10-QPeriod: Q2 FY2026

AMERICAN EXPRESS CO Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 24, 2026For Securities:AXP

Summary

American Express Company (AXP) reported a strong second quarter for 2026, demonstrating the resilience of its premium brand and differentiated membership model. Total revenues net of interest expense grew by 10% year-over-year to $19.6 billion, driven by robust billed business growth of 9% across both Goods & Services and Travel & Entertainment categories. Net income increased by 8% to $3.1 billion, translating to diluted earnings per share of $4.53, up 11% from the prior year. The company highlighted healthy growth across its segments, with International Card Services showing particular strength with 13% billed business growth. The U.S. Consumer Services segment also performed well, driven by premium card portfolios, and Commercial Services saw an acceleration in growth from small and mid-sized businesses. Credit quality remains strong, with the net write-off rate stable at 2.0% and a decline in the delinquency rate, reflecting the company's strategy to attract high-credit-quality customers. American Express also returned $2.9 billion to shareholders through dividends and share repurchases while maintaining its Common Equity Tier 1 capital ratio within its target range.

Key Highlights

  • 1Total revenues net of interest expense increased 10% to $19.6 billion for the three months ended June 30, 2026, compared to the prior year period.
  • 2Net income rose 8% to $3.1 billion, with diluted earnings per share growing 11% to $4.53.
  • 3Billed business grew 9% year-over-year, driven by strong consumer and business spending across Goods & Services and Travel & Entertainment.
  • 4International Card Services was the fastest-growing segment, with billed business up 13% (12% FX-adjusted).
  • 5Provisions for credit losses decreased by 23% due to reserve releases, reflecting strong portfolio credit performance.
  • 6Common Equity Tier 1 capital ratio remained strong, within the target range of 10% to 11%.
  • 7The company returned $2.9 billion to shareholders through share repurchases and common stock dividends during the quarter.

Frequently Asked Questions

Revenue growth was primarily driven by a 9% increase in billed business, leading to a 9% rise in Discount revenue. Net card fees also increased significantly by 15%, reflecting strong new card acquisitions and retention. Net interest income grew 11%, supported by an 8% increase in Card balances and Other loans.

Credit quality remains strong. The net write-off rate for principal only was stable at 2.0%, and the 30+ days past due rate for consumer and small business declined to 1.2%. Provisions for credit losses decreased by 23% year-over-year, largely due to reserve releases, indicating improved portfolio credit performance and reinforcing the company's strategy to attract creditworthy customers.

American Express maintains a disciplined capital allocation strategy focused on reinvesting in the business to drive growth while returning excess capital to shareholders. In the second quarter of 2026, the company returned $2.9 billion to shareholders through $2.2 billion in share repurchases and $0.7 billion in common stock dividends. They aim to continue returning excess capital generated through net income.

The company mentioned its proposed acquisition of TheFork, an online restaurant reservation and management platform in Europe, which is expected to enhance its Membership Model. Additionally, American Express announced plans to sell its approximately 30% equity interest in Global Business Travel Group, Inc. upon its acquisition, which is expected to result in a sizable pre-tax gain.