American Express (NYSE:AXP) Posts Earnings Results, Misses Expectations By $0.01 EPS

American Express Company (NYSE:AXP) issued its earnings results on Friday. The payment services company reported $3.53 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.54 by ($0.01), Briefing.com reports. American Express had a return on equity of 33.41% and a net margin of 14.97%.The company had revenue of ($17,139.00) million during the quarter, compared to analyst estimates of $18.91 billion. During the same quarter in the previous year, the firm earned $3.04 earnings per share. The business’s revenue was up 10.5% compared to the same quarter last year. American Express updated its FY 2026 guidance to 17.300-17.900 EPS.

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

• Management guided 2026 to 9%–10% revenue growth and EPS of $17.30–$17.90 and announced a 16% raise in the quarterly dividend to $0.95, signaling confidence in sustained earnings and shareholder returns.
• American Express reported record 2025 results — revenue $72 billion (+10%), EPS $15.38 (+15% ex?Accertify), net card fees reached $10 billion, ROE was 34%, and $7.6 billion of capital was returned to shareholders.
• The company is materially stepping up investments (marketing $6.3B, technology ~$5B annually) and expects VCE-to-revenue around 44% in 2026, which supports long?term growth but raises near?term expense levels.
• Management is reallocating marketing toward premium, fee?paying products (notably the new U.S. Platinum), lifting the fee?paying mix by ~8 percentage points with high retention and strong app-driven engagement that is boosting spend.
• Management flagged risks including macro/political uncertainty (e.g., proposed 10% credit cap), intensified commercial/SMB competition and middle?market softness, and potential seasonal variation in credit provisions.

American Express Stock Performance

Shares of NYSE AXP traded down $6.36 during mid-day trading on Friday, hitting $352.14. The company had a trading volume of 4,386,478 shares, compared to its average volume of 3,074,865. The stock’s 50-day moving average price is $369.39 and its 200-day moving average price is $343.39. The company has a current ratio of 1.61, a quick ratio of 1.59 and a debt-to-equity ratio of 1.78. American Express Company has a 1 year low of $220.43 and a 1 year high of $387.49. The company has a market capitalization of $242.57 billion, a price-to-earnings ratio of 23.63, a P/E/G ratio of 1.50 and a beta of 1.15.

American Express Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 10th. Shareholders of record on Friday, January 2nd will be given a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Friday, January 2nd. American Express’s dividend payout ratio (DPR) is currently 22.01%.

American Express News Summary

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

• Positive Sentiment: Company raised guidance for 2026 (revenue growth ~9–10% and EPS $17.30–$17.90) and announced a ~16% dividend increase, signaling management confidence in cash flow and affluent customer demand. American Express Company (AXP) Q4 2025 Earnings Call Transcript
• Positive Sentiment: Card-member spending remained resilient (roughly +9% year-over-year) and management highlighted strength among younger, affluent customers — a key driver of revenue and fee income. AmEx projects upbeat 2026 profit as affluent spending holds up; shares dip
• Neutral Sentiment: Revenue was roughly flat-to-slightly-above some estimates (~$18.98B), with different outlets characterizing the top line as a beat or in-line; overall growth of ~10% y/y supports the company’s forward outlook. American Express (AXP) Stock Falls Despite Revenue Beat After Q4 Earnings Report
• Neutral Sentiment: Some analysts remain constructive (e.g., William Blair reiterated a Buy), which can provide support if management delivers on 2026 targets. American Express: Attractive Risk-Reward, Solid Growth Outlook, and Valuation Upside Support Buy Rating
• Negative Sentiment: Q4 EPS of $3.53 missed consensus by a small margin (~$3.56–$3.57), and higher expenses weighed on profitability — the primary near-term reason the stock traded down. Scorecard: Grading American Express Q4 Earnings
• Negative Sentiment: Management flagged rising costs and slower new-card growth, which could pressure margins if trends persist through 2026. American Express Q4 earnings miss as expenses rise, new card growth slows
• Negative Sentiment: Political/regulatory risk: CEO warned against proposed credit-card rate caps — ongoing policy debate could introduce investor uncertainty around net interest income and margins. American Express CEO says a credit card rate cap wouldn’t be good for the economy

Analyst Ratings Changes

AXP has been the subject of several recent analyst reports. DZ Bank raised shares of American Express from a “sell” rating to a “hold” rating and set a $340.00 price objective for the company in a report on Tuesday, October 21st. Compass Point reaffirmed a “neutral” rating and set a $324.00 price objective on shares of American Express in a research note on Monday, October 20th. UBS Group set a $385.00 price objective on American Express in a research report on Monday, January 12th. BTIG Research reaffirmed a “sell” rating and set a $328.00 price target on shares of American Express in a research report on Monday, January 12th. Finally, Wolfe Research started coverage on American Express in a report on Monday, December 8th. They set a “peer perform” rating for the company. Nine analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $353.95.

Hedge Funds Weigh In On American Express

Several large investors have recently modified their holdings of AXP. Norges Bank bought a new stake in American Express during the 2nd quarter valued at $1,897,335,000. Laurel Wealth Advisors LLC boosted its position in American Express by 31,595.9% in the second quarter. Laurel Wealth Advisors LLC now owns 1,742,009 shares of the payment services company’s stock valued at $555,666,000 after buying an additional 1,736,513 shares during the last quarter. Geode Capital Management LLC increased its holdings in American Express by 11.1% in the 2nd quarter. Geode Capital Management LLC now owns 13,487,316 shares of the payment services company’s stock worth $4,282,984,000 after buying an additional 1,349,746 shares during the period. Ameriprise Financial Inc. increased its stake in shares of American Express by 27.0% in the third quarter. Ameriprise Financial Inc. now owns 3,970,416 shares of the payment services company’s stock worth $1,310,515,000 after acquiring an additional 845,283 shares during the period. Finally, Provident Trust Co. raised its stake in shares of American Express by 136.6% during the 2nd quarter. Provident Trust Co. now owns 1,108,971 shares of the payment services company’s stock valued at $353,740,000 after buying an additional 640,214 shares during the last quarter. Hedge funds and other institutional investors own 84.33% of the company’s stock.

American Express Company Profile

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.