American Express Earnings Rise on Premium Spending

American Express earnings showed stronger first-quarter results on April 23, 2026, as affluent customers increased travel and luxury spending, boosting revenue despite higher customer-engagement costs and a cautious fiscal 2026 outlook that limited near-term momentum.

Quarter Results and Volumes

American Express reported total revenues net of interest expense of $18.9 billion in the first quarter, up 11% year over year. Diluted earnings per share rose 18% to $4.28, while net income increased 15% to $2.97 billion. Billed business grew 10% to $428 billion, supported by strength in premium card spending on travel, luxury goods, and airfares. Network volumes climbed 11% to $486.3 billion.

Provisions for credit losses rose 9% to $1.25 billion, while the principal-only net write-off rate on consumer and small-business cards eased to 2.0% from 2.1% a year earlier. Return on average common equity was 36.6%, the Common Equity Tier 1 ratio stood at 10.5%, and the effective tax rate was 21.4%.

Guidance and Cost Outlook

Total expenses increased 11% to $13.9 billion, driven by higher variable customer-engagement costs, including rewards, a U.S. Platinum Card refresh, and expanded travel benefits. The company reaffirmed fiscal 2026 revenue growth of 9%–10% and earnings per share of $17.30–$17.90 in its first-quarter earnings release.

American Express plans to increase marketing and technology investments. It expects the variable customer engagement-to-revenue ratio to remain near 44% for 2026 and projects operating expenses to grow in the mid-single digits. The board raised the quarterly dividend to $0.95 per share.

The results reflect a trade-off in American Express’s strategy: premium-card customers sustain top-line growth even as management accepts higher near-term costs to refresh benefits and support long-term expansion.