American Express raises 2026 profit outlook after record $20.1 billion quarter

American Express lifted its full-year earnings forecast on Friday after posting record third-quarter revenue, as card members kept spending and credit quality held up, according to the company's 8-K earnings release.

Revenue net of interest expense rose 9% from a year earlier to $20.1 billion. Net income climbed 28% to $3.7 billion, or $5.42 a share, up from $4.14. Stripping out a $982 million pre-tax gain from the previously announced sale of its stake in Global Business Travel Group, net of restructuring costs, adjusted earnings were $4.68 a share, up 13%.

Guidance moves higher

The company now expects full-year 2026 EPS of $18.30 to $18.60, or $17.60 to $17.90 on an adjusted basis, and said it remains on track for another year of roughly 10% revenue growth.

"Our business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality," Chairman and CEO Stephen Squeri said in the release.

Spending and credit

Billed business rose 8% to $454.0 billion. The release said revenue growth was driven by higher card member spending, higher net interest income from growing card balances, and strong card fee growth.

Provisions for credit losses fell to $1.0 billion from $1.3 billion a year earlier, reflecting a reserve release this quarter compared with a reserve build a year ago. The net write-off rate edged down to 1.8% from 1.9%.

Expenses rose 9% to $14.5 billion, mainly on higher customer engagement costs tied to spending and the refresh of the U.S. Platinum Card. The release said operating expenses fell overall because the GBTG gain offset higher legal reserves for previously disclosed matters and restructuring costs. The effective tax rate dropped to 18.1% from 24.1% on discrete tax benefits.

Business highlights

American Express said it extended its long-term partnership with Marriott International, including the U.S. co-brand cards, launched a partnership with Airbnb that brings more than one million listings to Amex Travel, and introduced a new Business Savings account. Card acceptance passed 190 million merchant locations worldwide.

By the numbers

• Revenue: $20.1 billion, up 9%
• Net income: $3.7 billion, up 28%
• EPS: $5.42 GAAP, $4.68 adjusted
• Billed business: $454.0 billion, up 8%
• Net write-off rate: 1.8%
• 2026 EPS guidance: $18.30 to $18.60

Sources

1. American Express Company, Form 8-K with Exhibit 99.1 filed Oct. 23, 2026, accession 0000004962-26-000405

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