AI Takeaway
AXP reported Q2 FY2026 net income of $3.110B and diluted EPS of $4.53, supported by 9% billed-business growth, 10% growth in total revenues net of interest expense, lower credit-loss provisions, and continued investment in premium-card benefits. Source: 10-Q Item 2 MD&A, pp.2-6
Revenue
$11.21B
++8.63% YoY
EPS (Basic)
$4.54
++11.27% YoY
Filed · Source: SEC EDGAR 10-Q filing
American Express (AXP) reported Q2 FY2026 revenue of $11.21B, up 8.6% year over year. The company posted net income of $3.11B, up 7.8% from a year earlier, with diluted EPS of $4.53.
Total revenues net of interest expense rose 10% year over year to $19.637B, led by a 9% increase in Discount revenue to $10.163B and a 15% increase in net card fees to $2.862B. Management attributed fee growth to premium-card portfolios, new-card acquisitions, retention, and product refreshes.
Source: Source: 10-Q Item 2 MD&A, pp.2-4
Billed business increased 9% to $455.8B, as Goods & Services spending grew 9% and Travel & Entertainment spending grew 10%. U.S. Consumer Services billed business grew 11%, Commercial Services grew 5%, and International Card Services grew 13% (12% FX-adjusted).
Source: Source: 10-Q Item 2 MD&A, pp.3, 7
Provisions for credit losses fell 23% to $1.084B, primarily because AXP recorded reserve releases in Q2 FY2026 versus reserve builds in the prior-year period. The principal-only consumer and small-business net write-off rate remained 2.0%, while the 30+ days past-due rate improved to 1.2% from 1.3%.
Source: Source: 10-Q Item 2 MD&A, pp.2, 5, 8
Total expenses increased 12% to $14.482B, including a 50% increase in Card Member services expense to $1.949B, reflecting higher benefit usage and new U.S. Platinum benefits. Marketing increased 6% to $1.650B as AXP continued to invest in acquiring, engaging, and retaining high-spending customers.
Source: Source: 10-Q Item 2 MD&A, pp.3, 6
AXP returned $2.9B to shareholders during the quarter through repurchases and common dividends while maintaining its CET1 ratio within its 10% to 11% target range. The company also announced plans to sell its approximately 30% equity interest in Global Business Travel Group and expects a sizable pre-tax gain in Other expense when the transaction closes.
Source: Source: 10-Q Item 2 MD&A, p.3
The filing identifies business, economic, and geopolitical conditions as risks and uncertainties. For AXP, a deterioration in these conditions could adversely affect Card Member spending, payment performance, and the level of credit-loss reserves required.
Source: Source: 10-Q Item 1A, p.74
AXP is a bank holding company regulated by the Federal Reserve and is subject to evolving and extensive government regulation and supervision globally. Legislative or regulatory changes could materially adversely affect results of operations and financial condition, according to the MD&A.
Source: Source: 10-Q Item 1A, p.74; 10-Q Item 2 MD&A, pp.1, 3
AXP competes with payment networks, issuers, acquirers, bank-transfer methods, and technology-enabled alternatives for premium customers. The filing notes that the payments industry is changing with technology, business-model, and competitive developments, which could raise customer-acquisition and retention costs.
Source: Source: 10-Q Item 1A, p.74; 10-Q Item 2 MD&A, p.1
Management specifically cites certain litigation and regulatory matters among factors that could affect the business. In Q2 FY2026, Other expense increased partly because of higher legal reserves, illustrating potential earnings sensitivity to legal developments.
Source: Source: 10-Q Item 1A, p.74; 10-Q Item 2 MD&A, pp.3, 6
Reported EPS of $4.53 versus the $4.45 analyst consensus — a +1.7% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $11.21B | $10.32B | +8.63% |
Net Income | $3.11B | $2.88B | +7.80% |
EPS (Basic) | $4.54 | $4.08 | +11.27% |
EPS (Diluted) | $4.53 | $4.08 | +11.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $308.2B | $295.56B | +4.28% |
Total Liabilities | $273.92B | $263.25B | +4.06% |
Stockholders' Equity | $34.28B | $32.31B | +6.09% |
Long-Term Debt | $57.02B | $58.2B | -2.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $9.18B | $9.13B | +0.51% |
Investing Cash FlowYTD | $-11.85B | $-6.35B | -86.72% |
Financing Cash FlowYTD | $74M | $14.32B | -99.48% |
Dividends PaidYTD | $1.25B | $1.1B | +13.25% |
Share BuybacksYTD | $4.21B | $2.56B | +64.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 27.7% | — | — |
ROE | 9.1% | — | — |
ROA | 1.0% | — | — |
Debt to Equity | $7.991 | — | — |
Expected release date, analyst estimates & what to watch
American Express delivered a strong Q1 2026 with revenue of $10.5B (+9.3% YoY) and net income of $3.0B (+15.0% YoY), driven by robust card member spending and premium customer growth, though operating cash flow declined 20.2% YoY.
American Express delivered strong FY2025 results with revenue rising 6.4% to $41.3B and net income growing 7.0% to $10.8B, driven by robust operating cash flow of $18.4B and a 9.8% jump in diluted EPS to $15.38.
Other companies in Consumer Finance
The provided XBRL data shows revenue of $11.212B, up 8.6% year over year. In the filing’s primary presentation, total revenues net of interest expense rose 10% to $19.637B, driven by 9% Discount revenue growth and 15% net card-fee growth. Source: 10-Q Income Statement (XBRL); 10-Q Item 2 MD&A, pp.2-4
AXP earned $3.110B, or $4.53 per diluted share, compared with $2.885B and $4.08 a year earlier. Billed business grew 9% to $455.8B, while provisions for credit losses declined 23% to $1.084B due primarily to reserve releases. Source: 10-Q Item 2 MD&A, pp.2-5
Provisions for credit losses decreased by $321M, or 23%, to $1.084B because AXP recorded reserve releases in the current period versus reserve builds a year earlier. Management cited lower delinquencies, with the consumer and small-business 30+ days past-due rate declining to 1.2% from 1.3%, although net write-offs increased. Source: 10-Q Item 2 MD&A, pp.5, 8
AXP reported $308.203B of total assets, $34.280B of stockholders’ equity, and $57.017B of long-term debt; long-term debt declined 2.0% year over year. The filing also reported a 10.4% CET1 ratio, within management’s stated 10% to 11% target range, alongside $2.9B of quarterly shareholder capital returns. Source: 10-Q Balance Sheet (XBRL); 10-Q Item 2 MD&A, pp.2-3
The filing refers investors to its 2025 Form 10-K for risks related to business, economic, and geopolitical conditions, while also noting regulatory, competitive, litigation, and regulatory-matter exposures. AXP is subject to extensive global regulation as a bank holding company, and management said legislative or regulatory changes could materially adversely affect results and financial condition. Source: 10-Q Item 1A, p.74; 10-Q Item 2 MD&A, pp.1, 3