American Express shares fell 1.4% in premarket trading on Friday, even after the company reported second-quarter results that beat expectations and lifted its revenue growth guidance for 2026.
The financial services company posted revenue of $19.6 billion for Q2, marking a 10% increase compared to the same period last year. Cardholder spending climbed by 9% to $455.8 billion, adjusted for currency effects, underscoring accelerating consumer activity on AmEx cards.
Earnings per share reached $4.53, surpassing the analyst estimate of $4.40 and growing from $4.08 a year earlier. Despite these gains, the company’s shares declined, likely due to management holding the earnings growth forecast steady, even as revenue projections were raised.
Credit Losses Decline as Spending Picks Up
One positive from the report was the reduction in provisions for credit losses, which fell to $1.1 billion from $1.4 billion in the previous year. This suggests increased confidence in cardholders’ ability to manage payments amid ongoing economic pressures.
CEO Stephen Squeri highlighted the business momentum, noting that investments in value propositions have driven stronger spend and revenue growth than anticipated halfway through the year.
American Express’s customer base remains skewed toward affluent individuals, a group that has shown better resilience in spending patterns compared to the overall market. This demographic focus may contribute to the company’s improving credit metrics.
While AmEx’s earnings beat helped maintain investor interest, the unchanged earnings growth outlook tempered enthusiasm, weighing on share price despite solid operational results.
