American Express — Q3 2026 Earnings Summary

Financial Performance:

• Total revenues net of interest expense reached $20.1 billion for the quarter, a 9% year-over-year increase.
• Net income was $3.7 billion, up 28% from $2.9 billion in the prior year period.
• Diluted earnings per share (EPS) rose 31% to $5.42, compared to $4.14 in the prior year.
• Adjusted EPS was $4.68, representing a 13% increase from $4.14 in the prior year, excluding the after-tax gain from the sale of GBTG and restructuring costs.
• Pretax income increased 18% to $4.5 billion from $3.8 billion in the prior year.
• Consolidated expenses were $14.5 billion, up 9% year-over-year, driven by higher variable customer engagement costs and the U.S. Platinum Card refresh, partially offset by lower operating expenses.
• Consolidated provisions for credit losses were $1.0 billion, down from $1.3 billion in the prior year, reflecting a reserve release versus a reserve build.
• The net write-off rate was 1.8%, down from 1.9% in the prior year.
• The consolidated effective tax rate was 18.1%, down from 24.1% in the prior year, primarily due to discrete tax benefits from the resolution of prior-period tax items.
• Billed business (FX-adjusted) grew 8% to $454.0 billion from $421.0 billion.
• Nine-month total revenues net of interest expense were $58.6 billion, up 10% year-over-year.
• Nine-month net income was $9.8 billion, up 17% year-over-year.
• Nine-month diluted EPS was $14.22, up 20% year-over-year.

Guidance and Future Outlook:

• Full-year 2026 EPS guidance was raised to a range of $18.30 to $18.60 (GAAP), or $17.60 to $17.90 (Adjusted).
• Management expects to deliver another year of 10% revenue growth for the full year.
• The company remains on track to deliver differentiated value for customers and strong returns for shareholders over the long term.

Business Segments and Product Lines:

• Revenue growth was driven by higher Card Member spending, increased net interest income supported by card balance growth, and strong card fee growth.
• Launched the next generation of Amex Corporate with new integrated Expense Management software and the Amex Expense mobile app.
• Introduced a new American Express Business Savings account to expand banking offerings for businesses.
• Extended its long-term strategic partnership with Marriott International, including U.S. cobrand cards.
• Launched an exclusive partnership with Airbnb, adding over one million global listings to Amex Travel.
• Announced Resy integrations with OpenAI and released the Intent Intelligence framework for trusted agentic commerce.
• Card acceptance reached over 190 million merchant locations worldwide, with acceptance outside the U.S. more than doubling over the past four years.
• Opened the newest Centurion Lounge at Amsterdam Airport Schiphol, bringing the total to 33 locations, with expansions announced in four locations including a 30,000-sq.ft. lounge at Newark Liberty International Airport.
• Ranked #1 issuer in the JD Power 2026 U.S. Credit Card Satisfaction Study for the seventh consecutive year.

Market and Competitive Landscape:

• The company maintains strength in card member retention and new acquisitions.
• Excellent credit quality was noted as a key business momentum driver.
• The company continues to invest in growth initiatives including brand, value propositions, coverage, marketing, technology, partnerships, and talent.

Risks and Challenges:

• Forward-looking statements are subject to risks including macroeconomic and geopolitical conditions, potential slowdowns in U.S. or global economic growth, and changes in consumer confidence.
• Risks include higher unemployment, wide-scale layoffs, impacts from international hostilities, deteriorations in global trade, and effects of tariffs.
• Potential impacts from changes in interest rates, inflation, supply chain issues, energy costs, and market volatility.
• Technology changes and the adoption of artificial intelligence (AI) could impact the business.
• Legal costs, settlements, fines, monetary penalties, and changes in reserves may affect profitability.
• Competitive pressures, including from agentic technologies, and the inability to realize benefits from new sponsorships.
• Regulatory initiatives such as pricing regulation, network regulation, and interest rate caps could limit business opportunities.
• Spending volumes may not be consistent with expectations across consumer and business segments.
• Merchant coverage may grow less than expected, or perceptions of coverage may decline.
• Increased surcharging, steering, or suppression practices with respect to the company's products.
• Changes in foreign currency exchange rates could impact revenue growth.

Management Commentary and Tone:

• Stephen J. Squeri, Chairman and CEO, described the quarter as "strong," citing 9% revenue growth and EPS of $5.42.
• Management expressed confidence in the business momentum, highlighting strength in billings, new acquisitions, and card member retention.
• The CEO stated that ongoing innovations to enhance the Membership Model provide great confidence in delivering long-term value and returns.

Other Key Points:

• The company reported a $982 million pre-tax gain ($751 million after-tax) from the previously announced sale of its equity interest in Global Business Travel Group, Inc. (GBTG).
• A restructuring charge of $336 million pretax ($253 million after-tax) was incurred, partially offsetting the GBTG gain in adjusted metrics.
• The sale of GBTG equity interest was used to fund restructuring related to efficiency initiatives.
• Average diluted common shares outstanding decreased 3% to 674 million in the quarter and 3% to 680 million for the nine-month period compared to the prior year.
• An investor conference call was held on October 23, 2026, at 8:30 a.m. ET to discuss results.