American Express (NYSE:AXP) Posts Earnings Results, Beats Estimates By $0.12 EPS

American Express Company (NYSE:AXP) posted its quarterly earnings results on Friday. The payment services company reported $4.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.41 by $0.12, FiscalAI reports. American Express had a net margin of 15.13% and a return on equity of 33.95%. The firm had revenue of $14.99 billion during the quarter, compared to analysts’ expectations of $19.70 billion. During the same period in the prior year, the company posted $4.08 earnings per share. The firm’s revenue for the quarter 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 Stock Down 5.2%

NYSE:AXP traded down $17.65 during mid-day trading on Friday, hitting $323.19. The company had a trading volume of 3,070,424 shares, compared to its average volume of 3,367,665. The business has a fifty day simple moving average of $332.26 and a 200-day simple moving average of $330.36. The firm has a market capitalization of $220.52 billion, a price-to-earnings ratio of 20.16, a PEG ratio of 1.41 and a beta of 1.04. American Express Company has a 1 year low of $288.34 and a 1 year high of $387.49. The company has a current ratio of 1.57, a quick ratio of 1.56 and a debt-to-equity ratio of 1.73.

American Express Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Thursday, July 2nd will be given a $0.95 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $3.80 annualized dividend and a yield of 1.2%. American Express’s dividend payout ratio (DPR) is 23.71%.

Hedge Funds Weigh In On American Express

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Sfam LLC purchased a new position in shares of American Express in the fourth quarter valued at $26,000. Caitong International Asset Management Co. Ltd acquired a new position in American Express in the 4th quarter worth $28,000. Wilkerson Advisory Group LLC purchased a new position in American Express in the 4th quarter valued at about $29,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of American Express during the third quarter valued at about $28,000. Finally, Swiss RE Ltd. purchased a new stake in shares of American Express during the fourth quarter worth about $39,000. 84.33% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. TD Cowen lifted their price target on shares of American Express from $330.00 to $338.00 and gave the company a “hold” rating in a research report on Tuesday, July 7th. Jefferies Financial Group upgraded shares of American Express from a “hold” rating to a “buy” rating in a report on Monday, July 13th. Guggenheim began coverage on shares of American Express in a research report on Monday, July 13th. They issued a “buy” rating for the company. Bank of America upped 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. Finally, Evercore began coverage on shares of American Express in a research report on Monday, July 13th. They set a “neutral” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, American Express currently has a consensus rating of “Moderate Buy” and a consensus target price of $374.11.

Key Headlines 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

About American Express

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.