American Express (NYSE:AXP) Posts Earnings Results, Beats Expectations By $0.18 EPS

American Express (NYSE:AXP) announced its quarterly earnings data on Friday. The payment services company reported $4.68 earnings per share for the quarter, beating the consensus estimate of $4.50 by $0.18, FiscalAI reports. The company had revenue of $20.06 billion during the quarter, compared to analysts’ expectations of $20.12 billion. American Express had a return on equity of 34.12% and a net margin of 15.07%. American Express’s revenue for the quarter was up 8.9% compared to the same quarter last year. During the same quarter last year, the company earned $4.14 EPS. American Express updated its FY 2026 guidance to 17.600-17.900 EPS.

Here are the key takeaways from American Express’ conference call:

• Strong Q3 performance: Revenue reached a record $20.1 billion, up 9%, while adjusted EPS rose 13% to $4.68. Management reaffirmed 10% full-year revenue growth guidance and raised reported EPS guidance to $18.30–$18.60.
• Customer trends remained healthy, with billed business up 8%, U.S. consumer spending up 9.4%, and travel-and-entertainment spending up 10%. Net card fees accelerated to 17% growth, new card acquisitions reached 3.1 million, and credit quality remained strong with stable delinquencies and write-offs growing only 3%.
• Management expects card-member service expense growth to moderate significantly in Q4 as the company laps last year’s Platinum refresh. This could support operating leverage, while the company continues investing in marketing, technology, Airbnb benefits, corporate products, and expense-management capabilities.
• American Express outlined an extensive AI strategy spanning personalized membership benefits, customer acquisition, engagement, agentic payments, and customer service. Management sees AI as a long-term growth opportunity but acknowledged that agentic transaction volumes remain small and that implementation will require disciplined investment and controls.
• The company recorded a $336 million restructuring charge, expected to eliminate approximately 5% of global positions, and recognized $0.51 per share in additional legal reserves, including the unreserved portion of an OCC civil money penalty. Management said the regulatory orders do not impose an asset cap and that remediation costs are not expected to affect 2027 guidance.

American Express Price Performance

NYSE AXP traded down $11.79 on Friday, hitting $313.38. 1,949,946 shares of the company’s stock were exchanged, compared to its average volume of 3,230,267. The stock has a 50-day moving average of $319.42 and a 200-day moving average of $326.03. The stock has a market cap of $211.63 billion, a price-to-earnings ratio of 19.02, a P/E/G ratio of 1.38 and a beta of 1.08. American Express has a 52 week low of $290.97 and a 52 week high of $387.49. The company has a current ratio of 1.55, a quick ratio of 1.54 and a debt-to-equity ratio of 1.66.

American Express Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 9th will be paid a dividend of $0.95 per share. The ex-dividend date is Friday, October 9th. This represents a $3.80 annualized dividend and a yield of 1.2%. American Express’s dividend payout ratio is presently 23.06%.

Trending Headlines about American Express

Here are the key news stories impacting American Express this week:

• Positive Sentiment: American Express reported third-quarter adjusted EPS of $4.68, ahead of the roughly $4.50 analyst consensus, while GAAP EPS rose 31% year over year to $5.42. Net income increased 28% to $3.7 billion, helped by higher interest income, stronger card fees and lower provisions for credit losses. American Express Q3 FY26 Earnings Beat Estimates; Revenue up 9%
• Positive Sentiment: Revenue increased 8.9% to approximately $20.1 billion, and billed business rose 8% to $454 billion. Continued spending by affluent cardholders supported fee growth and helped management raise its 2026 profit outlook to $17.60–$17.90 in adjusted EPS; reported GAAP EPS guidance was raised to $18.30–$18.60. American Express raises 2026 profit forecast as affluent customers keep spending
• Neutral Sentiment: Although results exceeded EPS expectations, revenue was essentially in line with forecasts and network volume was viewed as underwhelming. The performance also highlighted American Express’s reliance on higher-income customers, whose spending remains resilient despite elevated interest rates and inflation. American Express Q3 earnings beat as network volume disappoints
• Negative Sentiment: American Express plans to eliminate about 5% of its global workforce—roughly 3,500 to 4,000 positions—as it seeks to contain rising costs and improve efficiency. The company expects a $336 million restructuring charge, increasing near-term execution and expense concerns. American Express is cutting 5% of its workforce
• Negative Sentiment: The stock’s decline reflects investor concern that cost pressures and the workforce reduction overshadowed the earnings beat and higher guidance. A broader market selloff also added pressure to financial and payment stocks. American Express Raises Profit Outlook, But Layoff Plans and Rising Costs Draw Scrutiny

Wall Street Analysts Forecast Growth

AXP has been the topic of a number of research reports. HSBC upped their price target on shares of American Express from $312.00 to $329.00 and gave the company a “hold” rating in a research note on Monday, July 13th. BTIG Research lowered their target price on American Express from $315.00 to $230.00 and set a “sell” rating on the stock in a research note on Monday, September 7th. Citigroup dropped their price target on American Express from $355.00 to $340.00 and set a “neutral” rating for the company in a report on Wednesday, September 30th. Morgan Stanley reduced their price target on American Express from $382.00 to $380.00 and set an “equal weight” rating for the company in a research note on Monday, October 12th. Finally, Evercore set a $320.00 price objective on American Express in a research report on Thursday, October 1st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $364.89.

American Express Company Profile

American Express Company is a global financial services company that provides payment, lending, travel and expense management products and services. Its offerings include consumer and small-business charge and credit cards, corporate payment programs, business financing solutions, deposit products and digital payment services.

The company operates an integrated payments network that connects card members, merchants and financial institutions. American Express also provides merchant acquisition and payment processing services, data and analytics, fraud prevention tools, and customer loyalty programs.