AmEx lifts 2026 profit forecast on strong Q3

American Express (AXP) raised its 2026 earnings guidance on Friday after reporting a solid third quarter that highlighted continued spending by affluent customers. The company now expects 2026 earnings per share of $18.30 to $18.60, with an adjusted earnings-per-share range of $17.60 to $17.90. Its shares were up 0.8% in premarket trading following the announcement of the new outlook.

The higher forecast reflects management’s confidence that card member spending and revenue growth can be sustained. The company also said it remains on track to deliver 10% revenue growth for the full year, supported by strong billings, new customer acquisitions and high card member retention.

In the quarter ended Sept. 30, third-quarter revenue rose 9% to $20.1 billion, helped by higher card spending, net interest income growth tied to larger balances and increased card fees. Billed business, a measure of total spending on American Express cards, climbed 8% to $454.0 billion as customers continued to spend on travel, dining and shopping.

Third-quarter net income was $3.7 billion, up from $2.9 billion a year earlier. Earnings per share increased 31% to $5.42, while adjusted earnings per share rose 13% to $4.68. The adjusted figure excludes a $982 million pretax gain, or $751 million after tax, from the sale of the company’s equity interest in Global Business Travel Group, net of the portion used to fund restructuring.

Analysts had expected adjusted earnings of $4.48 per share and revenue of $20.12 billion. CEO Stephen Squeri said the company had “another strong quarter,” citing 9% revenue growth and earnings of $5.42 per share, or $4.68 on an adjusted basis, and pointed to strength in billings, customer additions, retention and credit quality.

American Express reported consolidated provisions for credit losses of $1.0 billion in the third quarter, down from $1.3 billion in the same period a year earlier. The decline reflected a reserve release in the latest quarter compared with a reserve build in the prior year. The net write-off rate improved to 1.8% from 1.9%.

The company’s focus on customers with high credit scores and greater disposable income has helped support credit performance. Management highlighted excellent credit quality as part of the business momentum underpinning the raised profit outlook.

Spending by affluent card members remained a key driver of American Express’s performance, particularly in travel, dining and retail categories. Results provided an early view of discretionary spending patterns among higher-income consumers.

The company has also invested heavily in attracting younger customers, especially Gen Z and millennials, to build long-term relationships and expand its global market share. Strong card member retention and the addition of new customers contributed to the growth in billings and revenue in the latest quarter.