New York, January 30, 2026, 19:23 (EST) — Trading continues after hours.
- American Express shares fell 1.8% by Friday’s close, with after-hours trading hovering close to that level.
- The card issuer forecasted 2026 EPS between $17.30 and $17.90, with revenue expected to rise 9% to 10%.
- Investors are balancing the expense of updating premium cards with steady travel and dining spending.
American Express Company shares ended Friday down 1.8% at $352.17 and showed little movement in after-hours trading. The decline followed the release of the company’s fourth-quarter results and its 2026 targets.
The numbers matter because the card business has become a real-time gauge of consumer resilience, particularly among wealthier customers. American Express relies heavily on affluent users, so its spending trends often appear stronger than the wider retail landscape.
Behind the scenes, costs are mounting. The company’s premium-card overhaul has driven up rewards and marketing expenses, with returns that don’t always show up right away.
For the quarter ending Dec. 31, revenue net of interest expense climbed 10% to $18.98 billion. Diluted earnings came in at $3.53 per share. Billed business, a stand-in for card spending, increased 9% to $445.1 billion. Expenses rose 10% to $14.5 billion. Provisions for credit losses—funds set aside for bad loans—jumped to $1.4 billion, as the net write-off rate edged up to 2.1%. Stephen J. Squeri said the company anticipates 2026 revenue growth between 9% and 10%, with earnings per share expected at $17.30 to $17.90. The quarterly dividend is set to rise roughly 16%, reaching $0.95.
Christophe Le Caillec noted that spending on the company’s cards by Gen Z and millennials has surpassed that of Gen X in the U.S. consumer segment. “We’re not projecting any discontinuity,” he added, highlighting steady demand in travel, dining, and luxury sectors. Meanwhile, Truist Financial analysts pointed out that the cost of the Platinum card refresh is hitting this quarter, ahead of a clearer rise in new accounts. Reuters
Cardholder spending jumped to $506.2 billion this quarter, up from $464 billion a year ago, while outstanding card loans increased to $213 billion from $199.1 billion, the company disclosed to the Associated Press. The U.S. Platinum refresh raised the annual fee to $895 and introduced perks like a $400 dining credit. AmEx also noted that younger customers are making up a larger share of the spending mix.
The selloff extended beyond AmEx. Visa’s shares dropped on Friday as well, with both stocks ranking among the largest drags on the Dow Jones Industrial Average that day.
Policy risks loom over the entire group. Donald Trump has proposed a one-year cap limiting credit-card interest rates to 10%, which would need congressional approval. On the earnings call, Squeri dismissed the 10% cap as “not the answer.” Analysts at William Blair noted AmEx’s premium clientele might soften the blow compared to the broader industry but highlighted significant uncertainty about how such a rule would be enforced. American Banker
U.S. cash markets remain closed until Monday, Feb. 2, leaving traders to watch for follow-through. The key question: will broker notes emphasize the rising expense run-rate or highlight steady spending? Credit trends will also stay in focus as loan balances continue to climb.
American Express will report first-quarter results on April 24. Investors will watch to see if the costly premium-card revamp is driving new sign-ups and if credit losses remain under control.
