10-QPeriod: Q1 FY2026

AMERICAN EXPRESS CO Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 23, 2026For Securities:AXP

Summary

American Express Company (AXP) reported robust financial results for the first quarter of 2026, demonstrating continued momentum across its global operations. The company saw significant year-over-year growth in total revenues net of interest expense, which increased by 11% (10% FX-adjusted) to $18.9 billion. This growth was primarily driven by a 10% increase in billed business, reaching $428.0 billion, supported by strong spending in both Goods & Services and Travel & Entertainment categories, although a slight softening in airline spend was noted towards the end of the quarter. Net income rose by 15% to $3.0 billion, or $4.28 per diluted share, up from $2.6 billion, or $3.64 per share, in the prior year's quarter. This strong profitability was achieved while managing operating expenses effectively, with a focus on investments in technology and talent to support future growth. The company also continued to return capital to shareholders, declaring $0.95 per share in dividends and executing significant share repurchases. American Express maintained a strong capital position, with its Common Equity Tier 1 ratio at 10.5%, within its target range.

Financial Highlights

39 data points
Beta

Revenue

$10.52B

Net Income

$2.97B

28.2% Net Margin

EPS (Diluted)

$4.28

Total Assets

$308.89B

Cash & Equivalents

$53.76B

Free Cash Flow

$2.65B

Financial Statements
Beta
Revenue$10.52B
Net Income$2.97B
EPS (Basic)$4.29
EPS (Diluted)$4.28
Shares Outstanding (Basic)685.00M
Shares Outstanding (Diluted)686.00M

Key Highlights

  • 1Total revenues net of interest expense increased 11% to $18.9 billion, driven by strong billed business growth.
  • 2Net income grew 15% to $3.0 billion, resulting in diluted earnings per share of $4.28.
  • 3Billed business increased by 10% to $428.0 billion, reflecting robust consumer and corporate spending.
  • 4International Card Services segment showed particularly strong growth, with billed business up 20% (13% FX-adjusted).
  • 5Net card fees saw a significant increase of 18%, indicating healthy acquisition and retention of premium card members.
  • 6Provisions for credit losses increased by 9% due to higher net write-offs and a lower reserve release, though net write-off and delinquency rates remained stable and best-in-class.
  • 7The company returned $2.3 billion to shareholders through share repurchases ($1.6 billion) and dividends ($0.65 billion).

Frequently Asked Questions

Revenue growth was primarily driven by a 10% increase in billed business, which led to a 9% rise in discount revenue. Additionally, net card fees grew by 18% due to high new card acquisitions and strong retention, and net interest income increased by 13% driven by balance growth and yield expansion.

American Express continues to maintain stable and best-in-class net write-off and delinquency rates, supported by its premium customer base. While provisions for credit losses increased due to higher net write-offs and a lower reserve release, the company emphasized that its reserves reflect ongoing macroeconomic uncertainty. The overall credit quality of its portfolios remains strong.

American Express aims to maintain a strong balance sheet while returning excess capital to shareholders. In Q1 2026, the company returned $2.3 billion through share repurchases and dividends. It also aims to maintain its Common Equity Tier 1 capital ratio within its target range of 10-11%, providing flexibility for future growth and shareholder returns.

The U.S. Consumer Services segment saw total revenues net of interest expense increase by 11%. Commercial Services experienced a 7% increase in total revenues net of interest expense, though pretax segment income saw a slight decrease. International Card Services was a strong performer with a 20% increase in total revenues net of interest expense (13% FX-adjusted), and Global Merchant and Network Services reported a 10% increase in total revenues net of interest expense.