American Express raises 2026 profit forecast as affluent customers keep spending
American Express raised its 2026 profit forecast to $18.30-$18.60 per share, up from $17.30-$17.90, after strong Q3 results. Billed business rose 8% to $454B, revenue increased 9% to $20.1B. CEO Squeri cited strength in billings, new acquisitions, and card member retention. Adjusted profit grew to $4.68 per share from $4.14 a year earlier. The company is investing in younger consumers to sustain growth.
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise reinforce confidence in AmEx's affluent customer base, likely supporting the stock in the near term.
Market read
A large‑cap financial services company delivered better‑than‑expected results and raised guidance, providing a fresh trading catalyst.
What to watch
Higher loan‑loss provisions and a $1 billion reserve reduction could temper the upside if credit quality deteriorates.
Background
American Express reported strong Q3 results, with billings up 8% and revenue up 9%, and lifted its full‑year profit outlook.
Ticker impact
American Express raised its 2026 profit forecast to $18.30‑$18.60 per share and reported Q3 revenue of $20.1 billion.
potential upside as the market prices in higher earnings expectations
The new profit range exceeds prior guidance by about $1 per share, a material improvement for a large‑cap issuer.
Market effects
Consumer discretionary and financial services may see a modest lift as affluent spending data suggests resilience.
U.S. markets could open higher on the back‑stop of AmEx's upbeat outlook.
The guidance may influence global credit‑card peers and investors tracking discretionary consumer trends.
Counterpoint
If the guidance upgrade is already priced in, the stock could face a short‑term pullback on profit‑taking.
Key entities
- companyAmerican Express
U.S. credit‑card issuer (ticker AXP).
