American Express Sales, Profit Rise on Higher Card Member Spending -- Update

By Katherine Hamilton

American Express posted higher sales and profit in the second quarter, thanks to higher spending among its credit-card members.

The credit-card company's sales rose 10% to $19.64 billion, but came in below Wall Street estimates of $19.7 billion. Shares fell 6% Friday morning, as investors were disappointed by the slight miss.

Card members spent 9% more in the second quarter, the highest growth rate in three years, Amex said. Spending on restaurants, the company's biggest category, rose 10% and travel bookings jumped 22%.

Card fee revenue also rose, as did net interest income, due to growth in card balances.

Amex has made efforts in recent years to bring in consumers with higher incomes and better credit scores. It refreshed its Platinum card last year, which has one of the highest annual fees of any Amex card.

The Platinum portfolio is now the fastest growing in Amex's U.S. consumer business. The Platinum card is designed for customers who are willing to pay a higher fee to access premium travel perks like airport lounges and luxury hotel benefits.

"Our focus on premium products continues to drive improvements in credit performance," Chief Financial Officer Christophe Le Caillec said. "The strengthening we have seen in our credit performance is deliberate."

Amex's quarterly profit was $3.11 billion, or $4.53 a share, compared with $2.89 billion, or $4.08 a share, a year earlier. Analysts polled by FactSet expected $4.40 a share.

The company expects full-year sales will increase 10%, compared with its previous guidance of 9% to 10% growth. It maintained its outlook for earnings per share of $17.30 to $17.90.

Some investors may have been hoping for a bigger raise to guidance, since the outlook suggests revenue growth will remain around 10% for the rest of the year, Truist analyst Brian Foran said in a note. Friday's stock decline shows Wall Street was hoping for growth to increase even more, he said.

"The knee jerk is likely disappointment, given the lack of acceleration in both billed business and revenue growth," Foran said.

Amex said it plans to invest further in its growth initiatives, including its ecosystem of membership credit cards that come with annual fees and a range of perks. During the second quarter, Amex proposed an acquisition of the European restaurant booking platform TheFork in an effort to expand its dining perks.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

July 24, 2026 10:56 ET (14:56 GMT)