Q3 FY2026
Filed Oct 23, 2026AMERICAN EXPRESS RAISES FY 2026 EARNINGS PER SHARE GUIDANCE; COMPANY DELIVERED RECORD Q3 REVENUE OF $20.1 BILLION, UP 9% YOY
Record third-quarter revenue of $20.1 billion grew 9%, GAAP diluted EPS rose 31% to $5.42, adjusted diluted EPS rose 13% to $4.68, and the company raised FY 2026 GAAP and adjusted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Billed Businessother | $454.0 | – | 8% |
| Q3 2026 Billed Business, FX-adjustednon-GAAP | $454.0 | – | 8% |
| Q3 2026 Total Revenues Net of Interest ExpenseGAAP | $20.06B | – | 9% |
| Q3 2026 Total Revenues Net of Interest Expense, FX-adjustednon-GAAP | $20.06B | – | 9% |
| Q3 2026 Pretax IncomeGAAP | $4.53T | – | 18% |
| Q3 2026 Net IncomeGAAP | $3.71T | – | 28% |
| Q3 2026 Adjusted Net Incomenon-GAAP | $3,214 | – | 11% |
| Q3 2026 Diluted Earnings Per Common Share (EPS)GAAP | $5.42 | – | 31% |
| Q3 2026 Adjusted Diluted EPSnon-GAAP | $4.68 | – | 13% |
| Q3 2026 Average Diluted Common Shares OutstandingGAAP | 674 | – | (3)% |
| Q3 2026 Consolidated Provisions for Credit LossesGAAP | $1B | – | – |
| Q3 2026 Net Write-Off Rateother | 1.8 percent | – | – |
| Q3 2026 Consolidated ExpensesGAAP | $14.5B | – | 9 percent |
| Q3 2026 Consolidated Effective Tax RateGAAP | 18.1 percent | – | – |
| Q3 2026 GBTG Gain on Sale (pretax), EPS impactnon-GAAP | $(1.45) | – | – |
| Q3 2026 Tax Impact of GBTG Gain on Sale, EPS impactnon-GAAP | $0.34 | – | – |
| Q3 2026 GBTG Gain on Sale (after tax), EPS impactnon-GAAP | $(1.11) | – | – |
| Q3 2026 Restructuring Charge (pretax), EPS impactnon-GAAP | $0.49 | – | – |
| Q3 2026 Tax Impact of Restructuring Charge, EPS impactnon-GAAP | $(0.12) | – | – |
| Q3 2026 Restructuring Charge (after tax), EPS impactnon-GAAP | $0.37 | – | – |
| Q3 2026 GBTG Gain on Sale (pretax), net income reconciliationnon-GAAP | −$982M | – | – |
| Q3 2026 Tax Impact of GBTG Gain on Sale, net income reconciliationnon-GAAP | $230 | – | – |
| Q3 2026 GBTG Gain on Sale (after tax), net income reconciliationnon-GAAP | −$751M | – | – |
| Q3 2026 Restructuring Charge (pretax), net income reconciliationnon-GAAP | $336 | – | – |
| Q3 2026 Tax Impact of Restructuring Charge, net income reconciliationnon-GAAP | $(84) | – | – |
| Q3 2026 Restructuring Charge (after tax), net income reconciliationnon-GAAP | $253 | – | – |
| Nine Months Ended September 30, 2026 Billed Businessother | $1,337.7 | – | 9% |
| Nine Months Ended September 30, 2026 Billed Business, FX-adjustednon-GAAP | $1,337.7 | – | 9% |
| Nine Months Ended September 30, 2026 Total Revenues Net of Interest ExpenseGAAP | $58,606 | – | 10% |
| Nine Months Ended September 30, 2026 Total Revenues Net of Interest Expense, FX-adjustednon-GAAP | $58,606 | – | 10% |
| Nine Months Ended September 30, 2026 Pretax IncomeGAAP | $12,380 | – | 16% |
| Nine Months Ended September 30, 2026 Net IncomeGAAP | $9,794 | – | 17% |
| Nine Months Ended September 30, 2026 Adjusted Net Incomenon-GAAP | $9,296 | – | 11% |
| Nine Months Ended September 30, 2026 Diluted Earnings Per Common Share (EPS)GAAP | $14.22 | – | 20% |
| Nine Months Ended September 30, 2026 Adjusted Diluted EPSnon-GAAP | $13.49 | – | 14% |
| Nine Months Ended September 30, 2026 Average Diluted Common Shares OutstandingGAAP | 680 | – | (3)% |
| Nine Months Ended September 30, 2026 GBTG Gain on Sale (pretax), EPS impactnon-GAAP | $(1.44) | – | – |
| Nine Months Ended September 30, 2026 Tax Impact of GBTG Gain on Sale, EPS impactnon-GAAP | $0.34 | – | – |
| Nine Months Ended September 30, 2026 GBTG Gain on Sale (after tax), EPS impactnon-GAAP | $(1.10) | – | – |
| Nine Months Ended September 30, 2026 Restructuring Charge (pretax), EPS impactnon-GAAP | $0.49 | – | – |
| Nine Months Ended September 30, 2026 Tax Impact of Restructuring Charge, EPS impactnon-GAAP | $(0.12) | – | – |
| Nine Months Ended September 30, 2026 Restructuring Charge (after tax), EPS impactnon-GAAP | $0.37 | – | – |
| Nine Months Ended September 30, 2026 GBTG Gain on Sale (pretax), net income reconciliationnon-GAAP | −$982M | – | – |
| Nine Months Ended September 30, 2026 Tax Impact of GBTG Gain on Sale, net income reconciliationnon-GAAP | $230 | – | – |
| Nine Months Ended September 30, 2026 GBTG Gain on Sale (after tax), net income reconciliationnon-GAAP | −$751M | – | – |
| Nine Months Ended September 30, 2026 Restructuring Charge (pretax), net income reconciliationnon-GAAP | $336 | – | – |
| Nine Months Ended September 30, 2026 Tax Impact of Restructuring Charge, net income reconciliationnon-GAAP | $(84) | – | – |
| Nine Months Ended September 30, 2026 Restructuring Charge (after tax), net income reconciliationnon-GAAP | $253 | – | – |
| FY'25 GAAP Diluted EPSGAAP | $15.38 | – | – |
| FY'25 Adjusted Diluted EPSnon-GAAP | $15.38 | – | – |
FY 2026 outlook
- Revenue10 percent revenue growth
- NoteGAAP Diluted EPS: $18.30 to $18.60
- NoteAdjusted Diluted EPS: $17.60 to $17.90
- NoteGAAP Diluted EPS YoY% Inc/(Dec): 19% to 21%
- NoteAdjusted Diluted EPS YoY% Inc/(Dec): 14% to 16%
- NoteGBTG Gain on Sale (after tax): $(1.10)
- NoteRestructuring Charge (after tax): $0.37
What drove it
- Higher Card Member spending
- Increased net interest income supported by growth in card balances
- Strong card fee growth
- Strength in billings, new acquisitions and Card Member retention
- Reserve release during the quarter compared to a reserve build in the prior year
- Higher variable customer engagement costs due to increased Card Member spending and the U.S. Platinum Card refresh
- Discrete tax benefits related to the resolution of certain prior-period tax items
Concerns
- Higher net write-offs partially offset the benefit from the reserve release.
- Expenses increased due to higher variable customer engagement costs and the U.S. Platinum Card refresh.
- Operating expenses included an increase in legal reserves for previously-disclosed matters and restructuring costs.
- The company identified macroeconomic and geopolitical conditions, spending volumes, credit performance, expense levels, interest rates, regulation and foreign currency exchange rates among factors that could affect results.
What to watch
- Whether the company delivers its stated 10 percent FY 2026 revenue growth.
- Credit performance, including credit reserve levels and net write-offs.
- Card Member spending, card balances, new acquisitions and Card Member retention.
- The effect of the U.S. Platinum Card refresh and customer engagement costs on expenses.
- Execution of efficiency initiatives and the impact of legal reserves and restructuring costs.
Analysis
American Express reported record third-quarter total revenues net of interest expense of $20,062, up 9% from $18,426. Billed Business was $454.0, up 8% from $421.0, while FX-adjusted billed business was compared with $420.8. Management attributed revenue growth to higher Card Member spending, increased net interest income supported by card-balance growth, and strong card fee growth. The nine-month revenue result was $58,606, up 10% from $53,249.
GAAP profitability accelerated, with Q3 net income of $3,712, up 28% from $2,902, and GAAP diluted EPS of $5.42, up 31% from $4.14. The reported result included the previously announced GBTG equity-interest sale gain, net of restructuring related to efficiency initiatives. Excluding those items, adjusted net income was $3,214, up 11%, and adjusted diluted EPS was $4.68, up 13%. Nine-month GAAP diluted EPS was $14.22, up 20%, while adjusted diluted EPS was $13.49, up 14%.
Credit quality remained favorable in the reported quarter. Consolidated provisions for credit losses were $1.0 billion versus $1.3 billion a year ago, reflecting a reserve release compared with a prior-year reserve build, partly offset by higher net write-offs. The net write-off rate was 1.8 percent, down from 1.9 percent. The consolidated effective tax rate was 18.1 percent versus 24.1 percent, with the decrease primarily reflecting discrete tax benefits related to certain prior-period tax items.
Expenses remained an area of investment and execution focus. Consolidated expenses were $14.5 billion, up 9 percent, driven by higher variable customer engagement costs associated with spending growth and the U.S. Platinum Card refresh. The company stated that operating expenses declined primarily because of the GBTG sale gain, partly offset by higher legal reserves and restructuring costs. The release did not provide segment financial results, cash flow, balance-sheet figures, or capital-return amounts.
Management raised FY 2026 GAAP diluted EPS guidance to $18.30 to $18.60 and adjusted diluted EPS guidance to $17.60 to $17.90. It also said it is on track for 10 percent revenue growth for the year. The guide places emphasis on sustaining spending and fee momentum, net interest income, credit performance, expense control, and the stated share repurchase program, while the filing identifies macroeconomic, regulatory, competitive and foreign exchange risks as potential constraints.
Management, verbatim
We had another strong quarter, delivering 9 percent revenue growth and EPS of $5.42, or $4.68 adjusted, up 13 percent year-over-year.
Stephen J. Squeri, Chairman and Chief Executive Officer
Given our performance year-to-date, we are raising our full-year EPS guidance to between $18.30 and $18.60 ($17.60-$17.90 adjusted), and we're on track to deliver another year of 10 percent revenue growth.
Stephen J. Squeri, Chairman and Chief Executive Officer
The progress we’re making across the business and ongoing innovations to enhance our Membership Model give me great confidence in our ability to deliver differentiated value for our customers and strong returns for our shareholders over the long term.
Stephen J. Squeri, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Reportable operating segment revenue, profitability and segment comparisons, which the release says are in supplemental statistical tables but are not included in the provided filing text.
- Gross profit and gross margin.
- Operating income and operating margin.
- Prior-quarter values and sequential comparisons for reported metrics.
- Operating cash flow.
- Free cash flow.
- Cash and cash equivalents.
- Debt and funding balances.
- Share repurchase amounts.
- Dividend amounts.
- Specific FY 2026 guidance for gross margin, operating expenses and tax rate.
- Prior-release outlook needed to compare reported results against prior guidance.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.