American Express (NYSE:AXP) Announces Earnings Results

American Express (NYSE:AXP) released its quarterly earnings results on Friday. The payment services company reported $4.68 earnings per share for the quarter, topping analysts’ consensus estimates of $4.50 by $0.18, FiscalAI reports. American Express had a return on equity of 34.12% and a net margin of 15.07%. The firm had revenue of $20.06 billion during the quarter, compared to analysts’ expectations of $20.12 billion. During the same quarter in the prior year, the business earned $4.14 EPS. American Express’s quarterly revenue was up 8.9% compared to the same quarter last year. 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 Stock Down 3.4%

Shares of NYSE:AXP traded down $11.18 during midday trading on Friday, reaching $313.99. The company had a trading volume of 1,366,156 shares, compared to its average volume of 3,227,381. The stock has a market capitalization of $212.04 billion, a P/E ratio of 19.04, a PEG ratio of 1.38 and a beta of 1.08. The stock’s fifty day moving average price is $319.42 and its 200-day moving average price is $326.03. The company has a debt-to-equity ratio of 1.66, a current ratio of 1.55 and a quick ratio of 1.54. American Express has a one year low of $290.97 and a one year high of $387.49.

American Express Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Investors of record on Friday, October 9th will be paid a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, October 9th. American Express’s payout ratio is 23.06%.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on AXP. The Goldman Sachs Group lifted their price objective on shares of American Express from $400.00 to $410.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Weiss Ratings restated a “hold (c+)” rating on shares of American Express in a research note on Friday, October 9th. JPMorgan Chase & Co. decreased their target price on shares of American Express from $400.00 to $360.00 and set an “overweight” rating for the company in a research note on Monday, October 12th. Jefferies Financial Group reaffirmed a “hold” rating on shares of American Express in a report on Friday. Finally, Evercore set a $320.00 price target on shares of American Express in a research note on Thursday, October 1st. One equities research 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 given a Sell rating to the stock. According to MarketBeat, American Express currently has a consensus rating of “Moderate Buy” and a consensus target price of $365.63.

American Express News Summary

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

• Positive Sentiment: Q3 earnings beat expectations: American Express reported earnings of $4.68 per share, above the $4.47–$4.50 analyst consensus and up from $4.14 a year earlier. The result indicates continued earnings momentum. American Express Beats Q3 Earnings Estimates
• Positive Sentiment: Spending remained robust: Billed business reportedly reached $454 billion, up 8% on a foreign-exchange-adjusted basis, as affluent customers continued spending despite elevated interest rates and inflation. This supports card-fee revenue and credit quality. American Express Raises 2026 Profit Forecast
• Positive Sentiment: Full-year outlook was updated: AXP issued FY 2026 EPS guidance of $17.60–$17.90 and revenue guidance of $79.5 billion, broadly in line with analyst expectations. Reports separately cited a higher $18.30–$18.60 EPS range, so investors may focus on the company’s official release for clarification.
• Positive Sentiment: Travel rewards are expanding: More than one million Airbnb listings are being added to the Amex Travel platform, potentially increasing card engagement and premium-member value. American Express Adds Airbnb Bookings and Rewards
• Negative Sentiment: Workforce reduction announced: The CEO said American Express plans to cut approximately 5% of its total workforce. The move could reduce costs, but it also signals restructuring and may raise concerns about growth or execution. AmEx CEO Says Company to Cut 5% of Workforce

About American Express

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.