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American Express Company (AXP - Free Report) used its second-quarter 2026 earnings call to emphasize stronger spending momentum, resilient credit quality and accelerating fee revenues. Management raised its full-year revenue growth outlook to 10% but kept earnings guidance unchanged.
The decision reflects a deliberate choice to reinvest operating upside in customer acquisition, technology and strategic capabilities rather than maximize near-term earnings. That trade-off became the defining issue of the call.
AXP Directs Revenue Upside Back Into Growth
Chairman and CEO Stephen Squeri said the company delivered 10% revenue growth. The company reported earnings of $4.53 per share, up 11% year over year. Reported earnings exceeded the Zacks Consensus Estimate of $4.41. Revenues of $19.64 billion surpassed the Zacks Consensus Estimate by 0.01%.
American Express Company Price, Consensus and EPS Surprise
Squeri said stronger-than-expected first-half performance supported the increase in revenue guidance. However, management maintained its full-year earnings outlook of $17.30 to $17.90 per share.
Rather than allowing the additional revenues to flow directly to earnings or share repurchases, American Express plans to increase spending on customer acquisition, technology development and other growth opportunities.
American Express Sees Platinum-Led Momentum
Squeri identified the refreshed U.S. Platinum products as a major contributor to stronger engagement and spending. The Platinum portfolio became the fastest-growing product group within the U.S. consumer business.
Chief financial officer Christophe Le Caillec said U.S. consumer spending increased 11%, its strongest growth rate since the first quarter of 2018 when pandemic-distorted periods are excluded. He attributed the acceleration to new customers, upgrades and higher spending by existing Platinum members.
Management also highlighted continued success with younger consumers. Millennials and Gen Z accounted for 65% of new U.S. consumer accounts, reinforcing the company’s focus on customers with longer potential relationships.
AXP Expects Card Fee Growth to Accelerate
Le Caillec said net card fees increased 15.4% and remained the company’s fastest-growing revenue line. Card fees have now posted double-digit growth for 32 consecutive quarters.
Management expects fee growth to accelerate during the third quarter and exit 2026 in the high teens. The increase will reflect the gradual recognition of higher Platinum annual fees, which are amortized over 12 months.
The company also acquired three million new cards during the quarter, with 75% of new accounts coming from fee-paying products. Management described that mix as the highest since American Express intensified its premium-product strategy.
American Express Maintains Strong Credit Trends
Le Caillec said credit performance remained better than management had expected entering the year. Delinquency rates have stayed between 1.2% and 1.3% for more than three years, while write-off and delinquency measures remained below 2019 levels.
Provision expense totaled $1.1 billion and included a $191 million reserve release, primarily reflecting improved portfolio performance. The second-quarter net write-off rate was 2.0%, unchanged from the prior-year period.
Management expects credit metrics to remain generally stable through the remainder of 2026. The premium customer mix remains central to its view that credit losses can stay comparatively contained.
AXP Addresses Portfolio Sale Headwinds
Le Caillec said the staggered transfers of two small-business co-brand portfolios will create visible revenue pressure as the year progresses. By the fourth quarter, the sales are expected to reduce spending growth by roughly 1 percentage point and net interest income growth by about 2.5 percentage points.
The combined impact on total revenue growth should be approximately 1 percentage point. Management stressed that the effect on pretax income should be negligible and was already reflected in its original outlook.
During the Q&A, Le Caillec added that underlying spending momentum should continue, although the portfolio transfers will make reported growth appear slower.
American Express Expands Technology and AI Spending
Squeri said American Express is accelerating technology projects that had previously been scheduled for later periods. Investments also include customer acquisition, the proposed purchase of TheFork and capabilities related to agentic commerce.
The company is already using artificial intelligence to shorten coding cycles by 30% to 40%. Management is redeploying that productivity toward completing more projects rather than treating it as immediate cost savings.
AI tools are also supporting customer service and travel representatives. Squeri said staffing has remained broadly stable despite business growth, with longer-term efficiency expected through normal employee attrition.
AXP Keeps Its Focus on Durable Growth
Management’s tone remained confident about spending, retention and credit quality. At the same time, executives were explicit that sustaining double-digit revenue growth requires continued investment.
The company’s priorities remain premium product development, younger-customer acquisition, international expansion, digital capabilities and partnerships that deepen card-member engagement.
The strong Momentum Score indicates favorable price-trend characteristics, while the weaker Growth Score and midrange Value and VGM readings present a mixed style profile. Zacks Style Scores are designed to complement the Zacks Rank, with the strongest combinations generally involving a Zacks Rank #1 or 2 (Buy) and Style Scores of A or B. The Zacks Rank can change as analyst earnings estimates are revised following the reported results.
View the Zacks #1 Rank List
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AXP Q2 Earnings Call Highlights Reinvestment Strategy
Key Takeaways
American Express Company (AXP - Free Report) used its second-quarter 2026 earnings call to emphasize stronger spending momentum, resilient credit quality and accelerating fee revenues. Management raised its full-year revenue growth outlook to 10% but kept earnings guidance unchanged.
The decision reflects a deliberate choice to reinvest operating upside in customer acquisition, technology and strategic capabilities rather than maximize near-term earnings. That trade-off became the defining issue of the call.
AXP Directs Revenue Upside Back Into Growth
Chairman and CEO Stephen Squeri said the company delivered 10% revenue growth. The company reported earnings of $4.53 per share, up 11% year over year. Reported earnings exceeded the Zacks Consensus Estimate of $4.41. Revenues of $19.64 billion surpassed the Zacks Consensus Estimate by 0.01%.
American Express Company Price, Consensus and EPS Surprise
American Express Company price-consensus-eps-surprise-chart | American Express Company Quote
Squeri said stronger-than-expected first-half performance supported the increase in revenue guidance. However, management maintained its full-year earnings outlook of $17.30 to $17.90 per share.
Rather than allowing the additional revenues to flow directly to earnings or share repurchases, American Express plans to increase spending on customer acquisition, technology development and other growth opportunities.
American Express Sees Platinum-Led Momentum
Squeri identified the refreshed U.S. Platinum products as a major contributor to stronger engagement and spending. The Platinum portfolio became the fastest-growing product group within the U.S. consumer business.
Chief financial officer Christophe Le Caillec said U.S. consumer spending increased 11%, its strongest growth rate since the first quarter of 2018 when pandemic-distorted periods are excluded. He attributed the acceleration to new customers, upgrades and higher spending by existing Platinum members.
Management also highlighted continued success with younger consumers. Millennials and Gen Z accounted for 65% of new U.S. consumer accounts, reinforcing the company’s focus on customers with longer potential relationships.
AXP Expects Card Fee Growth to Accelerate
Le Caillec said net card fees increased 15.4% and remained the company’s fastest-growing revenue line. Card fees have now posted double-digit growth for 32 consecutive quarters.
Management expects fee growth to accelerate during the third quarter and exit 2026 in the high teens. The increase will reflect the gradual recognition of higher Platinum annual fees, which are amortized over 12 months.
The company also acquired three million new cards during the quarter, with 75% of new accounts coming from fee-paying products. Management described that mix as the highest since American Express intensified its premium-product strategy.
American Express Maintains Strong Credit Trends
Le Caillec said credit performance remained better than management had expected entering the year. Delinquency rates have stayed between 1.2% and 1.3% for more than three years, while write-off and delinquency measures remained below 2019 levels.
Provision expense totaled $1.1 billion and included a $191 million reserve release, primarily reflecting improved portfolio performance. The second-quarter net write-off rate was 2.0%, unchanged from the prior-year period.
Management expects credit metrics to remain generally stable through the remainder of 2026. The premium customer mix remains central to its view that credit losses can stay comparatively contained.
AXP Addresses Portfolio Sale Headwinds
Le Caillec said the staggered transfers of two small-business co-brand portfolios will create visible revenue pressure as the year progresses. By the fourth quarter, the sales are expected to reduce spending growth by roughly 1 percentage point and net interest income growth by about 2.5 percentage points.
The combined impact on total revenue growth should be approximately 1 percentage point. Management stressed that the effect on pretax income should be negligible and was already reflected in its original outlook.
During the Q&A, Le Caillec added that underlying spending momentum should continue, although the portfolio transfers will make reported growth appear slower.
American Express Expands Technology and AI Spending
Squeri said American Express is accelerating technology projects that had previously been scheduled for later periods. Investments also include customer acquisition, the proposed purchase of TheFork and capabilities related to agentic commerce.
The company is already using artificial intelligence to shorten coding cycles by 30% to 40%. Management is redeploying that productivity toward completing more projects rather than treating it as immediate cost savings.
AI tools are also supporting customer service and travel representatives. Squeri said staffing has remained broadly stable despite business growth, with longer-term efficiency expected through normal employee attrition.
AXP Keeps Its Focus on Durable Growth
Management’s tone remained confident about spending, retention and credit quality. At the same time, executives were explicit that sustaining double-digit revenue growth requires continued investment.
The company’s priorities remain premium product development, younger-customer acquisition, international expansion, digital capabilities and partnerships that deepen card-member engagement.
What the Zacks Signals Indicate
AXP currently carries a Zacks Rank #3 (Hold). Its Value Score is C, Growth Score is F, Momentum Score is A and VGM Score is C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The strong Momentum Score indicates favorable price-trend characteristics, while the weaker Growth Score and midrange Value and VGM readings present a mixed style profile. Zacks Style Scores are designed to complement the Zacks Rank, with the strongest combinations generally involving a Zacks Rank #1 or 2 (Buy) and Style Scores of A or B. The Zacks Rank can change as analyst earnings estimates are revised following the reported results.