American Express Company

American Express reported Q2 2026 revenue growth of 10% and EPS of $4.53. Pretax income increased 15%, while net income increased 8% due to prior-year tax discretes. On the operating side, billed business rose 9.4% FX-adjusted, U.S. consumer spending rose 11%, and card fees grew 15.4% to record levels; provision expense was $1.1 billion, including a reserve release of $191 million, and ROE was 36%. For the full year, management raised revenue growth guidance to 10% and maintained EPS guidance of $17.30 to $17.90. They also said card fee growth should accelerate in Q3 and exit the year in the high teens, VCE ratio is now expected at 44% to 45%, marketing should be up around 10% in the second half, and operating expenses are still expected to grow in the mid-single digits for the year. The guidance does not include the potential impact from the sale of the equity interest in Global Business Travel Group.

Steve Squeri framed the quarter as evidence that American Express’s premium strategy is working, highlighting the Platinum refresh, strong engagement, and the ability to keep attracting younger high-credit-quality customers. He emphasized that the company is choosing to reinvest upside into long-term growth opportunities across the U.S. and internationally, including TheFork, technology, and card acquisition, rather than simply letting the benefit flow through to EPS or buybacks. His tone was confident and strategic, repeatedly pointing to the company’s durable premium ecosystem and long runway for compounding growth.

Christophe Le Caillec focused on the quality of the quarter’s growth: revenue up 10%, EPS up 11% year over year, billed business up 9.4% FX-adjusted, and net card fees up 15.4%. He said credit remained very strong, with delinquency and write-off rates below 2019 levels, provision expense at $1.1 billion including a $191 million reserve release, and ROE at 36%. On outlook, he said card fees should accelerate in Q3 and exit the year in the high teens, VCE should be 44% to 45% for the full year, marketing should be up around 10% in the second half, and operating expenses should grow in the mid-single digits.

Analysts pressed management on whether strong U.S. consumer spend is being driven more by new account acquisitions or by existing customers spending more, and whether geopolitical or macro weakness is showing up in the data. Management said both are contributing, but the Platinum refresh is the main driver, with existing tenured card members consolidating spend and travel and restaurant engagement particularly strong; they also said they do not see evidence of a broad slowdown. Other questions focused on the decision to reinvest revenue upside, commercial card momentum, attrition, and the benefit of closed-loop data in agentic commerce. Management said attrition remains very low, SME and large/global commercial trends are improving, and American Express believes its closed-loop model gives it an advantage in fraud, data, and trust as agentic commerce develops.