Updated version 1 - As high-net-worth clients continue to spend, American Express has raised its profit forecast for 2026.

A chart on billings performance and share price was added in paragraph 5

Reuters, Oct 23 - American Express AXP.N on Friday raised its profit forecast for 2026 after posting strong third-quarter results, driven by high-net-worth customers using credit cards to pay for travel, dining, and shopping expenses.

By targeting consumers with higher credit scores and greater disposable income, this credit card giant has built a moat around its business, insulating itself from broader economic slowdown and uncertainty.

Billings—the total spending on all American Express-issued credit cards—rose 8% in the third quarter to $454 billion. Revenue increased 9% to $20.1 billion.

"Business momentum remains strong, with solid billings, new customer acquisition, and cardholder retention rates, as well as excellent credit quality," American Express CEO Stephen Squeri said in a statement.

After the company forecast full-yearearnings per share to be between $18.30 and $18.60 (previous guidance: $17.30 to $17.90),its share price was last up 0.8% in premarket trading.

https://www.reuters.com/graphics/BRV-BRV/zdvxegmqypx/chart.png

The company has invested heavily in attracting younger consumers, especially Generation Z and Millennials, aiming to build long-term customer relationships and expand its global market share to sustain growth.

In the quarter ending September 30, American Express’s adjusted earnings per share rose to $4.68, compared to $4.14 in the prior year period.

Although the company’s focus on high-end clients means its results do not fully represent the state of all consumers, the data offers an early reference for observing the spending patterns of affluent groups, providing investors with insight into discretionary spending trends.

More broadly, executives at major U.S. banks also underscored the resilience of consumers across all income levels when reporting results earlier this month, noting that spending remains strong and credit metrics stable.

American Express set aside $1 billion in credit loss provisions in its consolidated statements for the quarter, down from $1.3 billion a year earlier.

Loan loss provisions, often called “rainy day funds,” reflect the amounts set aside by lenders to cover expected loan losses, thus revealing their expectations for borrowers’ debt repayment capacity.

https://www.reuters.com/graphics/BRV-BRV/akvelybgnpr/chart.png

(To make this article accessible to non-native English speakers, Reuters has automated translation into several other languages. Automated translation may contain errors or lack necessary context; Reuters does not guarantee the accuracy of automated translation and provides it solely for readers’ convenience. Reuters accepts no liability for any harm or losses arising from use of the automated translation feature.)