American Express Raises 2026 Earnings Per Share Outlook to $18.60
Key Facts
American Express raised the upper end of its 2026 earnings-per-share forecast to $18.60 under accounting standards, and to $17.90 on an adjusted basis, after quarterly results showed increases in profit, revenue and cardmember spending. The company kept its annual revenue growth forecast at 10%, saying in its filing that "our revenue is on track for another year of 10% growth." The new range covers earnings of $18.30 to $18.60 under GAAP, and $17.60 to $17.90 on an adjusted basis. Net revenues, after interest expense, reached a record $20.1 billion in the third quarter, up 9% from the same period last year. Net income was $3.712 billion, compared with $2.902 billion a year earlier, an increase of 28%.
GAAP earnings per share rose 31% to $5.42 in the third quarter, while adjusted earnings increased 13% to $4.68. Adjusted net income was $3.2 billion, excluding a pretax gain of $982 million from the sale of the company’s stake in Global Business Travel Group. The filing distinguishes reported earnings from adjusted earnings: the former includes the effect of the sale gain, while the latter excludes it. The company attributed revenue growth mainly to higher member spending, increased net interest income as card balances grew, and strong card fees. Consolidated expenses rose 9% to $14.5 billion, matching the revenue growth rate for the period.
Cardmember purchases totaled $454.0 billion in the third quarter, up 8% year over year after adjusting for currency effects, compared with $421.0 billion in the same period. Average customer spending was $6,735 during the quarter, up 5% from the prior year. Chief Financial Officer Christophe Le Caillec said some of the increase in spending may be linked to inflation, while the number of transactions per cardmember also rose. By segment, travel and entertainment spending increased 10% year over year, and dollar spending on airline tickets rose 13%. These figures indicate that purchase growth included travel and entertainment, alongside an increase in transaction volume, while the company said overall spending was a key driver of revenue growth.
Card fees helped boost revenue, with net card fees increasing by more than $400 million from a year earlier. The Associated Press reported that the company moved the vast majority of its members to the higher-fee Platinum card, and that most of those moved kept it. American Express had raised the card’s annual fee from $695 to $895 in an update the previous year, an increase of $200 that prompted questions about members’ acceptance of the new fee. The company said most customers who moved to the higher-fee card decided to keep it. Fee growth and customer retention place this update in the context of card revenue, alongside income generated from member spending.
The improved results in the third quarter followed the company’s second-quarter report of earnings of $3.11 billion, up 8% year over year. Average customer spending then was $6,759, compared with $6,393 in the same period a year earlier. In the third quarter, the provision for credit losses fell to $1.0 billion from $1.3 billion a year earlier, and the net write-off rate declined to 1.8% from 1.9%. These figures provide credit indicators alongside growth in purchases and earnings, while third-quarter results included higher net income and increases in reported and adjusted earnings per share. These measures remain part of the picture of the company’s performance as consolidated expenses also rise.
Alongside its results, American Express announced on October 23 a plan to cut its workforce by 5%, or about 3,500 employees. The chief executive said the cuts were aimed at increasing efficiency and did not reflect a decline in business activity. A Kiplinger report linked the job-cut news to a 3.7% fall in the company’s shares in the October 23 session, making it the worst performer among Dow Jones stocks that day. The shares closed at $313.22 in the same session. The news combines a raised annual outlook with a workforce reduction plan, while management said the latter was an efficiency measure rather than a response to weaker activity.
Attention then turns to the Federal Open Market Committee meeting on October 27 and 28, 2026, with a press conference scheduled for October 28. The U.S. Bureau of Economic Analysis will also release its September personal income and spending report on October 29. The data release comes a day after the Fed meeting concludes, as markets track consumer spending, one of the factors American Express linked to its quarterly revenue growth. These economic milestones will provide context for tracking spending and credit trends after the company’s results, without the calendar specifying the meeting’s outcome or its effect on the business.