American Express Posts Record Revenue and Raises Annual Profit Outlook
American Express raised its full-year profit outlook after posting a record third-quarter revenue, driven by higher card spending and interest income. The payment provider increased its revenues after interest expense by nine percent compared to the same period last year. Net income rose 28 percent to $3.7 billion. Diluted earnings per share climbed 31 percent to $5.42. Excluding a business divestiture and related restructuring costs, adjusted earnings per share reached $4.68, marking a 13 percent increase. Chief Executive Officer Stephen Squeri said the business performance keeps the company on track for another year of double-digit revenue growth.
Card Spending Reaches $454 Billion Across Global Network
Payment volume on American Express cards hit $454 billion in the third quarter, representing an eight percent increase year-over-year both as reported and on an adjusted currency basis.
The company generated additional revenue from higher outstanding card loans and rising fee income, alongside strong customer acquisition and retention rates. Provisions for credit losses fell to $1 billion from $1.3 billion in the prior-year quarter. The net write-off rate for consumer and small business clients dropped from 1.9 percent to 1.8 percent.
Total operating expenses grew nine percent to $14.5 billion. Higher costs for customer loyalty programs and the redesign of the American Platinum Card drove the expense increase. The sale of a company stake offset those operating costs.
Divestiture Sale Boosts Reported Net Income
The quarterly figures reflect the sale of an equity stake in Global Business Travel Group (GBTG). American Express recorded a pre-tax gain of $982 million from the transaction.
Adjusted net income, excluding the divestiture gain and restructuring charges, reached $3.2 billion. That figure represents an 11 percent increase over the previous year. For the first nine months of the year, revenues after interest expense rose ten percent to $58.6 billion. Reported net income for the nine-month period reached $9.8 billion, up 17 percent from the prior-year period.
Management Updates Guidance for Fiscal Year 2026
Based on the third-quarter results, American Express updated its financial guidance for fiscal year 2026. The company projects diluted earnings per share between $18.30 and $18.60.
Adjusted earnings per share are expected to range from $17.60 to $17.90. That range represents projected adjusted growth of 14 to 16 percent compared to 2025. Management continues to target overall revenue growth of approximately ten percent for the full year.
Expanded Offerings for Corporate Clients and Travelers
The company rolled out new products alongside its financial growth. The Amex Corporate platform now features integrated expense management software, a mobile application, and corporate cards with cashback features.
A new business savings account joined the commercial portfolio. In the travel sector, American Express extended its strategic partnership with Marriott International and agreed to a new collaboration with Airbnb. The Airbnb partnership will add more than one million accommodations worldwide to Amex Travel. The firm also expanded digital services with new integrations for the restaurant platform Resy and artificial intelligence-assisted commerce applications.
Network Expansion Reaches 190 Million Merchant Locations
The American Express merchant network expanded to more than 190 million acceptance locations worldwide. Acceptance points outside the United States more than doubled over a four-year period.
The premium travel network grew with the opening of a Centurion Lounge at Amsterdam Airport Schiphol, bringing the total number of lounges to 33. Construction is underway for a larger lounge at Newark airport.