion. The stable earnings outlook could face strain from rising delinquencies, increased reward redemption or higher marketing costs.
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