American Express reports in-line Q4 results, 2026 outlook beats

Investing.com -- American Express (NYSE: AXP) reported in-line results for the fourth quarter, while its profit outlook for the year exceeded consensus estimates at the midpoint.

Shares in the payments company slipped about 1% in premarket trading by 07:16 ET.

American posted earnings per share (EPS) of $3.53, roughly in line with the consensus expectations of $3.54. Revenue for the period rose 9% on an FX-adjusted basis to $18.98 billion, just above the $18.92 billion expected by analysts.

The revenue increase was driven by higher Card Member spending, stronger net interest income supported by growth in revolving loan balances, and solid card fee growth, the company said.

"2025 was a very strong year for American Express," said Stephen Squeri, Chairman and CEO of American Express. "Looking ahead, we plan to continue to execute our proven investment philosophy in order to deliver sustained revenue and EPS growth and strong shareholder returns over the long term."

For 2026, American Express expects earnings per share of $17.30 to $17.90, the midpoint of which is above the consensus estimates of $17.40, and revenue growth of 9% to 10%.

The company said it plans to raise its regular quarterly dividend by about 16% to $0.95 per share from $0.82, starting with the first-quarter 2026 payout.

Credit loss provisions for the fourth quarter totaled $1.4 billion, up from $1.3 billion a year earlier, reflecting higher net write-offs, with the net write-off rate rising to 2.1% from 1.9%.

Expenses increased 10% year over year to $14.5 billion, mainly due to higher customer engagement costs linked to increased spending and the U.S. Platinum Card refresh. The effective tax rate eased to 20.3% from 21.3%, driven by changes in the geographic mix of income.

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