American Express (NYSE:AXP) Issues Earnings Results

American Express Company (NYSE:AXP) released its earnings results on Friday, July 24th. The payment services company reported $4.53 earnings per share for the quarter, beating the consensus estimate of $4.41 by $0.12, FiscalAI reports. The firm had revenue of $19.64 billion for the quarter, compared to the consensus estimate of $19.70 billion. American Express had a return on equity of 34.12% and a net margin of 15.07%.The company’s revenue for the quarter was up 10.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.08 EPS. American Express updated its FY 2026 guidance to 17.300-17.900 EPS.

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

• American Express posted 10% revenue growth and $4.53 EPS in Q2, and management raised full-year revenue growth guidance to 10% while keeping EPS guidance at $17.30-$17.90.
• The company said its Platinum refresh is driving strong momentum, with U.S. consumer spend up 11.4%, the Platinum portfolio now the fastest-growing in the U.S. consumer business, and retention remaining very high.
• Credit quality remained a standout, with delinquency and write-off rates still below 2019 levels and provision expense benefiting from a $191 million reserve release due to further portfolio strength.
• Management plans to reinvest better-than-expected results into customer acquisition, technology, and the planned TheFork acquisition rather than flow all upside to EPS, which supports long-term growth but keeps near-term earnings guidance unchanged.
• Card fee growth is expected to accelerate in Q3 and exit the year in the high teens, while the sale of two small business co-brand portfolios will create a modest year-end headwind to spend and NII that was already built into guidance.

American Express Price Performance

Shares of AXP stock traded up $1.38 during trading hours on Wednesday, hitting $339.90. 2,538,504 shares of the company’s stock were exchanged, compared to its average volume of 3,294,725. The company has a quick ratio of 1.54, a current ratio of 1.55 and a debt-to-equity ratio of 1.66. The firm has a market cap of $229.54 billion, a P/E ratio of 20.62, a P/E/G ratio of 1.38 and a beta of 1.04. The firm has a 50 day moving average of $342.20 and a two-hundred day moving average of $327.04. American Express Company has a fifty-two week low of $290.97 and a fifty-two week high of $387.49.

American Express Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Thursday, July 2nd were issued a $0.95 dividend. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. American Express’s payout ratio is presently 23.06%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AXP. Sfam LLC purchased a new stake in American Express in the 4th quarter valued at $26,000. Measured Wealth Private Client Group LLC purchased a new stake in American Express in the 3rd quarter valued at $28,000. Caitong International Asset Management Co. Ltd purchased a new stake in American Express in the 4th quarter valued at $28,000. Wilkerson Advisory Group LLC purchased a new stake in American Express in the 4th quarter valued at $29,000. Finally, Swiss RE Ltd. purchased a new stake in American Express in the 4th quarter valued at $39,000. 84.33% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting American Express

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

• Positive Sentiment: Expanded corporate payments capabilities: American Express is embedding virtual cards more deeply into its U.S. commercial-payment tools, including the @ Work platform and Conferma for business travel. The strategy could improve security, simplify expense management and increase customer retention, strengthening Amex’s competitive position in premium corporate payments. Is American Express’ Expanded Virtual Cards Strategy Deepening Its Corporate Moat in Premium Payments?
• Positive Sentiment: New St Andrews partnership: American Express became the official payments partner of St Andrews Links, expanding its sports and lifestyle marketing platform. The agreement may support international brand visibility, card-member engagement and premium travel-related spending, though the near-term financial impact is likely limited. American Express and St Andrews Links Trust Announce Partnership
• Positive Sentiment: Premium-card momentum and younger customers: A profile of CEO Steve Squeri highlights Amex’s success attracting millennials and Generation Z to high-fee products such as the Platinum card. Continued acceptance of premium annual fees would support spending growth, fee revenue and the company’s long-term brand positioning. The American Express CEO Defied Haters
• Neutral Sentiment: Upcoming investor presentation: Management will participate in the Barclays Global Financial Services Conference on September 16. Investors may receive updated commentary on spending trends, credit quality and 2026 guidance, but no new information was announced today. American Express to Participate in Barclays Global Financial Services Conference
• Neutral Sentiment: Limited indirect items: American Express is included among the holdings of US Financial 15 Split Corp., while Berkshire Hathaway’s portfolio is becoming more concentrated in Dow components. These developments offer little direct information about AXP’s fundamentals or valuation.

Analyst Ratings Changes

Several brokerages have recently weighed in on AXP. Weiss Ratings reiterated a “hold (c+)” rating on shares of American Express in a report on Monday, July 13th. DZ Bank raised American Express from a “hold” rating to a “buy” rating and set a $375.00 target price on the stock in a research report on Thursday, June 18th. Benchmark began coverage on American Express in a research note on Monday, July 13th. They issued a “buy” rating for the company. Morgan Stanley dropped their price target on American Express from $385.00 to $382.00 and set an “equal weight” rating on the stock in a research note on Monday, July 27th. Finally, Truist Financial boosted their price target on American Express from $360.00 to $375.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, American Express currently has an average rating of “Moderate Buy” and a consensus price target of $373.32.

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.