American Express (NYSE:AXP) Issues Quarterly Earnings Results, Beats Expectations By $0.18 EPS

American Express (NYSE:AXP) released its earnings results on Friday. The payment services company reported $4.68 earnings per share for the quarter, topping the consensus estimate of $4.50 by $0.18, FiscalAI reports. The company had revenue of $20.06 billion during the quarter, compared to the consensus estimate of $20.12 billion. American Express had a net margin of 15.07% and a return on equity of 34.12%. The company’s revenue was up 8.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $4.14 EPS. American Express updated its FY 2026 guidance to 17.600-17.900 EPS.

Here are the key takeaways from American Express’ conference call:

• Strong Q3 performance: Revenue reached a record $20.1 billion, up 9%, while adjusted EPS rose 13% to $4.68. Management reaffirmed 10% full-year revenue growth guidance and raised reported EPS guidance to $18.30–$18.60.
• Customer trends remained healthy, with billed business up 8%, U.S. consumer spending up 9.4%, and travel-and-entertainment spending up 10%. Net card fees accelerated to 17% growth, new card acquisitions reached 3.1 million, and credit quality remained strong with stable delinquencies and write-offs growing only 3%.
• Management expects card-member service expense growth to moderate significantly in Q4 as the company laps last year’s Platinum refresh. This could support operating leverage, while the company continues investing in marketing, technology, Airbnb benefits, corporate products, and expense-management capabilities.
• American Express outlined an extensive AI strategy spanning personalized membership benefits, customer acquisition, engagement, agentic payments, and customer service. Management sees AI as a long-term growth opportunity but acknowledged that agentic transaction volumes remain small and that implementation will require disciplined investment and controls.
• The company recorded a $336 million restructuring charge, expected to eliminate approximately 5% of global positions, and recognized $0.51 per share in additional legal reserves, including the unreserved portion of an OCC civil money penalty. Management said the regulatory orders do not impose an asset cap and that remediation costs are not expected to affect 2027 guidance.

American Express Stock Performance

Shares of American Express stock traded down $10.62 during trading hours on Friday, reaching $314.55. The company’s stock had a trading volume of 1,238,120 shares, compared to its average volume of 3,226,325. The company’s 50 day simple moving average is $319.42 and its 200 day simple moving average is $326.03. The company has a debt-to-equity ratio of 1.66, a quick ratio of 1.54 and a current ratio of 1.55. American Express has a one year low of $290.97 and a one year high of $387.49. The stock has a market cap of $212.42 billion, a P/E ratio of 19.09, a price-to-earnings-growth ratio of 1.38 and a beta of 1.08.

American Express Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 9th will be given a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, October 9th. American Express’s dividend payout ratio (DPR) is presently 23.06%.

American Express News Roundup

Here are the key news stories impacting American Express this week:

• Positive Sentiment: Q3 earnings beat expectations: American Express reported earnings of $4.68 per share, above the $4.47–$4.50 analyst consensus and up from $4.14 a year earlier. The result indicates continued earnings momentum. American Express Beats Q3 Earnings Estimates
• Positive Sentiment: Spending remained robust: Billed business reportedly reached $454 billion, up 8% on a foreign-exchange-adjusted basis, as affluent customers continued spending despite elevated interest rates and inflation. This supports card-fee revenue and credit quality. American Express Raises 2026 Profit Forecast
• Positive Sentiment: Full-year outlook was updated: AXP issued FY 2026 EPS guidance of $17.60–$17.90 and revenue guidance of $79.5 billion, broadly in line with analyst expectations. Reports separately cited a higher $18.30–$18.60 EPS range, so investors may focus on the company’s official release for clarification.
• Positive Sentiment: Travel rewards are expanding: More than one million Airbnb listings are being added to the Amex Travel platform, potentially increasing card engagement and premium-member value. American Express Adds Airbnb Bookings and Rewards
• Negative Sentiment: Workforce reduction announced: The CEO said American Express plans to cut approximately 5% of its total workforce. The move could reduce costs, but it also signals restructuring and may raise concerns about growth or execution. AmEx CEO Says Company to Cut 5% of Workforce

Analysts Set New Price Targets

AXP has been the topic of several research analyst reports. UBS Group reduced their price target on shares of American Express from $384.00 to $345.00 and set a “neutral” rating on the stock in a research report on Monday, October 5th. Jefferies Financial Group raised American Express from a “hold” rating to a “buy” rating in a report on Monday, July 13th. Weiss Ratings restated a “hold (c+)” rating on shares of American Express in a research note on Friday, October 9th. President Capital increased their target price on American Express from $359.00 to $400.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Finally, Guggenheim initiated coverage on American Express in a report on Monday, July 13th. They set a “buy” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $365.63.

About American Express

American Express Company is a global financial services company that provides payment, lending, travel and expense management products and services. Its offerings include consumer and small-business charge and credit cards, corporate payment programs, business financing solutions, deposit products and digital payment services.

The company operates an integrated payments network that connects card members, merchants and financial institutions. American Express also provides merchant acquisition and payment processing services, data and analytics, fraud prevention tools, and customer loyalty programs.