American Express raises annual profit outlook as affluent customers keep spending
American Express (AXP) raised its 2026 profit forecast after Q3 results showed an 8% rise in billed business to $454B and 9% revenue growth to $20.1B. CEO Stephen Squeri cited strong billing, acquisitions, and credit quality. Shares rose 0.8% premarket with an updated EPS range of $18.30-$18.60. Adjusted profit per share increased to $4.68 from $4.14 YoY. The company reduced credit loss provisions to $1B from $1.3B.
How this was made
The 30-second read
Why it matters
The guidance raise signals resilient spending among affluent consumers, supporting a bullish view on AmEx.
Market read
First report of AmEx's upgraded profit outlook; likely to move the stock and influence consumer‑spending sentiment.
What to watch
Potential competitive pressure from fintech rivals and any future regulatory changes to credit card fees.
Background
American Express reported Q3 billings of $454 bn (+8%) and revenue of $20.1 bn (+9%). Adjusted EPS rose to $4.68 from $4.14 a year earlier.
Ticker impact
American Express raised its 2026 profit outlook to $18.30‑$18.60 per share, up from $17.30‑$17.90, after reporting Q3 results.
likely upward pressure as investors price in higher earnings expectations
The new profit range exceeds prior guidance and follows solid revenue and billings growth, prompting buying interest.
Market effects
Strengthens outlook for consumer discretionary and financial services sectors focused on premium credit cards.
U.S. market may see modest gains in financial stocks.
Limited to markets tracking U.S. consumer spending trends.
Counterpoint
If credit loss provisions rise or macro slowdown intensifies, the guidance lift could be premature.
Key entities
- personStephen Squeri
CEO of American Express, provided the earnings commentary.
