What were the key drivers of American Express's revenue growth in Q1 2026?

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.

How is American Express managing credit risk in the current economic environment?

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.

What is American Express's capital allocation strategy?

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.

What was the performance of the different business segments?

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.

AXP 10-Q Quarterly Report Q1 FY2026 — Revenue, Net Income, EPS

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.

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).

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

Summary

Key Highlights

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