American Express (NYSE:AXP) Releases Quarterly Earnings Results, Beats Expectations By $0.18 EPS

American Express (NYSE:AXP) announced its earnings results on Friday. The payment services company reported $4.68 earnings per share for the quarter, beating the consensus estimate of $4.50 by $0.18, FiscalAI reports. American Express had a return on equity of 34.12% and a net margin of 15.07%. The company had revenue of $20.06 billion during the quarter, compared to the consensus estimate of $20.12 billion. During the same period last year, the firm earned $4.14 earnings per share. The company’s revenue was up 8.9% on a year-over-year basis. American Express updated its FY 2026 guidance to 17.600-17.900 EPS.

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

• Strong Q3 performance: Revenue reached a record $20.1 billion, up 9%, while adjusted EPS rose 13% to $4.68. Management reaffirmed 10% full-year revenue growth guidance and raised reported EPS guidance to $18.30–$18.60.
• Customer trends remained healthy, with billed business up 8%, U.S. consumer spending up 9.4%, and travel-and-entertainment spending up 10%. Net card fees accelerated to 17% growth, new card acquisitions reached 3.1 million, and credit quality remained strong with stable delinquencies and write-offs growing only 3%.
• Management expects card-member service expense growth to moderate significantly in Q4 as the company laps last year’s Platinum refresh. This could support operating leverage, while the company continues investing in marketing, technology, Airbnb benefits, corporate products, and expense-management capabilities.
• American Express outlined an extensive AI strategy spanning personalized membership benefits, customer acquisition, engagement, agentic payments, and customer service. Management sees AI as a long-term growth opportunity but acknowledged that agentic transaction volumes remain small and that implementation will require disciplined investment and controls.
• The company recorded a $336 million restructuring charge, expected to eliminate approximately 5% of global positions, and recognized $0.51 per share in additional legal reserves, including the unreserved portion of an OCC civil money penalty. Management said the regulatory orders do not impose an asset cap and that remediation costs are not expected to affect 2027 guidance.

American Express Stock Performance

Shares of American Express stock opened at $313.10 on Friday. The company has a debt-to-equity ratio of 1.66, a quick ratio of 1.54 and a current ratio of 1.55. American Express has a 1 year low of $290.97 and a 1 year high of $387.49. The firm’s 50-day simple moving average is $318.84 and its 200-day simple moving average is $325.94. The firm has a market cap of $211.44 billion, a PE ratio of 17.63, a price-to-earnings-growth ratio of 1.33 and a beta of 1.08.

American Express Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 9th will be paid a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, October 9th. American Express’s dividend payout ratio is 21.40%.

Key Stories Impacting American Express

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

• Positive Sentiment: Strong third-quarter results: American Express reported adjusted EPS of $4.68, above the $4.50 consensus estimate, while revenue rose 8.9% year over year to approximately $20.1 billion. Billed business increased 8% to $454 billion, supported by higher card spending, fees and interest income. American Express Q3 Earnings Beat Estimates on Strong Card Fees
• Positive Sentiment: Profit outlook increased: Management raised its 2026 adjusted EPS forecast to $17.60–$17.90, while reported coverage cited GAAP EPS guidance of $18.30–$18.60. Lower credit-loss provisions and continued spending by affluent customers supported the improved outlook. American Express raises 2026 profit forecast as affluent customers keep spending
• Positive Sentiment: Customer engagement initiatives: American Express is expanding its travel ecosystem by adding Airbnb listings and rewards to Amex Travel, potentially strengthening premium-card retention and spending. American Express brings Airbnb bookings and rewards to Amex Travel platform
• Neutral Sentiment: Premium-card benefit changes: Updates to the Platinum Card’s hotel and airport perks, including a revised $600 hotel credit beginning in 2027, could improve the value proposition for some members but may also introduce additional restrictions. Amex Platinum benefits updates
• Negative Sentiment: AI-related layoffs overshadowed the earnings beat: American Express plans to eliminate about 5% of its global workforce—roughly 3,500 to 4,000 positions—and will record a $336 million restructuring charge. Investors may view the move as evidence of rising costs and execution risk, even though it could generate longer-term efficiency gains. American Express is cutting 5% of its workforce
• Negative Sentiment: Revenue and network-volume performance were only broadly in line with expectations: This limited the positive impact of the earnings and guidance improvements, particularly amid a broader market decline and investor concerns about consumer resilience outside American Express’s affluent customer base. American Express Q3 earnings beat as network volume disappoints

Wall Street Analysts Forecast Growth

AXP has been the subject of a number of analyst reports. Truist Financial reduced their price target on American Express from $375.00 to $370.00 and set a “buy” rating for the company in a report on Wednesday, September 23rd. Royal Bank Of Canada lowered their price objective on American Express from $415.00 to $400.00 and set an “outperform” rating for the company in a research note on Friday, October 9th. HSBC lifted their price objective on American Express from $312.00 to $329.00 and gave the stock a “hold” rating in a report on Monday, July 13th. JPMorgan Chase & Co. cut their target price on American Express from $400.00 to $360.00 and set an “overweight” rating on the stock in a research report on Monday, October 12th. Finally, Evercore set a $320.00 target price on American Express in a research report on Thursday, October 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $364.89.

American Express Company Profile

American Express Company is a global financial services company that provides payment, lending, travel and expense management products and services. Its offerings include consumer and small-business charge and credit cards, corporate payment programs, business financing solutions, deposit products and digital payment services.

The company operates an integrated payments network that connects card members, merchants and financial institutions. American Express also provides merchant acquisition and payment processing services, data and analytics, fraud prevention tools, and customer loyalty programs.