American Express raises 2026 EPS guidance to $18.30-$18.60 on record $20.1 billion revenue

American Express reported record third-quarter revenue of $20.1 billion, up 9% from a year earlier, and raised its 2026 earnings guidance, according to its results release dated October 23.

What happened

Revenue net of interest expense was $20,062 million. Billed business, the total Card Member spending on its network, was $454.0 billion, up 8% from $421.0 billion. Net income rose 28% to $3,712 million, and earnings per share rose 31% to $5.42 from $4.14. Adjusted earnings per share, which exclude a $982 million pre-tax gain ($751 million after tax) from selling the company's equity interest in Global Business Travel Group, net of the part of the gain used to fund restructuring, were $4.68, up 13%.

The release attributes the revenue increase to "higher Card Member spending, increased net interest income supported by growth in card balances, and strong card fee growth."

Credit quality

Provisions for credit losses were $1.0 billion, against $1.3 billion a year earlier, because the company released reserves in the quarter after building them a year ago, partly offset by higher net write-offs. The third-quarter net write-off rate was 1.8%, down from 1.9% a year ago. Chairman and Chief Executive Officer Stephen J. Squeri cited "excellent credit quality."

Expenses rose 9% to $14.5 billion, driven by customer engagement costs tied to higher spending and the U.S. Platinum Card refresh. The effective tax rate was 18.1%, down from 24.1%, which the company attributed to discrete tax benefits.

The outlook

American Express now expects 2026 earnings per share of $18.30 to $18.60, or $17.60 to $17.90 on an adjusted basis, and said it is "on track to deliver another year of 10 percent revenue growth." Its executives discussed the results on a call at 8:30 a.m. Eastern time on October 23.