American Express Q2 revenue rises on higher spending; lifts 2026 outlook

Overview

• Payments company reported Q2 revenue up 10% yr/yr, driven by higher card member spending

• Q2 EPS rose 11% yr/yr to $4.53

• Company raised full-year 2026 revenue growth guidance to 10%

Outlook

• American Express raises FY 2026 revenue growth guidance to 10%

• Company maintains FY 2026 EPS guidance at $17.30 to $17.90

• Company plans to reinvest outperformance in growth initiatives

Result Drivers

• CARD MEMBER SPENDING - Higher Card Member spending was the main driver of revenue growth in Q2, per company

• CREDIT PERFORMANCE - Lower provisions for credit losses, due to a reserve release, contributed to results

• CUSTOMER ACQUISITION - Company continued to attract new customers, particularly Millennials and Gen-Zs, supporting growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for American Express Co is $372.50, about 9.3% above its July 23 closing price of $340.84

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 22 - WEX Q2 revenue rises, lifts 2026 outlook

• July 21 - Capital One second-quarter profit rises on higher interest income

• July 23 - Switzerland's Cembra H1 net income rises on lower costs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)