American Express (NYSE: AXP) delivered a strong Q1 2026 beat, posting diluted EPS of $4.28 (+18% YoY) against analyst estimates of ~$4.02, and revenue of $18.9 billion (+11% YoY) versus the consensus of $18.6 billion. Card member spending hit a three-year high. The stock fell approximately 3.54% on April 23, 2026, despite the beat, as investors digested reaffirmed rather than raised guidance and heightened investment spending.
About American Express
American Express Company (NYSE: AXP) is a globally integrated payments company headquartered in New York City, founded in 1850. It is best known for its premium charge and credit card products, corporate travel management services, and merchant payment processing network. The company serves consumers, small businesses, and large corporations across more than 130 countries.
As of April 2026, American Express carries a market capitalization of approximately $214-216 billion, a trailing P/E ratio of approximately 19.6-21.1x, and a dividend yield of roughly 1.2% (quarterly dividend of $0.95 per share, annualized at $3.80). The company employs approximately 74,000 people globally and generated annual revenues of over $67 billion in 2025.
Top Financial Highlights
- Total revenue reached $18.9 billion net of interest expense, increasing 11% year over year and 10% on an FX-adjusted basis.
- Net income was $2.97 billion, rising 15% from $2.58 billion in Q1 2025.
- Diluted EPS stood at $4.28, up 18% from $3.64 in the prior-year period.
- Billed business, representing card spending, totaled $428.0 billion, growing 10% year over year, marking the strongest quarterly growth in three years.
- Network volumes reached $486.3 billion, reflecting 11% growth year over year.
- Net card fees increased 18%, supported by strong customer acquisition and retention trends.
- Net interest income totaled $4.69 billion, rising 13% year over year, while total interest income reached $6.7 billion, up 9%.
- Total operating expenses were $13.9 billion, increasing 11%, driven by higher customer engagement costs and enhanced service offerings.
- Provision for credit losses was in the range of $1.25 billion to $1.3 billion, up 9%, with a net write-off rate of 2.3%, showing slight improvement.
- Cash and cash equivalents stood at $53.8 billion, increasing 12.5% from the end of 2025.
- Return on average equity was 35.2%, indicating strong profitability.
- Shareholder returns totaled $2.3 billion, including $1.66 billion in share buybacks and $652 million in dividends.
- Full-year 2026 guidance has been reaffirmed, with expected revenue growth of 9% to 10% and EPS projected between $17.30 and $17.90.
Beat or Miss?
| Metric | Reported | Estimated | Difference/Analysis |
| Diluted EPS | $4.28 | $4.01-$4.06 | Beat by ~$0.22-$0.27 (+5.5-6.7%) |
| Total Revenue | $18.91 billion | $18.60-$18.61 billion | Beat by ~$104-$310 million (+1.6%) |
| Network Volumes | $486.3 billion | $480 billion | Beat by ~$6.3 billion (+1.3%) |
| Total Interest Income | $6.7 billion | $6.6 billion | Beat by ~$100 million |
| Provision for Credit Losses | $1.25 billion | $1.34 billion | Beat (came in below estimate) |
| U.S. Consumer Services Revenue | $9.12 billion | $9.07 billion | Beat by ~$50 million |
| International Card Services Revenue | $3.5 billion | $3.4 billion | Beat by ~$100 million |
What Leadership Is Saying?
“We delivered strong results for the first quarter of 2026, reflecting continued momentum across the business and execution of our proven growth strategy. Based on our strong results to date, we are reaffirming our full-year 2026 guidance for 9 to 10% revenue growth and EPS of $17.30 to $17.90, while also choosing to increase our investments in marketing and technology to capture long-term growth opportunities.”
Stephen J. Squeri, Chairman and CEO, American Express“Q1 was a very good quarter. Revenue growth accelerated to 11%, or 10% FX-adjusted, with broad-based growth across revenue lines. Spend growth stepped up to 10%, or 9% FX-adjusted, the highest level we have seen in three years. We are seeing very strong growth across the board, with retail spending up 11% and luxury retail up an impressive 18%.” – Christophe Le Caillec, Chief Financial Officer, American Express
Historical Performance
AXP: Q1 2026 vs. Q1 2025
| Category | Q1 2026 | Q1 2025 | Change (%) |
| Total Revenue (net of interest expense) | $18.91 billion | $16.97 billion | +11.4% |
| Net Income | $2.97 billion | $2.58 billion | +15.1% |
| Diluted EPS | $4.28 | $3.64 | +17.6% |
| Billed Business | $428.0 billion | $387.4 billion | +10.5% |
| Total Operating Expenses | $13.9 billion | $12.5 billion | +11.2% |
| Net Write-Off Rate | 2.30% | 2.10% | +20 bps |
| Return on Average Equity | 35.20% | 33.60% | +160 bps |
Competitor Comparison
Note: Mastercard’s Q1 2026 earnings are scheduled for April 30, 2026 and had not yet been released as of this report. Visa operates on a fiscal year ending in September; its Q1 FY2026 ended December 31, 2025.
Payment Network Peers: Most Recent Comparable Quarters
| Company | Most Recent Quarter | Revenue | Net Income | YoY Revenue Change |
| American Express (AXP) | Q1 2026 (Mar 31) | $18.91 billion | $2.97 billion | +11% |
| Visa (V) | Q1 FY2026 (Dec 31, 2025) | $10.9 billion | $5.9 billion (GAAP) | +15% |
| Mastercard (MA) | Q4 2025 (Dec 31, 2025) | $8.81 billion | ~$3.6 billion (adj.) | +17.5% |
Visa’s Q1 FY2026 (ending December 2025) saw net revenue rise 15% to $10.9 billion and non-GAAP EPS jump 15% to $3.17, beating estimates. Mastercard’s Q4 2025 delivered adjusted EPS of $4.76, beating the $4.24 consensus, with revenue of $8.81 billion up 17.5% YoY. Mastercard will report Q1 CY2026 results on April 30, 2026.
How the Market Reacted?
Despite handily beating both revenue and EPS consensus estimates, AXP stock declined approximately 3.54% on April 23, 2026, closing near $318.55. The sell-off reflected disappointment that management reaffirmed rather than raised its full-year guidance, alongside plans to increase marketing and technology spending, which some investors viewed as a near-term profitability drag.
Broader macroeconomic uncertainty, including softening airline spend late in the quarter tied to Middle East travel disruptions, also weighed on sentiment. Analyst consensus on the stock sits at a “Hold” rating with an average price target of $359.67, implying meaningful upside from current levels.
