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American Express Q3 Earnings Beat Estimates on Strong Card Fees
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Key Takeaways
American Express' Q3 adjusted EPS rose 13% to $4.68, beating estimates by 4.7%, while revenues grew 9%.
Higher Card Member spending, net interest income and card fees drove growth, while expenses rose 9%.
AXP raises its 2026 GAAP EPS outlook to $18.30-$18.60 and reaffirms its 10% revenue growth forecast.
American Express Company (AXP - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $4.68, which surpassed the Zacks Consensus Estimate by 4.7%. The bottom line advanced 13% year over year.
Total revenues, net of interest expense, improved 9% year over year to $20.1 billion. However, the top line missed the consensus mark by a whisker.
The quarterly earnings were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.
American Express Company Price, Consensus and EPS Surprise
Network volumes grew 8% year over year in the third quarter to $517.9 billion on the back of higher U.S. consumer spending. But the metric missed the Zacks Consensus Estimate of $520.5 billion. Total interest income of $6.9 billion rose 4% year over year but missed the consensus mark of $7 billion. Provision for credit losses came in at $985 million, which declined 23% year over year in the quarter under review due to a reserve release during the quarter compared to a reserve build in the prior-year quarter.
Total expenses increased 9% year over year to $14.5 billion due to higher variable customer engagement costs resulting from increased spending by Card Members and the refresh of the U.S. Platinum Card.
AXP’s Q3 Segmental Performances
The U.S. Consumer Services segment recorded pre-tax income of $2.3 billion, which grew 24% year over year and beat the Zacks Consensus Estimate by 36.2%. Total revenues, net of interest expenses, improved 11% year over year to $9.8 billion but missed the Zacks Consensus Estimate by 3%. An expanding Gen-Z and Millennial customer base favored this segment’s results.
The Commercial Services segment’s pre-tax income of $1 billion fell 6% year over year in the third quarter but beat the Zacks Consensus Estimate of $950.5 million. Total revenues, net of interest expense, grew 6% year over year to $4.6 billion, and beat the consensus mark of $4.4 billion.
The International Card Services segment posted pre-tax income of $432 million, which declined 2% year over year and missed the Zacks Consensus Estimate of $698.4 million. Total revenues, net of interest expense, climbed 10% year over year to $3.7 billion but missed the consensus mark of $3.8 billion.
The Global Merchant and Network Services segment’s pre-tax income of $1.1 billion advanced 4% year over year in the quarter under review but missed the Zacks Consensus Estimate of $1.2 billion. Total revenues, net of interest expense, improved 6% year over year to $2.1 billion but came in lower than the consensus mark by 1.5%.
Corporate and Other incurred a pre-tax loss of $307 million in the third quarter, narrower than the prior-year quarter’s loss of $598 million.
Balance Sheet (As of Sept. 30, 2026)
American Express exited the third quarter with cash & cash equivalents of $43.2 billion, which fell 9.6% from the 2025-end level. Total assets of $310.3 billion increased 3.4% from the figure at the end of 2025.
Long-term debt amounted to $58.5 billion, up 3.8% from the figure as of Dec. 31, 2025. Short-term borrowing was $1.4 billion.
Shareholders’ equity of $35.8 billion rose 6.9% from the 2025-end level. Return on average common equity stood at 43.6%, compared with 37.3% a year ago.
Capital Deployment Update
American Express bought back 5 million common shares in the third quarter of 2026 for $1.6 billion and paid $600 million worth of dividends. In the quarter under review, the company paid a per-share dividend of 95 cents.
AXP’s 2026 Outlook
American Express raised its 2026 GAAP EPS guidance to $18.30-$18.60 from its previous projection of $17.30-$17.90. The midpoint of which now indicates an improvement of 20% from the 2025 figure.
Management anticipates adjusted EPS to be in the range of $17.60-$17.90 for 2026.
The company reaffirmed its expectation of 10% revenue growth for 2026, supported by continued momentum in Card Member spending, customer acquisitions and its premium membership offerings.
The Zacks Consensus Estimate for American Integrity Insurance’s current-quarter earnings of 49 cents per share has remained stable over the past seven days. AII beat earnings estimates in each of the trailing four quarters, with the average surprise being 46.6%. The consensus estimate for current-quarter revenues is pegged at $105.4 million, implying 70.1% year-over-year growth.
The Zacks Consensus Estimate for Mercury General’s current-quarter earnings of $3.35 per share has remained stable over the past 60 days. MCY beat earnings estimates in each of the trailing four quarters, with the average surprise being 70.2%. The consensus estimate for current-quarter revenues is pegged at $1.6 billion, calling for 8.8% year-over-year growth.
The Zacks Consensus Estimate for Robinhood Markets’ current-quarter earnings is pegged at 56 cents per share and has witnessed one upward revision in the past seven days against no movement in the opposite direction. HOOD beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 15.1%. The consensus estimate for current-quarter revenues is pegged at $1.4 billion, calling for 13.1% year-over-year growth.
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American Express Q3 Earnings Beat Estimates on Strong Card Fees
Key Takeaways
American Express Company (AXP - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $4.68, which surpassed the Zacks Consensus Estimate by 4.7%. The bottom line advanced 13% year over year.
Total revenues, net of interest expense, improved 9% year over year to $20.1 billion. However, the top line missed the consensus mark by a whisker.
The quarterly earnings were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.
American Express Company Price, Consensus and EPS Surprise
American Express Company price-consensus-eps-surprise-chart | American Express Company Quote
AXP’s Q3 Operational Performance
Network volumes grew 8% year over year in the third quarter to $517.9 billion on the back of higher U.S. consumer spending. But the metric missed the Zacks Consensus Estimate of $520.5 billion. Total interest income of $6.9 billion rose 4% year over year but missed the consensus mark of $7 billion. Provision for credit losses came in at $985 million, which declined 23% year over year in the quarter under review due to a reserve release during the quarter compared to a reserve build in the prior-year quarter.
Total expenses increased 9% year over year to $14.5 billion due to higher variable customer engagement costs resulting from increased spending by Card Members and the refresh of the U.S. Platinum Card.
AXP’s Q3 Segmental Performances
The U.S. Consumer Services segment recorded pre-tax income of $2.3 billion, which grew 24% year over year and beat the Zacks Consensus Estimate by 36.2%. Total revenues, net of interest expenses, improved 11% year over year to $9.8 billion but missed the Zacks Consensus Estimate by 3%. An expanding Gen-Z and Millennial customer base favored this segment’s results.
The Commercial Services segment’s pre-tax income of $1 billion fell 6% year over year in the third quarter but beat the Zacks Consensus Estimate of $950.5 million. Total revenues, net of interest expense, grew 6% year over year to $4.6 billion, and beat the consensus mark of $4.4 billion.
The International Card Services segment posted pre-tax income of $432 million, which declined 2% year over year and missed the Zacks Consensus Estimate of $698.4 million. Total revenues, net of interest expense, climbed 10% year over year to $3.7 billion but missed the consensus mark of $3.8 billion.
The Global Merchant and Network Services segment’s pre-tax income of $1.1 billion advanced 4% year over year in the quarter under review but missed the Zacks Consensus Estimate of $1.2 billion. Total revenues, net of interest expense, improved 6% year over year to $2.1 billion but came in lower than the consensus mark by 1.5%.
Corporate and Other incurred a pre-tax loss of $307 million in the third quarter, narrower than the prior-year quarter’s loss of $598 million.
Balance Sheet (As of Sept. 30, 2026)
American Express exited the third quarter with cash & cash equivalents of $43.2 billion, which fell 9.6% from the 2025-end level. Total assets of $310.3 billion increased 3.4% from the figure at the end of 2025.
Long-term debt amounted to $58.5 billion, up 3.8% from the figure as of Dec. 31, 2025. Short-term borrowing was $1.4 billion.
Shareholders’ equity of $35.8 billion rose 6.9% from the 2025-end level. Return on average common equity stood at 43.6%, compared with 37.3% a year ago.
Capital Deployment Update
American Express bought back 5 million common shares in the third quarter of 2026 for $1.6 billion and paid $600 million worth of dividends. In the quarter under review, the company paid a per-share dividend of 95 cents.
AXP’s 2026 Outlook
American Express raised its 2026 GAAP EPS guidance to $18.30-$18.60 from its previous projection of $17.30-$17.90. The midpoint of which now indicates an improvement of 20% from the 2025 figure.
Management anticipates adjusted EPS to be in the range of $17.60-$17.90 for 2026.
The company reaffirmed its expectation of 10% revenue growth for 2026, supported by continued momentum in Card Member spending, customer acquisitions and its premium membership offerings.
AXP’s Zacks Rank & Key Picks
AXP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are American Integrity Insurance Group Inc. (AII - Free Report) , Mercury General Corporation (MCY - Free Report) and Robinhood Markets, Inc. (HOOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Integrity Insurance’s current-quarter earnings of 49 cents per share has remained stable over the past seven days. AII beat earnings estimates in each of the trailing four quarters, with the average surprise being 46.6%. The consensus estimate for current-quarter revenues is pegged at $105.4 million, implying 70.1% year-over-year growth.
The Zacks Consensus Estimate for Mercury General’s current-quarter earnings of $3.35 per share has remained stable over the past 60 days. MCY beat earnings estimates in each of the trailing four quarters, with the average surprise being 70.2%. The consensus estimate for current-quarter revenues is pegged at $1.6 billion, calling for 8.8% year-over-year growth.
The Zacks Consensus Estimate for Robinhood Markets’ current-quarter earnings is pegged at 56 cents per share and has witnessed one upward revision in the past seven days against no movement in the opposite direction. HOOD beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 15.1%. The consensus estimate for current-quarter revenues is pegged at $1.4 billion, calling for 13.1% year-over-year growth.