American Express (AXP) Tops Q3 Profit Estimates as Card Spending Rises 8%
AmEx earned an adjusted $4.68 a share, above the $4.48 LSEG estimate, but revenue of $20.06 billion was just short of the $20.12 billion expected. It raised its 2026 forecast.
American Express (AXP) reported third-quarter revenue of $20.06 billion, net of interest expense, up 9% year on year but slightly below the $20.12 billion analysts expected, according to LSEG data cited by 24/7 Wall St. Adjusted earnings per share rose 13% to $4.68, beating the $4.48 consensus, while earnings under standard accounting (GAAP) were $5.42 a share thanks to a one-time gain. The shares closed at $325.17 on Thursday; regular trading opens at 9:30 a.m. ET.
What stood out
Card members kept spending. Billed business, the total charged on AmEx cards, rose 8% to $454.0 billion from $421.0 billion a year earlier, the company said in its results release. Revenue growth was 9% with or without currency effects, and net income rose 28% to $3.71 billion.
Credit also improved: provisions for bad loans fell to $1.0 billion from $1.3 billion, helped by a release of reserves, and the net write-off rate dipped to 1.8% from 1.9%.
The gap between the two EPS figures comes from two one-off items. AmEx booked a $982 million pretax gain on selling its stake in Global Business Travel Group, worth $1.11 a share after tax, and a $336 million pretax restructuring charge for what it called efficiency initiatives, worth $0.37 a share after tax. The release didn’t say what the restructuring involves; management hosts its call at 8:30 a.m. ET.
“We had another strong quarter, delivering 9 percent revenue growth and EPS of $5.42,” said Chief Executive Stephen Squeri.
The outlook
AmEx raised its 2026 GAAP EPS forecast to $18.30 to $18.60, from the $17.30 to $17.90 it forecast in July, according to its second-quarter release. Most of that raise is the one-time gain. On an adjusted basis, the range is $17.60 to $17.90, so only the low end moved.
The adjusted midpoint of $17.75 is above the $17.63 analysts expected, according to LSEG data cited by Reuters. Squeri said AmEx is on track for “another year of 10 percent revenue growth.”
Our take
The good: adjusted profit grew 13% on 8% more spending, and provisions for bad loans fell. The less good: revenue was a hair light and the headline guidance raise is mostly a one-time gain. On the call, we want to hear what the $336 million restructuring covers and how much it saves.
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