American Express (AXP) Stock Gains After Q1 Earnings Beat Expectations

Quick Summary

• Q1 net profit increased 15% from prior year to reach $2.97 billion
• Earnings per share of $4.28 surpassed Wall Street projections of $4.00–$4.02
• Quarterly revenue climbed 11% to $18.9 billion, exceeding the $18.6 billion forecast
• FX-adjusted cardmember spending expanded 9%—marking the strongest quarterly performance in three years
• Management reaffirmed 2026 outlook: 9–10% revenue expansion and EPS range of $17.30–$17.90

American Express delivered robust first-quarter results, reporting net profit of $2.97 billion—a 15% increase from the $2.58 billion recorded during the year-ago period.

The company’s earnings per share came in at $4.28, comfortably surpassing analyst consensus estimates that ranged between $4.00 and $4.02.

Quarterly revenue totaled $18.9 billion, representing an 11% year-over-year increase and beating the FactSet consensus estimate of $18.6 billion.

American Express Company, AXP

Shares edged approximately 1–1.2% higher in Thursday’s premarket session following the earnings release. Despite this gain, AXP remains down roughly 11% for the year through the close of regular trading.

The headline metric from the quarterly report was total cardmember spending. Billed business across American Express cards increased 9% on a currency-adjusted basis, reaching $428 billion.

Chief Executive Stephen Squeri characterized it as “the highest quarterly growth in three years,” attributing the performance to strong appetite for the firm’s premium card offerings.

Consumer Demand Remains Resilient

Travel-related purchases and discretionary spending categories fueled much of the quarterly growth. AmEx’s clientele, which tilts heavily toward affluent consumers, has demonstrated greater spending stability compared to the broader market.

This dynamic emerges against a backdrop of persistent inflation and elevated borrowing costs that have pressured other consumer segments.

The performance positions AmEx favorably relative to credit card competitors with greater exposure to middle- and lower-income cardholders.

Credit Reserves Edge Higher

Regarding credit quality, AmEx recorded $1.3 billion in consolidated credit loss provisions during the first quarter, compared to $1.2 billion in the same quarter last year.

The increase was relatively minor. Rising provisions typically indicate a lender is strengthening reserves against possible future charge-offs, though the change here was measured.

Management left its full-year 2026 financial guidance unchanged. The company continues to project revenue growth between 9% and 10%.

The EPS outlook for the full year remains in the $17.30 to $17.90 range, according to Squeri’s prepared remarks.

Investors and analysts monitor AmEx quarterly results closely as a bellwether for U.S. consumer health, particularly among higher-income households.

Solid performance from the premium card leader typically provides reassurance for retailers and brands focused on affluent customer segments.

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