American Express Lifts 2026 EPS Outlook After GBTG Gain

The Tip Desk · October 24, 2026 · 3 min read

Third-quarter revenue net of interest expense was $20.1 billion, up 9% year over year, as the company raised full-year EPS guidance to $18.30–$18.60.

American Express (AXP) raised its full-year 2026 earnings-per-share outlook to $18.30 to $18.60, or $17.60 to $17.90 on an adjusted basis, after a third quarter in which GAAP diluted EPS reached $5.42, up 31% from a year earlier, including a $982 million pretax gain on the sale of its equity interest in Global Business Travel Group. Adjusted EPS was $4.68, up 13% year over year. The prior outlook, set after the second quarter, was $17.30 to $17.90.

Consolidated total revenues net of interest expense were $20.1 billion, up 9% year over year, after $19.6 billion and 10% year-over-year growth in the second quarter. The company said the increase was driven primarily by higher Card Member spending, increased net interest income supported by growth in card balances, and strong card fee growth. Chairman and Chief Executive Officer Stephen J. Squeri said the company is on track to deliver another year of 10% revenue growth.

Billed business was $454.0 billion, up 8% year over year, after $455.8 billion and 9% year-over-year growth in the second quarter. Network volumes were $517.9 billion. U.S. Consumer Services billed business was $194.2 billion, up 9% year over year. Pretax income in that segment was $2.30 billion, up 24% year over year.

U.S. Consumer Services net interest income was $3.55 billion, up 10% year over year, after $3.30 billion in the second quarter. Interest income was $4.29 billion and interest expense $745 million. Net interest yield on average Card balances and Other loans was 8.5%, versus 8.1% in the second quarter. Average Card balances and Other loans were $230.6 billion. Period-end Card balances, less reserves, were $215.4 billion. Customer deposits were $155.0 billion.

Consolidated provisions for credit losses were $1.0 billion, down from $1.3 billion a year ago, reflecting a reserve release versus a prior-year build, partially offset by higher net write-offs. The third-quarter net write-off rate was 1.8%, down from 1.9% a year ago. In the second quarter provisions were $1.1 billion and the net write-off rate was 2.0%, flat year over year. U.S. Consumer Services net write-off rate (principal only) was 1.6%. Thirty-plus days past due as a percentage of total was 1.2%.

Consolidated expenses were $14.5 billion, up 9% year over year, after 12% year-over-year growth in the second quarter. The company attributed the increase primarily to higher variable customer engagement costs from increased Card Member spending and the U.S. Platinum Card refresh, partially offset by lower operating expenses. The consolidated effective tax rate was 18.1%, versus 23.6% in the second quarter, primarily reflecting discrete tax benefits related to the resolution of certain prior-period tax items.

Basel III CET1 to risk-weighted assets was 10.9% at period end, versus 10.4% in the second quarter; CET1 capital was $29.3 billion. Return on average equity was 42.4%, versus 36.4% in the second quarter; return on average common equity was 43.6%. Cash dividends declared were $0.95 a share. Average diluted common shares outstanding were 674 million.

The company said it is on track to deliver another year of 10% revenue growth. Card acceptance reached more than 190 million merchant locations worldwide. American Express launched an exclusive partnership with Airbnb, bringing over one million listings globally to Amex Travel, and opened a Centurion Lounge at Amsterdam Airport Schiphol, bringing the total to 33 locations.