American Express (NYSE:AXP) Issues Quarterly Earnings Results

American Express Company (NYSE:AXP) announced its earnings results on Friday. The payment services company reported $3.53 earnings per share for the quarter, missing analysts’ consensus estimates of $3.56 by ($0.03), Briefing.com reports. American Express had a return on equity of 33.41% and a net margin of 14.97%.The firm had revenue of ($17,139.00) million for the quarter, compared to the consensus estimate of $18.91 billion. During the same period in the prior year, the business earned $3.04 EPS. American Express’s quarterly revenue was up 10.5% on a year-over-year basis.

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 Down 3.6%

Shares of AXP stock traded down $12.90 during midday trading on Friday, reaching $345.60. 2,296,682 shares of the stock were exchanged, compared to its average volume of 2,975,704. American Express Company has a 1 year low of $220.43 and a 1 year high of $387.49. The firm has a market cap of $238.07 billion, a PE ratio of 23.21, a price-to-earnings-growth ratio of 1.50 and a beta of 1.15. The company’s 50 day moving average is $369.39 and its two-hundred day moving average 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 Announces Dividend

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

More American Express News

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

• Positive Sentiment: Company raised full?year guidance and forecasted 2026 revenue growth of ~9–10% with EPS guidance in a roughly $17.30–$17.90 range — supports longer?term earnings outlook. Read More.
• Positive Sentiment: Fourth?quarter revenue (~$19.0B) topped expectations and total card?member spend rose ~9%, showing resilient affluent consumer activity. Read More.
• Positive Sentiment: Board approved a ~16% dividend increase, signaling confidence in cash flow and capital returns. Read More.
• Positive Sentiment: At least one sell?side shop (William Blair) reiterated a Buy rating, citing attractive risk/reward, growth outlook and valuation upside. Read More.
• Neutral Sentiment: Quarterly transcript and metric comparisons provide detail for modeling (mix of beats/misses across line items); useful for reassessing 2026 estimates. Read More. • Read More.
• Negative Sentiment: EPS slightly missed or was essentially in line with consensus (reported ~$3.53 vs. estimates around $3.54), and investors are focused on the miss. Read More.
• Negative Sentiment: Operating expenses rose and management flagged slower new?card growth/higher costs, which could pressure near?term margins and force investors to reprice near?term earnings. Read More.
• Negative Sentiment: Political/regulatory risk — proposals to cap credit?card interest rates attracted commentary and could, if enacted, hit net interest income and margins; management publicly opposed rate caps. Read More. • Read More.

Analyst Upgrades and Downgrades

AXP has been the topic of several research reports. Wolfe Research started coverage on shares of American Express in a report on Monday, December 8th. They set a “peer perform” rating on the stock. UBS Group set a $385.00 target price on American Express in a research note on Monday, January 12th. Barclays upped their price objective on American Express from $355.00 to $367.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 6th. Compass Point reiterated a “neutral” rating and set a $324.00 target price on shares of American Express in a research report on Monday, October 20th. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $425.00 price objective on shares of American Express in a report on Monday, January 12th. Nine investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, American Express has an average rating of “Hold” and a consensus target price of $353.95.

Institutional Investors Weigh In On American Express

Institutional investors have recently modified their holdings of the stock. Nordea Investment Management AB raised its stake in American Express by 2.2% in the 2nd quarter. Nordea Investment Management AB now owns 2,267,377 shares of the payment services company’s stock worth $721,525,000 after acquiring an additional 49,593 shares during the last quarter. ZEGA Investments LLC purchased a new position in American Express in the third quarter valued at $1,080,000. Sumitomo Mitsui Trust Group Inc. grew its holdings in American Express by 0.3% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,598,743 shares of the payment services company’s stock valued at $531,038,000 after purchasing an additional 4,080 shares during the period. Dempze Nancy E raised its position in American Express by 210.2% during the second quarter. Dempze Nancy E now owns 3,459 shares of the payment services company’s stock worth $1,103,000 after acquiring an additional 2,344 shares during the period. Finally, Reliant Investment Management LLC increased its position in shares of American Express by 1.9% during the second quarter. Reliant Investment Management LLC now owns 26,189 shares of the payment services company’s stock worth $8,354,000 after purchasing an additional 480 shares in the last quarter. 84.33% of the stock is owned by hedge funds and other institutional investors.

About American Express

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.