Full Breakdown
American Express Raises 2026 Profit Outlook on Strong Third-Quarter Spending
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Strong Q3 Performance and Revised Guidance
American Express reported that billings—total spending on its cards—rose 8% to $454 billion in the third quarter, driving revenue up 9% to $20.1 billion. Adjusted profit increased to $4.68 per share, compared with $4.14 per share a year earlier. On the strength of these results, the company lifted its full-year 2026 profit forecast to a range of $18.30–$18.60 per share, up from the prior outlook of $17.30–$17.90. The firm also reduced its credit-loss provisions to $1 billion, down from $1.3 billion in the comparable period a year prior.
Financial Highlights
- Billings: $454 billion, +8% YoY.
- Revenue: $20.1 billion, +9% YoY.
- Adjusted EPS: $4.68, up from $4.14 YoY.
- Credit-loss reserves: $1 billion, down from $1.3 billion YoY.
- Share price: around $325.31, with a 0.8% pre-market gain following the release.
- YTD performance: the stock is down 12.14% versus the S&P 500’s 13.32% gain.
Official Statements & Responses
The executive team highlighted the focus on affluent customers—those with higher credit scores and disposable income—as a buffer against broader economic uncertainty. Analysts cited by market-watch platforms reiterated a positive outlook, maintaining buy ratings and noting the durability of the premium-card ecosystem.
Why It Matters
The results suggest that American Express’s strategy of targeting higher-income cardholders continues to support growth even as the wider economy faces headwinds. The raised profit outlook may reinforce investor confidence in the firm’s premium-card model and its ability to generate stable fee revenue.
Verbatim Quotes
- “Business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality,” — AmEx CEO Stephen Squeri