American Express Raises 2026 Minimum Earnings Forecast to $17.60 a Share
Key Facts
American Express raised the low end of its 2026 adjusted earnings forecast to $17.60 a share, from $17.30, and kept the high end at $17.90, according to the Associated Press. The company also raised its forecast for reported earnings to a range of $18.30 to $18.60 a share, according to Reuters. The guidance update comes as cardholders continued to spend, with billed business and revenue increasing in the third quarter. Chief Executive Stephen Squeri said business momentum continued, supported by strong billings, new member acquisition and cardholder retention. He added that the company recorded “excellent credit quality.”
Net income was $3.71 billion in the third quarter, up 28% from the same period a year earlier, while reported earnings reached $5.42 a share, according to the Associated Press. Adjusted earnings were $4.68 a share after excluding a one-time gain from the sale of the company’s stake in Global Business Travel Group. Billed business, a measure of total spending on cards issued by American Express, rose 8% to $454 billion. Revenue climbed 9% to $20.1 billion during the quarter, according to Reuters. These indicators reflect increased card activity alongside growth in revenue and earnings.
Travel and entertainment spending was among the main drivers of activity, rising 10% year over year in the third quarter, according to Reuters. Airline spending increased 13%, while restaurant spending rose 9%. The chief financial officer said higher average ticket values and airfares contributed to growth in the airline category. An increase in the number of transactions per card member also supported spending, according to the CFO’s comments on average customer spending. Average customer spending was $6,735 during the quarter, or $2,245 a month, up 5% from a year earlier, according to the Associated Press.
Airlines are facing higher fuel costs, with carriers around the world raising ticket prices in recent months as fuel prices climbed amid the Middle East conflict and disruptions to global oil flows, according to Reuters. That puts the growth in American Express’s reported airline spending in a context shaped by both price changes and card usage. Meanwhile, consolidated expenses rose 9% to $14.5 billion in the third quarter. The company attributed the increase mainly to higher variable customer engagement costs as spending grew, and to the U.S. Platinum Card refresh. Lower operating expenses partly offset those increases.
Credit indicators improved from a year earlier, with provisions for credit losses falling to $1 billion in the third quarter from $1.3 billion a year earlier. American Express said the decline reflected reserve releases in the current quarter, compared with reserve builds in the year-earlier period. The net write-off rate also fell to 1.8% from 1.9% a year earlier. These figures accompany the company’s emphasis on credit quality as it continues to monitor spending and the costs of serving cardholders. The stock rose 0.8% in premarket trading on October 23 after the results were announced, according to Reuters.
American Express shares closed at $325.17 on October 22, according to EL7 data. The company scheduled a call to discuss third-quarter results for 8:30 a.m. Eastern time on October 23, 2026. It said the live audio webcast and presentation slides would be available to the public through its investor relations website. The call gives the company an opportunity to present details of the quarterly results and its annual outlook to investors. The expected 2026 adjusted earnings range remains $17.60 to $17.90 a share, alongside a reported earnings forecast of $18.30 to $18.60 a share.