American Express Surpasses Profit Expectations Amidst Economic Challenges

On April 23, 2026, American Express (AXP.N) reported a first-quarter profit that exceeded Wall Street expectations, driven by robust spending from affluent customers on travel and entertainment. The company's billed business, a measure of total spending on its cards, rose by 9% to $428 billion on a foreign exchange-adjusted basis. Revenue for the quarter reached $18.9 billion, marking a 10% increase compared to the previous year. Chief Financial Officer Christophe Le Caillec noted, "Very strong growth across the board," highlighting an 11% increase in overall retail spending and an 18% rise in luxury retail spending.

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Despite elevated interest rates and inflation concerns, particularly due to rising gasoline prices, American Express's business model remains insulated by its wealthy customer base. Analysts at William Blair remarked on the company's solid results, indicating that "resiliency continued into the March quarter" with accelerated billings growth. The company also set aside $1.3 billion in provisions for credit losses, slightly up from $1.2 billion the previous year.

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Within the travel and entertainment sector, airline spending increased by 8%, despite disruptions caused by the ongoing conflict in the Middle East, which led to airspace closures and higher fares. Le Caillec acknowledged the challenges, stating, "Towards the end of the quarter, we saw some movement and some noise in airline volumes because of the war in the Middle East," referencing the influx of refund requests. Nonetheless, he affirmed the overall strong performance in the airline segment.

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Following the successful quarter, American Express reaffirmed its financial guidance for 2026, projecting revenue growth between 9% and 10% and earnings per share in the range of $17.30 to $17.90. This outlook aligns with the average estimate of $17.56 held by market analysts, indicating confidence in the company's continued growth trajectory.

American Express Beats First Quarter Profit Estimates as Spending Rises

While American Express's results reflect strong performance, some analysts express caution regarding the potential impact of economic volatility on consumer spending. Concerns about inflation and interest rates may affect discretionary spending among even affluent customers, which could pose risks to future growth.

AmEx beats profit estimates as spending growth hits three-year high By Reuters

• "Very strong growth across the board." — Christophe Le Caillec, Chief Financial Officer

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• "We had a very strong start to the year, reflecting continued momentum across our premium customer base and execution of our proven growth strategy." — Stephen Squeri, Chairman and CEO

American Express Beats First Quarter Profit Estimates as Spending Rises

American Express's first-quarter performance illustrates its ability to thrive amid economic challenges, driven by a strong customer base and strategic investments. As the company navigates potential headwinds, its reaffirmed guidance suggests a commitment to maintaining growth in the coming months.

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