AXP · American Express Company

American Express delivered a strong first quarter 2026, with total revenues net of interest expense rising 11% year-over-year to $18.9 billion (10% FX-adjusted). The growth was primarily driven by higher Card Member spending, increased net interest income supported by growth in card balances, and strong card fee growth. Net income increased 15% to $3.0 billion, while diluted EPS grew 18% to $4.28, benefiting from a lower effective tax rate of 21.4% compared to 22.4% in the prior year. Card Member spending accelerated, with billed business growing 10% to $428.0 billion, the highest quarterly growth in three years, reflecting strong demand for premium products. Credit performance remained stable, with the consolidated net write-off rate improving slightly to 2.0% from 2.1% a year ago, though provisions for credit losses increased to $1.3 billion due to higher net write-offs and a lower reserve release. Consolidated expenses rose 11% to $13.9 billion, driven by higher variable customer engagement costs and operating expenses. CEO Stephen J. Squeri highlighted the company's continued momentum across its premium customer base and the execution of its growth strategy, including partnerships with the NFL and NBA, expansion of commercial products, and AI innovation initiatives. Based on the strong start to the year, management reaffirmed its full-year 2026 guidance for 9% to 10% revenue growth and EPS of $17.30 to $17.90, while noting plans to increase investments in marketing and technology to capitalize on long-term growth opportunities.