American Express (NYSE: AXP) Q2 2026: EPS of $4.53 Beats Estimates, Revenue Guidance Raised to 10%

Q2 2026 Results

American Express (NYSE: AXP) posted Q2 2026 EPS of $4.53, topping the $4.45 consensus estimate by $0.08, while revenue net of interest expense rose 10.0% year-over-year to $19.6 billion. The company also raised its full-year 2026 revenue growth guidance to 10%, though it maintained its EPS outlook of $17.30 to $17.90. Shares fell -4.30% on Friday, July 24, 2026, while the S&P 500 edged up 0.10%.

Key Metrics

• EPS: $4.53 vs. $4.08 a year ago, up 11.0% year-over-year; beat the $4.45 consensus estimate
• Revenue: $19.637 billion, up 10.0% year-over-year from $17.856 billion
• Pre-tax income: $4.071 billion, up 15% year-over-year from $3.550 billion; pre-tax margin expanded to 20.7% from 19.9%
• Net income: $3.110 billion, up 7.8% year-over-year from $2.885 billion
• Card Member billed business: $455.8 billion, up 9% year-over-year on an FX-adjusted basis, described by CEO Stephen Squeri as the highest spending growth rate in three years
• Consolidated expenses: $14.5 billion, up 12% year-over-year, driven by higher variable customer engagement costs related to the U.S. Platinum Card refresh and increased Card Member benefit usage

What Drove the Results

EPS of $4.53 beat the $4.45 consensus by 1.8%, and revenue of $19.637 billion grew 10.0% year-over-year. The top-line increase was driven by higher Card Member spending, growth in net interest income supported by rising card balances, and continued card fee expansion. Consolidated provisions for credit losses declined to $1.1 billion from $1.4 billion in the prior year, reflecting a reserve release in the quarter versus a reserve build a year ago, though higher net write-offs partially offset that benefit. The net write-off rate held flat year-over-year at 2.0%.

Despite the beat on both lines, consolidated expenses grew faster than revenue at 12% year-over-year, and the effective tax rate rose to 23.6% from 18.7% in the prior year, as the year-ago period benefited from discrete tax items that did not repeat. These factors constrained net income growth to 7.8%, below the 11.0% EPS growth rate, with the difference partly explained by a 3% reduction in average diluted shares outstanding.

On the strategic front, American Express announced a proposed acquisition of TheFork, a European restaurant booking platform operating across 50,000 restaurants in 11 countries. The company also enabled Membership Rewards points redemption through Apple Pay, introduced new travel benefits for Delta SkyMiles cardholders, formed a global partnership with ALL Accor covering 45 hotel brands including Raffles and Fairmont, and became the Official Payments Partner of Fanatics. American Express ranked first in the J.D. Power 2026 U.S. Credit Card Mobile App and Online Satisfaction Studies.

Wall Street View

The guidance picture drew mixed reactions. While full-year revenue growth guidance was raised to 10%, management indicated it plans to reinvest the first-half outperformance in growth initiatives rather than convert it to higher EPS, leaving the full-year EPS range of $17.30 to $17.90 unchanged. That decision appears to have weighed on investor sentiment despite the clean earnings beat.

Investor Takeaway

American Express delivered a first-half that exceeded its own expectations, with Card Member spending growth at a three-year high on an FX-adjusted basis and pre-tax margin expanding by 0.8 percentage points to 20.7%. The decision to reinvest outperformance rather than raise EPS guidance reflects a deliberate prioritization of long-term growth, particularly in Millennial and Gen-Z cardholder acquisition, but investors appear to be pricing in the near-term earnings ceiling that choice implies. The proposed TheFork acquisition and the expanding partner ecosystem suggest the company is broadening its value proposition beyond payments, a strategic direction that may take several quarters to reflect in headline financial metrics.