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AmEx raises 2026 revenue growth forecast as affluent cardholders keep spending
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AmEx raises 2026 revenue growth forecast as affluent cardholders keep spending
Jul 24, 2026 4:28 AM

July 24 (Reuters) - American Express ( AXP ) increased its full-year revenue growth forecast and beat Wall Street expectations for second-quarter profit on Friday as its affluent customers continued to swipe their cards for travel and dining despite lingering economic uncertainty.

Unlike many rivals that cater to a broader range of borrowers, the credit card issuer derives much of its business from higher-income consumers, who are generally better-positioned to weather inflationary pressures and maintain discretionary spending.

Billed business, a measure of total spending on AmEx cards, rose 9% to $455.8 billion, on a foreign exchange-adjusted basis. Its revenue rose 10% to $19.6 billion in the quarter.

"Six months into the year, we're seeing stronger momentum than we expected. The investments we made in our value propositions have driven accelerated spend and revenue growth," said CEO Stephen Squeri in a statement.

The company now expects 2026 revenue to grow 10% - in line with Wall Street expectations, according to estimates compiled by LSEG. The stock was last down 1.4% in volatile premarket trading after AmEx maintained its profit growth forecast.

AmEx's earnings offer an early look at spending patterns among affluent consumers, providing investors with an early read on discretionary spending before other major card networks report results.

The company posted a profit of $4.53 per share for the three months ended June 30, compared with $4.08 per share a year earlier. Analysts expected earnings of $4.40 per share.

The New York-based company set aside $1.1 billion in consolidated provisions for credit losses in the quarter, versus $1.4 billion a year ago.

U.S. consumer sentiment rebounded from record lows in June, despite households remaining worried about the high cost of living, according to the University of Michigan's Surveys of Consumers.

Loan-loss provisions, often referred to as rainy-day reserves, reflect how much a lender sets aside to cover loans it expects may not be repaid, offering a window into how confident it is that borrowers will keep up with payments.

(Reporting by Rishab Shaju and Manya Saini in Bengaluru; Editing by Joyjeet Das)

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