American Express (NYSE:AXP) Posts Earnings Results, Misses Expectations By $0.01 EPS

American Express Company (NYSE:AXP) posted its quarterly earnings results on Friday. The payment services company reported $3.53 earnings per share for the quarter, missing the consensus estimate of $3.54 by ($0.01), Briefing.com reports. American Express had a net margin of 14.97% and a return on equity of 33.41%. The firm had revenue of ($17,139.00) million for the quarter, compared to analysts’ expectations of $18.91 billion. During the same quarter in the previous year, the firm posted $3.04 EPS. The firm’s revenue for the quarter was up 10.5% compared to the same quarter last year. American Express updated its FY 2026 guidance to 17.300-17.900 EPS.

Here are the key takeaways from American Express’ conference call:

• Management guided 2026 to 9%–10% revenue growth and EPS of $17.30–$17.90 and announced a 16% raise in the quarterly dividend to $0.95, signaling confidence in sustained earnings and shareholder returns.
• American Express reported record 2025 results — revenue $72 billion (+10%), EPS $15.38 (+15% ex‑Accertify), net card fees reached $10 billion, ROE was 34%, and $7.6 billion of capital was returned to shareholders.
• The company is materially stepping up investments (marketing $6.3B, technology ~$5B annually) and expects VCE-to-revenue around 44% in 2026, which supports long‑term growth but raises near‑term expense levels.
• Management is reallocating marketing toward premium, fee‑paying products (notably the new U.S. Platinum), lifting the fee‑paying mix by ~8 percentage points with high retention and strong app-driven engagement that is boosting spend.
• Management flagged risks including macro/political uncertainty (e.g., proposed 10% credit cap), intensified commercial/SMB competition and middle‑market softness, and potential seasonal variation in credit provisions.

American Express Stock Down 1.8%

AXP opened at $352.14 on Friday. The company has a fifty day moving average of $369.37 and a two-hundred day moving average of $343.61. The stock has a market capitalization of $242.57 billion, a price-to-earnings ratio of 23.63, a PEG ratio of 1.50 and a beta of 1.15. American Express Company has a fifty-two week low of $220.43 and a fifty-two week high of $387.49. The company has a debt-to-equity ratio of 1.78, a quick ratio of 1.59 and a current ratio of 1.61.

American Express Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 10th. Shareholders of record on Friday, January 2nd will be issued a $0.82 dividend. The ex-dividend date of this dividend is Friday, January 2nd. This represents a $3.28 dividend on an annualized basis and a yield of 0.9%. American Express’s payout ratio is presently 22.01%.

Hedge Funds Weigh In On American Express

Several institutional investors and hedge funds have recently modified their holdings of AXP. Vanguard Group Inc. lifted its position in shares of American Express by 1.3% during the 2nd quarter. Vanguard Group Inc. now owns 46,425,262 shares of the payment services company’s stock valued at $14,808,730,000 after buying an additional 581,369 shares in the last quarter. Geode Capital Management LLC raised its position in American Express by 11.1% during the second quarter. Geode Capital Management LLC now owns 13,487,316 shares of the payment services company’s stock worth $4,282,984,000 after acquiring an additional 1,349,746 shares during the period. Fisher Asset Management LLC lifted its holdings in American Express by 1.7% during the third quarter. Fisher Asset Management LLC now owns 8,881,546 shares of the payment services company’s stock valued at $2,950,095,000 after purchasing an additional 146,586 shares in the last quarter. Norges Bank acquired a new stake in shares of American Express in the second quarter valued at about $1,897,335,000. Finally, Capital World Investors grew its position in shares of American Express by 0.5% in the third quarter. Capital World Investors now owns 5,122,335 shares of the payment services company’s stock valued at $1,701,435,000 after purchasing an additional 24,297 shares during the period. Hedge funds and other institutional investors own 84.33% of the company’s stock.

Analyst Ratings Changes

Several brokerages recently weighed in on AXP. Wall Street Zen downgraded shares of American Express from a “buy” rating to a “hold” rating in a report on Sunday, November 9th. Weiss Ratings raised shares of American Express from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, December 29th. BTIG Research reissued a “sell” rating and set a $328.00 target price on shares of American Express in a report on Monday, January 12th. The Goldman Sachs Group restated a “buy” rating and set a $420.00 target price on shares of American Express in a research report on Tuesday, January 6th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $425.00 price target on shares of American Express in a report on Monday, January 12th. Nine equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $353.95.

More American Express News

Here are the key news stories impacting American Express this week:

• Positive Sentiment: Management set FY2026 EPS guidance of $17.30–$17.90 and revenue guidance roughly $78.7B–$79.5B, which sits at/above Street revenue expectations and implies mid‑high single‑digit growth — a key reason investors are focusing on the outlook rather than the quarterly miss.
• Positive Sentiment: Q4 revenue grew ~10% y/y and card‑member spending remained strong, supporting the company’s growth narrative and the confident 2026 outlook. AXP Stock Falls Despite Revenue Beat After Q4 Earnings Report
• Positive Sentiment: Board approved a meaningful dividend increase (reported as ~16%), which is supportive for income‑oriented investors and signals confidence in cash flow. American Express Posts Strong 2025 Results, Raises Dividend
• Neutral Sentiment: Analysts have mixed/timely coverage — some firms reiterate buy ratings citing attractive risk/reward and valuation upside, which could limit downside if results stay in-line with guidance. American Express: Attractive Risk-Reward, Solid Growth Outlook
• Negative Sentiment: Q4 EPS of $3.53 slightly missed consensus (by ~$0.01–$0.04 depending on source), and some headlines emphasize the profit miss as a near‑term catalyst for selling pressure. Scorecard: Grading American Express Q4 Earnings
• Negative Sentiment: Rising customer‑engagement and operating costs were called out on the call and in analyst notes as the main drag on margin expansion, which clouds near‑term EPS trajectory. AXP Q4 Earnings Lag Estimates on Rising Customer Engagement Costs
• Negative Sentiment: Regulatory risk headlines (discussion of a potential credit‑card rate cap) and a strategic shift to higher‑fee premium cards (more marketing to Platinum vs. no‑fee products) create execution and political/regulatory uncertainty that can pressure sentiment. American Express, credit card provider to the wealthy, wants even more high spenders CEO on rate cap

American Express Company Profile

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.