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American Express Posts Mixed Second-Quarter Results, Sees Revenue Growth at High End of Guidance Range

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American Express Posts Mixed Second-Quarter Results, Sees Revenue Growth at High End of Guidance Range

American Express (AXP) second-quarter earnings topped Wall Street's estimates, but revenue missed expectations, while the payments company now expects full-year revenue to grow at the high end of its previous guidance range.

The firm posted net income of $4.53 per share for the June quarter, up from $4.08 the year before, ahead of the FactSet-polled consensus of $4.40. Revenue, net of interest expense, advanced 10% to $19.64 billion, but trailed the Street's view for $19.7 billion.

The stock fell 6% in Friday trading.

Card member spending gains of 9%, increased net interest income and card fee growth boosted the top line in the second quarter, according to the company.

For 2026, American Express now anticipates revenue to increase by 10%, the high end of its prior growth forecast. The Street is looking for $79.57 billion in sales for the year.

Last week, RBC Capital Markets said it expects American Express' core credit performance to remain resilient, with lower net charge-off and delinquency rates than peers. The brokerage said at the time that the company's growth outlook continues to benefit from consistent activity among its premium customer base.

"Based on our better-than-expected performance in the first half of the year, we are raising our full-year revenue growth guidance," Chief Executive Stephen Squeri said Friday. The firm plans to invest in growth initiatives as it sees "significant" opportunities ahead, Squeri added.

American Express continues to project EPS to come in between $17.30 and $17.90 for 2026. The current average analyst estimate on FactSet is for $17.64.

Revenue in the US consumer services segment climbed 11% to $9.52 billion, while international card services inclined 12% to $3.62 billion. Commercial services rose 7% to $4.5 billion, while global merchant and network services moved 8% higher to $2.1 billion.

Provisions for credit losses totaled $1.08 billion in the quarter, down from $1.41 billion in the 2025 quarter, reflecting a reserve release versus a reserve build last year, partially offset by higher net write-offs, the company said.

Price: $321.64, Change: $-19.21, Percent Change: -5.63%

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