Track market-moving stories before they get noisy

American Express (AXP.N) raised its 2026 profit forecast above Wall Street expectations on Friday after reporting strong ​third-quarter results and announced plans to eliminate 5% of its global ‌workforce as part of a restructuring.

Airlines worldwide have raised ticket prices in recent months as they grapple with surging fuel prices stemming from the Middle East conflict and disruptions to global ​oil flows.

AmEx's travel and entertainment spending rose 10% in the third quarter ​from a year earlier, led by a 13% jump in the ⁠airline category and a 9% rise in the restaurant category.

"Of course, there is ​some impact here from the average ticket size and airline price increases," Chief ​Financial Officer Christophe Le Caillec told Reuters in an interview, referring to the airline segment.

By targeting affluent consumers with high credit scores and more disposable income, the credit card giant has built ​a moat around its business to keep broader economic slowdowns and uncertainty at ​bay.

Billed business, a measure of total spending on all AmEx-issued cards, rose 8% in the ‌third quarter ⁠to $454 billion. Revenue climbed 9% to $20.1 billion.

AmEx expects full-year adjusted profit in the range of $17.60 to $17.90 per share, with the mid-point well above estimates of $17.63, according to data compiled by LSEG.

The company has invested heavily in attracting younger consumers, particularly ​Gen Z and millennials, ​as it seeks ⁠to build long-term customer relationships and expand its global market share to sustain growth.

AmEx posted an adjusted profit $4.68 per share ​in the quarter ended September 30, sailing past Wall Street ​expectations of ⁠about $4.48.

The stock fell 1.3% in volatile premarket trading after the results. If the decline holds, it would mark the ninth time in 11 quarters that the stock has ⁠fallen despite ​results beating expectations, Truist analyst Brian Foran wrote ​in a note.

"Maybe we all work too hard, and the investor strategy is just short the quarter, ​long the rest," he added.

In the world of finance, American Express (AXP -0.09%) is a unique operation. It not only issues cards to customers, taking on credit risk in the process, but it also runs the underlying payments platform that connects merchants and consumers. This is a closed-loop model that allows the business to capture more of the economics anytime its cards are used at checkout.

As of June 30, there were 155 million American Express cards in use in more than 200 countries around the globe, giving it massive reach. It's best known for the Platinum Card, which targets affluent consumers with an $895 annual fee that comes with valuable perks and rewards.

Even Warren Buffett has long been a fan of the company. Berkshire Hathaway owns 151.6 million shares, giving it a 22.5% stake in American Express. That's a major vote of confidence.

Prospective investors might be interested in adding the business to their portfolios. The financial stock trades 20% off its record from December 2025 (as of Oct. 14). But what will the fourth quarter bring? Here's what history says.

Image source: The Motley Fool.

Looking at every fourth quarter since 2020 This decade, the fourth quarter of each calendar year has rewarded investors with positive returns far more frequently than declines. During Q4 2021, the stock dipped 2%. That small blip was hardly a reason to panic.

In the fourth quarters of 2020 (+21%), 2022 (+10%), 2023 (+26%), and 2025 (+11%), American Express posted double-digit gains. During Q4 2024, the stock rose 9%, which was still a very respectable performance.

So far this month, shares have risen by just 1%. Looking at the data, however, history says that the payments stock could end this year on a high note. Past performance never guarantees future results, but that track record is hard to ignore.

Think in terms of years, not months It can be challenging not to try to assess what a particular stock will do in the next few months. But these short-term price swings are impossible to predict. Weaker market sentiment, which can occur for any number of reasons, can send shares quickly lower.

These moves, however, have minimal impact on an outstanding company's long-term trajectory. The best investors always keep this in the back of their minds. Focus on the next five years and beyond. That's where the wealth is made.

$313.59-$0.28 (-0.09%)

NYSE · As of 4:00 PM ET 10/16/26

With American Express, investors will find that the valuation is very attractive. The stock trades at a forward price-to-earnings ratio of 15.1. Compared to the S&P 500 index's multiple of 19.6, this is a notable 23% discount.

Just because a stock looks cheap, though, it doesn't automatically mean you should buy it. Investors must make sure this is a high-quality company.

With American Express, it starts with the wide economic moat. Its brand exudes status and trust that rival banks dream of, enabling the business to occasionally increase annual fees without disturbing new card additions. And the payments infrastructure supports a two-sided network effect that becomes more valuable to stakeholders as it gets bigger.

The moat shows up in the financial results. Revenue and net income both increased by 11% last quarter (Q2 ended June 30). These aren't flashy gains, but the consistency and durable is what matters.

Management expects the growth to continue. The long-term target calls for 10% (or more) revenue and mid-teens earnings per share (EPS) gains, respectively. Besides higher card fees and more card members, American Express sees each customer spend more over time.

Shareholders also benefit from ongoing stock buyback activity. The business reduced its diluted outstanding share count by 3% in the past 12 months, supporting EPS trends.

Viewed next to the valuation, these favorable traits make American Express a worthy investment candidate.

NorthCrest Asset Manangement LLC increased its stake in American Express Company (NYSE:AXP – Free Report) by 171.5% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 41,413 shares of the payment services company’s stock after acquiring an additional 26,158 shares during the quarter. NorthCrest Asset Manangement LLC’s holdings in American Express were worth $12,594,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Avior Wealth Management LLC raised its holdings in American Express by 0.8% during the 3rd quarter. Avior Wealth Management LLC now owns 16,599 shares of the payment services company’s stock worth $5,048,000 after purchasing an additional 131 shares during the last quarter. Baldwin Wealth Partners LLC MA raised its stake in American Express by 1,178.3% during the third quarter. Baldwin Wealth Partners LLC MA now owns 8,488 shares of the payment services company’s stock worth $2,581,000 after buying an additional 7,824 shares during the last quarter. Woodstock Corp lifted its holdings in American Express by 24.5% in the third quarter. Woodstock Corp now owns 5,425 shares of the payment services company’s stock valued at $1,650,000 after buying an additional 1,069 shares during the period. Marquette Asset Management LLC lifted its holdings in American Express by 35.4% in the third quarter. Marquette Asset Management LLC now owns 172 shares of the payment services company’s stock valued at $52,000 after buying an additional 45 shares during the period. Finally, Tilia Fiduciary Partners Inc. lifted its holdings in American Express by 4.4% in the third quarter. Tilia Fiduciary Partners Inc. now owns 8,282 shares of the payment services company’s stock valued at $2,519,000 after buying an additional 350 shares during the period. 84.33% of the stock is currently owned by institutional investors.

American Express News Summary Here are the key news stories impacting American Express this week:

Positive Sentiment: JPMorgan maintained an “overweight” rating while lowering its price target from $400 to $360, implying approximately 15.5% potential upside from the recent trading level. JPMorgan price target report Positive Sentiment: American Express is reportedly expanding its Gen Z customer base about 40%, substantially faster than its Boomer customer base. Stronger younger-customer adoption could support long-term spending volumes and card growth. American Express Gen Z growth article Positive Sentiment: American Express was named title sponsor of the inaugural Hong Kong Sail Grand Prix, expanding its global marketing and premium-card brand exposure. The event is more strategically supportive than financially material in the near term. Hong Kong Sail Grand Prix sponsorship announcement Neutral Sentiment: American Express is scheduled to participate in upcoming investor conferences, potentially giving management an opportunity to discuss growth plans, regulatory remediation and its financial outlook. Investor conference announcement Negative Sentiment: American Express National Bank was fined $350 million by the OCC and received a cease-and-desist order over weaknesses in its anti-money-laundering controls and suspicious-activity reporting. Although the company says the action does not change near-term guidance, remediation expenses, oversight requirements and reputational risks could pressure margins and management focus. OCC AML enforcement article Negative Sentiment: A law firm is investigating potential shareholder claims related to the company, adding a governance and litigation overhang, although such investigations do not necessarily lead to financial recovery or formal litigation. Shareholder investigation announcement Analysts Set New Price Targets A number of brokerages have commented on AXP. Truist Financial cut their price target on shares of American Express from $375.00 to $370.00 and set a “buy” rating on the stock in a research report on Wednesday, September 23rd. BTIG Research dropped their price objective on American Express from $315.00 to $230.00 and set a “sell” rating on the stock in a research note on Monday, September 7th. BMO Capital Markets began coverage on American Express in a research report on Thursday. They set an “outperform” rating and a $380.00 target price on the stock. Evercore set a $320.00 target price on American Express in a research report on Thursday, October 1st. Finally, Bank of America raised their target price on American Express from $387.00 to $391.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $365.63. Get Our Latest Report on American Express

Shares of NYSE AXP opened at $311.57 on Tuesday. The company has a quick ratio of 1.54, a current ratio of 1.55 and a debt-to-equity ratio of 1.66. The firm has a market cap of $210.41 billion, a PE ratio of 18.91, a P/E/G ratio of 1.33 and a beta of 1.08. The company’s fifty day simple moving average is $323.84 and its 200 day simple moving average is $325.10. American Express Company has a 12-month low of $290.97 and a 12-month high of $387.49.

American Express (NYSE:AXP – Get Free Report) last posted its quarterly earnings results on Friday, July 24th. The payment services company reported $4.53 earnings per share for the quarter, beating the consensus estimate of $4.41 by $0.12. American Express had a net margin of 15.07% and a return on equity of 34.12%. The firm had revenue of $14.99 billion during the quarter, compared to the consensus estimate of $19.70 billion. During the same period in the previous year, the firm posted $4.08 earnings per share. The business’s revenue was up 10.0% compared to the same quarter last year. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. As a group, sell-side analysts forecast that American Express Company will post 17.67 earnings per share for the current fiscal year.

American Express Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 9th will be paid a $0.95 dividend. The ex-dividend date is Friday, October 9th. This represents a $3.80 annualized dividend and a dividend yield of 1.2%. American Express’s dividend payout ratio (DPR) is currently 23.06%.

American Express Company Profile (Free Report)

American Express Company (NYSE: AXP) is a global financial services company that provides payment, lending, travel and related products to consumers, small businesses and corporate customers. Its offerings include consumer and business charge and credit cards, payment solutions, commercial financing, deposit products and rewards programs.

American Express also operates a worldwide merchant network and provides businesses with payment acceptance services, transaction-processing capabilities and data-driven marketing solutions.

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It's been a tough year for American Express (AXP +1.09%). Shares have fallen 18% in 2026 (as of Oct. 8). The overall market, on the other hand, has advanced 14% this year.

The financial stock currently sits at about $302 per share, which is only 4% above its 52-week low from March. That's also below the average price of $315.77 that the leadership team paid to repurchase 7.1 million shares during the second quarter.

Does this mean that American Express is a smart buying opportunity right now? Here's how investors should make sense of the situation.

Image source: The Motley Fool.

The business buys back shares every quarter
During the three months that ended June 30, American Express spent $2.2. billion in total on stock buybacks. At the end of Q2, the diluted outstanding share count was 3% lower than a year ago. Investors appreciate this trend, as it provides a lift to earnings per share (EPS).

Now that the stock price is below what management paid, astute investors are wondering whether this is a valuable signal that it's time to add the premium credit card enterprise to their portfolios. The company's executive team should have a firm grasp of the intrinsic value. Repurchasing shares should be done at attractive stock prices. This suggests that shares could be even more undervalued today.

But it's important to take a step back and realize that American Express is a perennial share repurchaser. It bought back $1.7 billion worth of stock in the first quarter, after repurchasing $5.3 billion all of last year. During Q4 2025, when the shares reached a record high, the company still spent $899 million repurchasing shares.

The activity does fluctuate. In recent years, buybacks have been highest in the third quarter, with much less repurchasing happening in Q4. In Q3 last year, for instance, American Express spent $2.5 billion buying back stock at its then-all-time high. It's hard to make any definitive conclusions.

Premium Feature

Moneyball Superscore

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Today's Change

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Think about the next five years
I believe investors should spend more time focusing their attention on what the future will bring. Think about American Express through the lens of a potential long-term investment. Although the stock is down 18% this year, the underlying business is still operating at full strength.

The company raised its quarterly dividend in March by 16%. And it maintained 2026 EPS guidance within a range of $17.30 to $17.90, equating to a 14% increase (at the midpoint) year over year. These are signs of a healthy business that's performing well amid an uncertain macroeconomic environment.

It might be a smart idea to buy the dip on American Express.

American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.

American Express logo and trading symbol are displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., December 6, 2017. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesOCC says lender failed to identify, evaluate and report roughly $13 billion in suspicious activityOCC cites insufficient resources, inexperienced staff, weak training ​and internal control gapsWASHINGTON, Oct 8 (Reuters) - American Express was fined $350 million by US bank regulators after they determined the lender's ​programs to identify potential money laundering were insufficient and ​the company potentially missed billions of dollars in suspicious activity.

The ⁠US Office of the Comptroller of the Currency and the ​Federal Reserve announced the enforcement action Thursday, saying the company, primarily ​via its national bank, failed to maintain a sufficient anti-money laundering compliance program, including inadequate resources, inexperienced staff, weak training, and internal control gaps.

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A spokesperson ​for American Express, which did not admit or deny the ​regulators' findings, did not respond immediately to a request for comment.

The OCC said "systemic ‌breakdowns" ⁠in its monitoring and reporting meant the lender failed to identify, evaluate and sufficiently report roughly $13 billion in suspicious activity over the past decade.

"The OCC expects banks of American Express’s size and ​complexity to devote ​sufficient resources ⁠to ensure compliance with laws and regulations designed to detect and prevent money laundering, which are ​critical to both economic and national security,” said Comptroller ​of ⁠the Currency Jonathan Gould in a statement.

Specifically, the OCC said American Express focused on risks in its relatively narrow deposit products, while ⁠not devoting ​sufficient attention to its much larger ​credit card business. The regulator also identified shortcomings in customer due diligence and identification ​programs.

Adds regulators' comments, effort to reach ‌American Express for comment

Reporting by Pete Schroeder and Chris Prentice; Editing by Sonali Paul

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American Express is making another big bet on airport lounges, and its next expansion includes what will become the largest Centurion Lounge in its network.

The company announced plans to open new Centurion Lounges at Newark Liberty International Airport and London Heathrow on Thursday, along with plans to significantly expand its existing spaces in the Philadelphia and Houston airports.

American Express (Amex) is calling it the largest expansion of the Centurion Lounge network to date.

The headline addition is Newark.

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Amex had previously announced plans for an 18,000-square-foot lounge at the airport, but it has now expanded those plans to more than 30,000 square feet. The two-story lounge is scheduled to open in Terminal A in 2027.

Once it opens, American Express says it will become the first credit card issuer to operate proprietary lounges at all three major New York City-area airports. The company already operates Centurion Lounges at John F. Kennedy International Airport and LaGuardia Airport.

“Since opening our first Centurion Lounge more than a decade ago, we continue to find ways to meet the growing demand for our premium airport lounge experiences,” said Audrey Hendley, president of American Express Travel. “As the Centurion Lounge Network grows, we’re investing in the lounges our Card Members already know and love while continuing to open new spaces.

Explore Topicsairport loungeAmerican ExpressAmEx

American Express, the premium credit-card and payments company
AXP +0.41% 89

, joined JPMorgan's October value-stock picks after an 18% year-to-date slide, according to TipRanks. Shares traded near $302.70, down roughly 0.1%, at approximately 11:24 a.m. ET on October 5. The valuation snapshot puts the stock 6.69% below its $324.39 GF Value estimate—a modest discount that leaves limited room for disappointment.

The business still has momentum. American Express reported second-quarter revenue of $19.64 billion, up 10%, as Card Member spending climbed 9%. Credit-loss provisions fell to $1.1 billion from $1.4 billion. But that improvement needs context: a reserve release helped lower provisions, while higher net write-offs pulled the other way. Lower provisions alone do not prove borrowers are getting stronger.

JPMorgan's selection gives the stock attention. Spending growth and credit performance will determine whether it deserves a recovery. If customers keep swiping and losses stay contained, the pullback could offer an opening. If delinquencies accelerate, that modest valuation cushion could disappear quickly. The next earnings report needs to deliver evidence, not just another endorsement.

Check the Warning Signs for

AXP

now!

SummaryAmerican Express presents a compelling buy after a pullback, trading at a forward P/E of 17.15, just below its historical norm.AXP’s closed-loop model, premium customer base, and expanding global merchant acceptance drive robust fundamentals and durable long-term growth.Platinum card adoption, traction among Millennials and Gen Z, and agentic commerce initiatives underpin growth catalysts and high expected EPS growth.With a solid balance sheet, strong capital returns, and analysts projecting 14% annual EPS growth through 2028, I maintain a 'Buy' rating on AXP.Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »Guido Mieth/DigitalVision via Getty Images

As a value investor, I get more excited when a quality stock's price goes down rather than up. That's why the recent rout in financial stocks have me intrigued. It's important to separate the wheat from the chaff, as

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AXP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

American Express (AXP.N) said ​on Monday its credit cards can now be used at over ‌190 million merchant locations worldwide, with acceptance outside the US having more than doubled over the past four years.

The expansion attempts to address a longstanding gap between AmEx and rival ​card networks Visa (V.N) and Mastercard (MA.N), which have historically had broader merchant acceptance ​outside the US and greater scale in many key international markets.

The ⁠company said it focused on strengthening acceptance in locations where card members were ​spending their time, including travel destinations such as Barcelona, Hong Kong, Paris and ​Sicily.

"We also think about locations that will be popular for big events, so say, sporting events, and that's driven us to focus on places like Mexico City and Melbourne," Anna Marrs, ​group president, global merchant and network services at AmEx, told Reuters in an ​interview.

The company, Marrs said, has also targeted other categories such as restaurants that drive card-member spending.

For ‌card ⁠networks, acceptance is key to driving spending. The more places a card can be used, the more likely customers are to use it for everyday purchases, travel and other expenses, creating more transaction volume and revenue.

In the most recent quarter, ​billed business, a measure ​of spending on ⁠AmEx issued cards, jumped 9% to $455.8 billion.

The push comes as it seeks to capture a greater share of international spending ​from younger customers, who have become an increasingly important part ​of its ⁠user base.

The company reported 10% growth in quarterly revenue to $19.6 billion in July.

AmEx said it continues to deepen relationships with global payment platforms, payment facilitators, licensed partners and ⁠local ​acquirers to expand acceptance at scale.

"We continue to ​see opportunities all over the world," Marrs said. "We're not yet resting in terms of the coverage gains ​that we want to drive."

Key Takeaways American Express launches high-yield Business Savings, bringing checking and cards onto one platform.The 2.95% APY offering has no minimum balance or monthly maintenance fee, with fee-free transfers.American Express plans rewards deposits and payroll tools to broaden its business-finance platform. American Express Company (AXP - Free Report) is expanding its presence by launching a high-yield savings option for business clients.This brings Business Checking and Business Savings under AmEx Business Banking. Customers can manage their banking and Card products in one place. They do not need an AmEx card to apply. The launch also expands the platform with the Graphite Business Cash Unlimited Card rewards deposit feature, expected later this year, and a Gusto-powered payroll solution with AI insights, expected early next year. These additions broaden AmEx’s role in business finances.

The offering provided a 2.95% annual percentage yield as of Sept. 15, with no minimum balance or monthly maintenance fee. Customers can make ACH, wire and check deposits at no additional cost, while same-day ACH transfers will cost $10. Transfers between Business Checking and Business Savings are instant and fee-free, with accounting software integration. According to an AmEx survey, 82% of businesses believe excess cash could be put to better use in savings. The survey covered 1,165 small-business financial decision-makers.

The broader strategy is to bring more business-finance needs onto one platform. 93% of surveyed businesses want banking and financial tools to work together seamlessly, while 81% want better visibility into upcoming payroll payments and 65% prioritize payroll streamlining. Later this year, Graphite cardholders can redeem Reward Dollars into Business Checking at 1:1.

The financial opportunity centers on deposit growth and broader product usage. Business deposits would give American Express an additional funding source, although paying interest on those balances will affect the economics of the offering. The impact will depend on how quickly deposits grow and how effectively those funds are deployed. Adding savings to checking, cards and payroll could deepen customer relationships and improve retention.

AXP’s Stock Price PerformanceThe stock has declined 3.5% over the past year, outperforming the industry’s 28% decline during the same period.

Image Source: Zacks Investment Research

AXP’s Zacks Rank & Key PicksAXP currently carries a Zacks Rank #3 (Hold).

Investors interested in the broader Finance space may consider some better-ranked stocks like Bread Financial Holdings, Inc. (BFH - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, and Axos Financial, Inc. (AX - Free Report) and Oportun Financial Corporation (OPRT - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Bread Financial's 2026 earnings is pegged at $12.10 per share. Over the past 60 days, the estimate has seen four upward revisions with no movement in the opposite direction. BFH beat earnings estimates in each of the trailing four quarters, with the average surprise being 147.1%. The consensus estimate for 2026 revenues is pinned at $3.98 billion, indicating 3.6% year-over-year growth.

The Zacks Consensus Estimate for Axos Financial's 2026 earnings is pegged at $9.59 per share. Over the past 60 days, the estimate has seen two upward revisions with no movement in the opposite direction. AX beat earnings estimates in three of the trailing four quarters and missed one, with the average surprise being 6.7%. The consensus estimate for 2026 revenues is pinned at $1.61 billion, indicating 8.7% year-over-year growth.

The Zacks Consensus Estimate for Oportun Financial's 2026 earnings is pegged at $1.57 per share. Over the past 60 days, the estimate has seen one upward revision with no movement in the opposite direction. OPRT beat earnings estimates in each of the trailing four quarters, with the average surprise being 20.3%. The consensus estimate for 2026 revenues is pinned at $944.41 million.

Key Takeaways American Express' Commercial Services billed business grew 5% in Q2, while revenue rose 7% to $4.5B.AXP launched an expense-management pilot and added a $300 ChatGPT Business credit to select business cards.Small-business balances rose 8% to $56.2B, while 30-plus-day delinquencies improved to 1.3%. American Express Company (AXP - Free Report) can defend its small-business franchise, but the pressure is greatest in the middle market, where fintechs such as Ramp and Brex compete with fast expense tools and integrated software. The latest quarter showed that AmEx is still growing in this segment and addressing the issues with new launches.

Commercial Services billed business grew 5% year over year in the second quarter of 2026, reflecting accelerating spending growth among U.S. small and mid-sized business customers, improving from 4% in the first quarter and 2% a year earlier, while segment revenue rose 7% to $4.5 billion. Small-business card balances increased 8% to $56.2 billion.

Management also launched a pilot of its new expense-management platform for middle-market customers and added a $300 ChatGPT Business credit to U.S. Business Platinum and Gold cards. These moves strengthen the value proposition beyond payments. Still, fintech competition remains a risk because software-led rivals can win customers through simplicity and workflow integration. AXP’s advantage lies in its brand, rewards, lending capabilities and merchant network, giving it a base to defend share.

AXP’s credit quality remains strong, but with delinquency rates already low, further improvement may be limited. In the second quarter, the 30-plus-day delinquency rate for small-business card balances fell to 1.3% from 1.4% a year earlier, while the principal-only net write-off rate held steady at 2.3%.

Consumer credit also improved, with delinquencies declining to 1.1% from 1.2% and write-offs easing to 1.9% from 2%. Lower delinquencies also drove a $191 millionreserve release during the quarter, helping credit-loss provisions fall 23% to $1.1 billion.

How are Peers Placed?JPMorgan Chase & Co. (JPM - Free Report) has considerable scale in small business, serving 7.4 million small-business customers at 2025 year-end and providing $17 billion of credit to U.S. small businesses in the first half of 2026. However, JPM’s second-quarter Business Banking average loans declined 5% year over year to $18.3 billion, while originations fell 16%. Meanwhile, Synchrony Financial (SYF - Free Report) is expanding its business-credit presence through commercial cards and receivables products. Commercial credit products reached $2.7 billion at June-end, up from $1.8 billion at 2025-end, aided by SYF’s acquisition of Lowe’s commercial card receivables. These trends show that AXP faces well-funded competitors pursuing business customers through different channels.

AmEx’s Price Performance, Valuation and EstimatesShares of AXP have declined 9.9% year to date, underperforming the broader industry’s 6.3% fall.

Image Source: Zacks Investment Research

From a valuation standpoint, AmEx trades at a forward price-to-earnings ratio of 17.19X, higher than the industry average of 16.86X. It carries a Value Score of C.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AmEx’s 2026 earnings implies a 14.9% rise year over year, followed by 14.6% growth next year.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allworth Financial LP purchased a new position in shares of American Express Company (NYSE:AXP) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 142,143 shares of the payment services company’s stock, valued at approximately $48,080,000.

Several other institutional investors and hedge funds also recently modified their holdings of AXP. Greenspring Advisors LLC acquired a new position in shares of American Express during the second quarter valued at approximately $506,000. B. Metzler seel. Sohn & Co. AG acquired a new stake in American Express in the second quarter worth approximately $25,040,000. TrinityBridge Ltd bought a new position in American Express during the 2nd quarter valued at $271,000. AlpenGlobal Capital LLC bought a new position in American Express during the 2nd quarter valued at $7,479,000. Finally, Silvant Capital Management LLC acquired a new position in shares of American Express during the 2nd quarter valued at $9,491,000. Institutional investors own 84.33% of the company’s stock.

American Express News Roundup Here are the key news stories impacting American Express this week:

Positive Sentiment: American Express expanded its virtual-card capabilities for U.S. commercial customers through its @ Work platform and Conferma. The initiative could strengthen AXP’s position in corporate payments by improving security, spending controls, and integration with business and travel workflows. Is American Express’ Expanded Virtual Cards Strategy Deepening Its Corporate Moat in Premium Payments? Positive Sentiment: AXP became the official payments partner of St Andrews Links, expanding its premium sports and lifestyle partnership portfolio. The agreement may support international brand awareness, card-member engagement, and premium-card acquisition, although the near-term financial impact is likely limited. American Express and St Andrews Links Trust Announce Partnership Positive Sentiment: A recent profile highlighted CEO Steve Squeri’s strategy of attracting younger customers with premium products such as the Platinum Card. The company’s success with millennials and Gen Z supports the long-term value of its premium-card model. The American Express CEO Defied Haters Neutral Sentiment: Analyst opinions on American Express are mixed, indicating limited consensus on the stock’s valuation and outlook. Management is scheduled to participate in the Barclays Global Financial Services Conference on September 16, which could provide additional commentary on spending trends, credit quality, and guidance. Analysts’ Opinions Are Mixed on American Express American Express to Participate in Barclays Global Financial Services Conference Negative Sentiment: A 2026 Long Angle survey of more than 9,000 high-net-worth individuals found that Amex and Chase lagged other providers in loyalty, while Fidelity and Schwab ranked better in banking-related categories. The findings raise concerns about customer retention and competitive pressure in an important premium segment. Long Angle High-Net-Worth Study Wall Street Analysts Forecast Growth Several analysts have recently weighed in on the company. JPMorgan Chase & Co. upgraded American Express from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $328.00 to $400.00 in a report on Monday, July 13th. Loop Capital initiated coverage on American Express in a report on Thursday, May 21st. They set a “buy” rating and a $389.00 target price on the stock. Guggenheim assumed coverage on shares of American Express in a research report on Monday, July 13th. They issued a “buy” rating on the stock. Freedom Capital raised shares of American Express from a “hold” rating to a “strong-buy” rating in a report on Thursday, May 14th. Finally, Jefferies Financial Group upgraded shares of American Express from a “hold” rating to a “buy” rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $373.32. View Our Latest Analysis on AXP

American Express Stock Performance AXP opened at $331.99 on Friday. The firm has a market cap of $224.20 billion, a PE ratio of 20.15, a P/E/G ratio of 1.37 and a beta of 1.04. The company has a quick ratio of 1.54, a current ratio of 1.55 and a debt-to-equity ratio of 1.66. The business has a fifty day simple moving average of $342.98 and a 200-day simple moving average of $326.77. American Express Company has a fifty-two week low of $290.97 and a fifty-two week high of $387.49.

American Express (NYSE:AXP – Get Free Report) last issued its quarterly earnings results on Friday, July 24th. The payment services company reported $4.53 earnings per share for the quarter, topping analysts’ consensus estimates of $4.41 by $0.12. American Express had a return on equity of 34.12% and a net margin of 15.07%.The firm had revenue of $19.64 billion for the quarter, compared to analysts’ expectations of $19.70 billion. During the same quarter last year, the business posted $4.08 EPS. American Express’s revenue was up 10.0% on a year-over-year basis. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. As a group, equities analysts predict that American Express Company will post 17.67 EPS for the current fiscal year.

American Express Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Thursday, July 2nd were paid a $0.95 dividend. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. American Express’s dividend payout ratio (DPR) is currently 23.06%.

(Free Report)

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.

See Also Five stocks we like better than American Express 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding AXP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Express Company (NYSE:AXP – Free Report).

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By PYMNTS  |  August 13, 2026

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American Express is expanding the availability of virtual cards for businesses, as more companies use digital payments to manage expenses and reduce fraud.

The company said in a Thursday (Aug. 13) press release that U.S. corporate customers can now create, manage and use American Express Virtual Cards through its @ Work platform, which businesses use to manage their Corporate Card programs. The cards can be configured with spending limits, usage timeframes and certain country and merchant restrictions, and can be managed without moving between systems.

“Businesses want to simplify how they pay for things while maintaining control and visibility into spending across employee expenses, supplier payments and business travel,” said Eva Reda, executive vice president of global commercial services products at American Express. “Virtual cards can help solve many of these challenges.”

The expansion also reaches business travel. American Express is expanding its relationship with Conferma, a virtual payments technology provider, to let eligible Business Travel Account customers create and manage Amex Virtual Cards through Conferma’s mobile app. Travelers can use the cards for eligible purchases such as meals, retail purchases, car rentals and rideshares, complementing the Business Travel Account’s centralized billing for airfare and hotels.

The virtual cards let finance teams set rules around spending before a transaction occurs. Businesses can issue cards to employees, contractors, interns, guests and other authorized users who may not have a traditional corporate card. They can also use approval workflows, transaction data, digital receipts and reporting to reduce manual reconciliation.

The move comes as virtual cards become a control layer for corporate payments. Earlier this month, Amex shared that its commercial services spending grew 5% in the second quarter, while the company has argued that its closed-loop network gives it advantages in fraud protection and transaction data. The financial services company has been embedding spending rules, supplier verification and invoice data into B2B payments. Amex’s recent partnership with Bottomline similarly aims to improve supplier onboarding, payment visibility and invoice matching. The latest move extends that approach to corporate and travel spending, giving businesses a way to apply policy and collect transaction data at the point of payment.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

All in all, last quarter was another good one for credit card outfit American Express (AXP -0.38%). Total revenue grew 10% year over year to $19.6 billion, pushing per-share income up from $4.08 a year earlier to $4.53 for the three months ending in June. The company even raised its 2026 revenue guidance to 10% above last year's top line of just over $72.2 billion, up from the predicted range of 9% to 10% given with this year's first-quarter results.

Curiously, however, American Express didn't raise its full-year earnings expectations in step with its upward-revised revenue guidance. It still anticipates reporting per-share earnings of only $17.30 to $17.90 for 2026. What gives?

The company actually dropped a small hint during its second-quarter earnings conference call.

Not exactly a veiled secret If you were listening for it, CFO Christophe Le Caillec plainly connected the dots by commenting during the second-quarter earnings call, "As we increase investments in new customer acquisition and technology development, we are maintaining our full-year EPS guidance of $17.30-$17.90." Le Caillec added during the call that spending on marketing could be up 10% in the second half of 2026.

Image source: Getty Images.

CEO Steve Squeri also highlighted the planned acquisition of online restaurant reservation and management platform TheFork as a potential driver of long-term growth as an example of these intended investments. He added for good measure, "There is no shortage of technology investments or enhancements or refreshes that need to occur."

And for what it's worth, we're already seeing glimpses of this profit-crimping spending. Last quarter's card-member services costs grew 50% year over year to $1.95 billion, while outlays on data processing and equipment grew 13%, to over $800 million.

Not a reason to avoid American Express stock As a shareholder of any company, it can be a bit concerning to see that organization ramp up its spending plans so much that revenue growth isn't paired with comparable profit growth. American Express's investors certainly panicked on this news, sending AXP shares down more than 4% the very same day the news was announced.

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Just don't lose perspective on the matter. American Express has a fantastic long-term track record of producing meaningful growth from these sorts of investments. With the exception of pandemic-plagued 2020, not once in the past 10 years has Amex failed to grow its annualized top line. In fact, its revenue has more than doubled during this stretch. So have its profits, even if more erratically.

AXP Net Income (Quarterly) data by YCharts

So, don't sweat the seemingly disappointing guidance surprise too much. It's a short-term annoyance with a much longer-term payoff.

It's also possible that American Express's management team is just making sure it doesn't overpromise results it won't end up being unable to deliver. There's still a good chance it will outperform its own profit guidance, just as it's topped analysts' earnings estimates in nine of the past 10 quarters.

By PYMNTS  |  July 24, 2026

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Highlights

Gen Z is becoming American Express’ growth engine, with young customers driving faster spending growth and most new consumer account openings.

Dining is evolving into a loyalty platform, as Amex uses Resy, Tock and the proposed TheFork acquisition to connect reservations, benefits and payments.

Amex sees its closed-loop data as an AI advantage, giving it more context to verify customer intent, manage fraud and support agentic commerce.

American Express’ second-quarter earnings tell a spending story that stretches from restaurant tables to airport gates to corporate expense accounts, with artificial intelligence sitting somewhere in the middle.

Card spending rose 9% on an FX-adjusted basis in the second quarter, according to a Friday (July 24) earnings presentation. Travel and entertainment spending increased 10%, goods and services rose 9%, and consumer spending in the United States climbed 11%, its fastest growth since early 2018 excluding pandemic-distorted periods. Commercial spending, which has been considerably slower, accelerated to 5%.

The spending was broad-based across categories. Retail spending rose 13%, restaurant spending increased 10%, airlines were up 10%, and American Express travel bookings jumped 22%. Millennials and Generation Z remained the fastest-growing U.S. consumer cohorts and now account for the largest share of U.S. consumer spending on Amex cards.

CEO Stephen Squeri said during an analyst Q&A on a Friday conference call that the spending gains reflect more than new customer acquisition.

“Engagement has been really accelerated, and that’s driving a lot of the spending,” Squeri said, adding that “restaurant spend was up 10%, but when you look at Resy restaurant spend, it’s double that.”

The engagement is increasingly coming from young customers. Gen Z spending rose 40% year over year, compared with 14% for millennials, 10% for Generation X and 5% for baby boomers and older customers. Millennials and Gen Z together accounted for 38% of U.S. consumer-billed business. Meanwhile, 65% of new global consumer accounts came from those two generations.

The income story is more nuanced. Chief Financial Officer Christophe Le Caillec said during the call that young customers generally enter the Amex franchise with low income initially, but “we’re going to grow with them, and they’re going to grow with us.”

Restaurants Become More Than a Card Category Dining is also becoming a deliberate part of Amex’s strategy.

Restaurant spending is the company’s largest travel and entertainment category, and Amex is building infrastructure around that spending rather than simply collecting interchange when the check arrives. Its proposed acquisition of TheFork would add 50,000 restaurants across 11 European countries to a dining portfolio that already includes Resy and Tock.

Squeri said Amex is effectively creating smaller closed loops inside its larger payments network by connecting cardholders directly with restaurants. Amex cardholders also generate higher average tickets than non-cardholders. The platforms can additionally serve as acquisition channels by offering cardholders special access and benefits while remaining open to nonmembers.

The closed-loop argument becomes more consequential as commerce starts shifting toward AI agents.

Squeri said agentic commerce creates new questions around fraud, customer intent and AI hallucinations. Amex’s pitch is that it has information from both sides of a transaction.

“We know what the customer wanted to do, and we’ll also know what the merchant delivered,” he said during the call.

However, he cautioned against assuming agentic commerce is already mature.

“We’re sort of in the preseason,” Squeri said. “We’re not even … in the early innings.”

Amex is spending accordingly. Squeri said technology investment now includes agentic commerce initiatives that were not contemplated when the company established its original 2026 spending plans.

The business side is getting similar attention. Commercial billed business rose 5%, with U.S. small- to medium-sized businesses and large/global corporations growing at the same rate. Travel and entertainment spending among commercial customers rose 8%, twice the 4% increase in goods and services spending. Amex has also begun piloting a new expense management platform with middle-market customers, an area where management acknowledged competitive pressure from FinTech providers.

CFO Le Caillec said the stronger spending translated into 10% revenue growth, a rate that was below Wall Street’s expectations, and shares dipped 5% in early trading Friday. The company raised its full-year revenue growth forecast from a range of 9% to 10% to 10%.

American Express AXP stock is in focus this morning after the credit card company reported its fiscal Q2 earnings that told a familiar story of premium strength.

AMEX came in ahead of Street estimates with an 11% year-on-year increase in earnings per share (EPS) to $4.53, while the firm's overall revenue went up 10% in the recent quarter to $19.6 billion.

However, underneath the glittering headline figures lies an increasingly costly structural evolution, one that’s weighing rather significantly on American Express stock on Friday morning.

AMEX added 3 million new proprietary cards during Q2 – with over three-quarters signing up for high-margin, fee-based accounts.

A massive slice of those additions continues to be Gen Z and Millennial consumers.

Yet, as younger cardholders flock to the brand, their enthusiastic adoption of “premium benefits” is turning into a double-edged sword for the company's operational margins.

Note that American Express shares are currently down over 13% versus the start of this year (2026)

American Express’s aggressive push to court younger demographics through refreshed Platinum and Gold card offerings has yielded millions of tech-savvy, lifestyle-focused customers.

However, Gen Z and Millennial cardholders operate differently than legacy members; they actively maximize every credit, travel pass, and dining stipend attached to their accounts.

This drove total quarterly operating expenses up 12% year-over-year.

Customer engagement and variable reward costs surged as airport lounge visits, hotel credits, and lifestyle perks were claimed at record volumes.

The average card member spent $6,759 in the second quarter – up from $6,393 last year – showing high engagement.

However, fulfilling those lifestyle promises requires huge capital. AMEX has successfully hooked a new generation, but funding their premium lifestyle is proving significantly more expensive than anticipated.

Despite beating quarterly profit expectations, AMEX shares dropped more than 5% following the announcement as investors focused heavily on the 12% expense hike.

The read for investors was simple: in a market where financial firms are expected to tighten belts, American Express is actually “accelerating” expenditure to defend its turf against competitors like JPMorgan Chase and Capital One.

Sure, the net write-offs remained comfortably low in the second quarter at 2%, proving credit health remains pristine – but narrowing margins due to a 50% increase in “Card Member Services” costs is becoming harder to ignore.

Market participants are concerned that if younger consumers continue rinsing the perk allowances while broader macroeconomic spending cools, expense growth could persistently beat transaction volume gains.

The ultimate fallout from this costly acquisition strategy was felt in AMEX’s forward guidance.

Strong first-half momentum prompted management to raise its full-year revenue growth outlook to about 10%.

Yet, notably, executives refused to raise the profit target, leaving EPS outlook frozen at $17.30 to $17.90.

That said, Wall Street hasn’t thrown in the towel on AMEX stock, though. Heading into the earnings print, the consensus rating on American Express stood at Overweight with a bullish $378 average price target.

American Express enters Friday’s earnings report with options traders preparing for an almost $12 swing in its shares, but positioning offers little agreement over direction.

The split reflects unusually balanced fear of disappointment and hope for upside.

Contracts expiring on July 24 imply a move of about 3.5%, based on a snapshot taken when the stock traded near $341.89.

American Express stock NYSE:AXP later closed Thursday at $340.84, down 2.3%. The figure therefore represents the expected magnitude of the reaction, not a forecast that the shares will rise or fall.

The company is due to release results at about 7 am ET, followed by an earnings call at 8:30 am ET.

The implied move comes from the $342.50 at-the-money straddle.

The call traded near $6, while the corresponding put cost $5.97, producing a combined premium of $11.97 and an estimated range of roughly $329.92 to $353.86.

Activity elsewhere in the chain shows the same two-sided tension.

Nearly 1,000 puts traded at the $330 strike and more than 500 changed hands at $335, pointing to demand for downside protection.

Call volume exceeded 1,900 contracts at $350 and 2,200 at $352.50, suggesting traders were also positioning for a breakout.

That does not guarantee volatility buyers will profit.

If American Express stays inside the implied range, the earnings premium embedded in both calls and puts could collapse after the announcement.

Wall Street expects second-quarter earnings of about $4.40 a share and revenue near $19.69 billion.

Those figures provide the first test, but management’s outlook for spending, credit and costs is likely to drive the larger reaction.

Evercore ISI analyst John Pancari raised his price target to $380 from $345 while retaining an In Line rating.

TipRanks reported that Pancari sees “forward guidance” as the key focus while interest rates remain higher for longer.

American Express entered the quarter forecasting 2026 revenue growth of 9% to 10% and earnings of $17.30 to $17.90 a share.

A change to either range could push the stock beyond the options-implied band.

The company must also control expenses.

First-quarter costs rose as rewards, customer benefits and marketing investments increased, supporting engagement but potentially pressuring margins if revenue growth slows.

American Express’s premium cardholder base remains the strongest argument for an upside surprise.

First-quarter cardmember spending rose 9% on a currency-adjusted basis, while revenue increased 11% to $18.9 billion.

JPMorgan analyst Richard Shane upgraded the shares to Overweight and lifted his target to $400 from $328.

He views high-income customers as “relatively shielded” from the Middle East crisis and American Express as exposure to the “most insulated cohort in consumer finance.”

Investors will watch billed-business growth, travel and entertainment spending, card-fee income, customer acquisition and credit quality for evidence that this resilience is holding.

The valuation debate remains unresolved.

American Express carries a Moderate Buy consensus, but BTIG analyst Vincent Caintic retained a Sell rating despite lifting his target to $324 from $285.

His target remains below Thursday’s close, showing that stronger earnings do not automatically make the shares inexpensive.

Bottomline and American Express are partnering to integrate Paymode into American Express Buyer Initiated Payments (BIP) through a new feature called BIP Connect.BIP Connect gives eligible American Express customers access to Premium ACH vendors on Paymode, improving connectivity and digital payment adoption.New Amex Trendex research from American Express highlights buyer-supplier relationships are strained, and payment errors persist as a result of invoice inefficiencies. PORTSMOUTH, N.H., July 21, 2026 (GLOBE NEWSWIRE) -- Bottomline, a global leader in business payments, today announced a strategic partnership with American Express to deliver a more connected digital business payment experience. Through the partnership, Bottomline’s secure business payments network, Paymode, is now integrated into American Express Buyer Initiated Payments (BIP) through a new feature called BIP Connect, enabling eligible customers to pay Premium ACH vendors through Paymode. BIP enables buyers to initiate electronic payments to suppliers as an alternative to paper checks and ACH, leveraging American Express’ unique direct relationships with suppliers to help drive working capital flexibility on both sides of the transaction.

Payments automation may help address key gaps identified by surveyed financial decision-makers. Recent Amex Trendex research found that 67% of financial decision-makers surveyed agree that payment inefficiencies make it harder for their business to operate at its full potential. This complexity may stem from fragmented vendor networks that limit visibility and control, as well as from manual processes. Bottomline and American Express are helping to address these challenges by connecting eligible BIP customers with a broad network of authenticated, verified vendors across key industries, including manufacturing, healthcare, commercial real estate, and higher education.

The offering may help address the challenges faced by many financial decision-makers surveyed. For example, 90% of financial decision-makers surveyed report their business experienced payment errors in the last 12 months, and 65% say inefficiencies in their invoice and payment experiences make it more challenging to maintain strong buyer-supplier relationships. Through the secure Paymode network, businesses gain access to participating vendors that are enrolled, authenticated, and accept digital payments, helping create more predictable and seamless payment interactions between payers and vendors.

Expanding and Modernizing B2B Payments
Eligible businesses can initiate payments to vendors using their existing American Express BIP account, while vendors receive funds via Premium ACH through Paymode. This supports the continued shift to digital payments, helps improve working capital flexibility for buyers, and gives vendors a more predictable, data-informed payment experience.

“Partnering with American Express is an important step forward in helping businesses modernize how they manage payments,” said Craig Saks, CEO, Bottomline. “By integrating Paymode into BIP, we’re giving buyers access to greater control, enhanced security, and a simpler way to manage payables and receivables, while making it easier for vendors to reconcile payments and maintain visibility into their cash flow.”

The integration provides eligible American Express BIP customers with secure, authenticated payments backed by Paymode’s multi-layer fraud controls, a consistent user experience, and seamless access to Paymode’s vendor network.

“Businesses continue to look for new ways to modernize supplier payments without adding complexity,” said Widad Chaoui, Senior Vice President and General Manager, Corporate and B2B Products, American Express. “Our partnership with Bottomline allows BIP customers to get expanded access to Bottomline’s extensive network of B2B suppliers, while also providing working capital flexibility and control.”

About Bottomline
Bottomline helps businesses transform the way they pay and get paid. A global leader in business payments and cash management, Bottomline’s secure, comprehensive solutions modernize payments for businesses and financial institutions globally. With over 35 years of experience, moving more than $16 trillion in payments annually, Bottomline is committed to driving impactful results for customers by reimagining business payments and delivering solutions that add to the bottom line. Bottomline is a portfolio company of Thoma Bravo, one of the largest software private equity firms in the world, with more than $172 billion in assets under management. For more information, visit www.bottomline.com.

Bottomline, the Bottomline logo, Paymode, and

BEA are trademarks or registered trademarks of Bottomline Technologies, Inc.

About American Express
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.

Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.

For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.

Amex Trendex Research Methodology

American Express commissioned a 7-minute online survey among n=521 U.S. Business Owners and/or Financial Decision-Makers (DMs) who manage or oversee specific business functions (including invoice-based payments; accounts payable/receivable; accounts reconciliation; business spend; cash flow; and working capital). The survey included n=100 buyers, n=164 suppliers and n=257 respondents who are both buyers and suppliers. Respondents’ organizations were either small (<100 employees, n=134), mid-sized (100-999 employees, n=200) or large (1,000+ employees, n=187). The survey was fielded between June 10-17, 2026.

At the total sample, the margin of error is +/-4 percentage points (ppts) at the 95% confidence interval. By role, the margins of error for the following are: Buyers, +/- 10 ppts; Suppliers, +/- 8 ppts; Both a Buyer and Supplier, +/-6 ppts.

Media Contact
Heather Pavliga
[email protected]

American Express (AXP +0.90%) recently raised the price of its exclusive Platinum card from $695 to $895. It's the first increase since 2021, when it was raised from $550 to $695.

The company offers a long list of perks with the "refresh," worth $3,500 if used in full, plus the prestige of owning a Platinum card and miles for every dollar spent. But the major perk is for Amex, since card fees account for a major portion of total revenue and provide a recurring source of income. American Express will report second-quarter earnings on July 24. Here's why card fees matter.

The most prestigious card American Express pioneered the credit card fee model, which has evolved into a subscription model of sorts, with members paying an annual fee for the privilege of using an Amex card. Not all cards come with fees, but the company targets affluent spenders who crave prestige and perks. Seventy-three percent of the 3.1 million new cards in the 2026 first quarter were fee-based.

The highest-income earners account for the most spending, and American Express aims to capture this cadre of members by offering ever-expanding rewards and exclusivity that can't be matched. According to data from Moody's, the top 10% of earners accounted for 49.2% of spending in the 2025 second quarter, the highest percentage since it started compiling the data in 1989. This is who Amex is after.

Image source: Getty Images.

However, it's not just for the spending. The fees themselves are a major part of the model, since they provide a stable source of revenue independent of spending. As inflation stays strong and interest rates stay steady, fee income matters even more.

Since there aren't many costs associated with the fee, it goes straight to the bottom line, expanding net income. That's also important if the company needs to increase its loss provisions in a challenging economy.

What it's going to look like on the income statement In the 2026 first quarter -- the first quarter to include the higher annual fee -- revenue increased 11% year over year, and earnings per share (EPS) rose 18%. Card fees increased 18% and accounted for more than 14% of revenue. U.S. consumer Platinum spending accelerated by six percentage points, and retention rates remained stable near 100% despite the fee hike.

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These members are highly engaged with the rewards platform. In the first quarter, for example, spending on Resy restaurant spend, which is Amex's restaurant app, increased 20% year over year, double the 10% increase for U.S. consumer spend, and lodging spend increased 50%, whereas U.S. consumer spend was up 5%. In other words, the card and its rewards mean a lot to users, and the fee income is likely to continue adding to the total revenue.

The 29% fee hike for the Platinum card should add meaningful growth to the total this year, and the durable subscription model is an underrated feature that makes American Express stock compelling.

Key Takeaways American Express launched new AI tools to support secure AI-powered payments and developer integrations.AXP uses its closed-loop network to improve approvals, verify intent and strengthen fraud protection.AXP reported 11% revenue growth, reaffirmed 2026 EPS guidance despite higher technology investments. Artificial intelligence is becoming a key part of American Express Company’s (AXP - Free Report) long-term strategy. During its latest earnings call, the company highlighted several AI initiatives aimed at preparing its payments business for the next phase of digital commerce. AmEx also plans to increase technology investments, signaling that AI will remain a major area of focus.

AmEx recently launched the Amex Agentic Commerce Experiences Developer Kit, enabling developers to integrate its cards into AI-powered transactions. It also introduced Amex Agent Purchase Protection, an industry-first feature that protects purchases made by registered AI agents. In addition, the company is building proprietary AI features on its own platforms while partnering with leading AI companies to make its premium membership benefits discoverable and actionable across their platforms.

The company is using its closed-loop payments platform to support these initiatives. Access to end-to-end transaction data helps verify purchase intent, improve payment approvals and strengthen fraud protection and security for both card members and merchants. These capabilities could become increasingly important as AI handles a larger share of digital transactions.

AmEx delivered strong first-quarter results, supporting its investment in future growth. Revenues increased 11% year over year to $18.9 billion, and earnings per share (EPS) rose 18% to $4.28. Despite raising technology investments, the company reaffirmed its full-year 2026 EPS guidance of $17.30-$17.90. As AI continues to reshape digital commerce, these investments could strengthen customer engagement, deepen merchant relationships and support long-term growth.

How Are Competitors Faring?American Express faces intense competition in the payments space from Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) , both of which are expanding their AI capabilities to strengthen payment security and support the next phase of digital commerce.

Mastercard recently expanded its Agent Pay platform and introduced Verifiable Intent to support secure AI-driven transactions. These initiatives reflect Mastercard's focus on building trust and security as agentic commerce evolves.

Visa is expanding its AI capabilities to strengthen digital payments and fraud prevention. It recently launched the Visa Threat Intelligence Platform (VTIP) to identify cyber threats before they become payment fraud, reflecting its continued focus on AI-driven payment security.

AXP’s Price Performance, Valuation & EstimatesShares of AXP have risen 8.6% over the past year against the industry’s decline of 26.6%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXP trades at a forward price-to-earnings ratio of 18.28X, up from the industry average of 9.87X. AXP carries a Value Score of C.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AXP’s 2026 earnings is pegged at $17.67 per share, implying a 14.9% jump from the year-ago period’s level.

Image Source: Zacks Investment Research

AXP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

watch now

An airport lounge — without the security screening or boarding pass.

Credit card companies American Express and Chase are increasingly waging their luxury lounge wars outside the airport. From an air-conditioned retreat in the middle of the desert at Coachella to an exclusive athlete meet-and-greet at the Paris Olympics, these companies are investing big in premium hospitality spaces to win over affluent cardholders. 

"It's very expensive, but I think what's happening is that the issuers are finding that this is a premium differentiator," said Donald Fandetti, managing director of consumer finance equity research at Wells Fargo. "It's all about providing these services and experiences that make it worth it to the cardholder to pay those annual fees."

American Express' Platinum and Chase's Sapphire Reserve cards — the leading premium cards in the market — both upped their annual fees last year. The Amex Platinum now carries a fee of $895 a year, and the Sapphire Reserve has a fee of $795. 

The perks associated with these cards, like dining credits, hotel upgrades and digital partnerships, help offset the cost. It's all an effort to capture and retain the highest spenders. Amex and Chase have jockeyed for years to be the preferred card for the American elite.

More and more, access is making the difference.

"Credit cards [with] higher fees, it's going to send a certain signal. But what we really need to be making sure is that we're understanding the psychology of exclusivity" said Dan Bennett, head of behavioral science at Ogilvy Consulting. "It's easy to say, 'I have lots of resources.' It's harder to say, 'I have enough social capital to earn my way into spaces.'"

Beyond the airportSome of the events that American Express Platinum cardholders had lounge access to in 2025 include the US Open tennis tournament; Stagecoach music festival in California; and multiple Formula 1 races worldwide.

Meanwhile, lounges for Chase Sapphire Reserve customers were present at Chicago music festival Lollapalooza; Miami Art Week; Sundance Film Festival; and the PGA Tour.

While some lounges and brand activations are open to all customers or even all attendees at an event, many of these spaces are exclusively reserved for premium cardholders. 

"We find this customer to be very engaged," said Laura Picciano, general manager of Chase Sapphire. "Once you get their business, there's a lot of loyalty there. And so they're an important segment to continue to nurture."

While temporary credit card lounges are popping up at festivals and sporting events, they have also become popular, permanent fixtures inside stadiums and arenas.

American Express has partnerships with more than 20 venues around the world. Eight of them currently have lounges, including Hard Rock Stadium in Miami and the O2 arena in London, with a new location set to open in New York City's Barclays Center this year.

Bess Spaeth, executive vice president of global brand management and experiences at American Express, said factors like footprint, ability to provide food and beverage and viewing capabilities are all considerations in the decision for which venues get lounges.

"It's a real puzzle that we try to look at all the pieces and think about it holistically in terms of how we can best serve our members in those spaces," said Spaeth.

Chase has built out lounges at Madison Square Garden and the Chicago Theatre that are open to all of its customers, though Madison Square Garden has a dedicated space for Sapphire Reserve cardholders. 

"Lounges are really interesting because economists would think of those as more of a network good," said Chenzi Xu, assistant professor of economics at the University of California, Berkeley. "These lounges become particularly valuable when there's a set of them that you can access in a variety of different places ... not just in an airport perhaps, but at another exclusive event."

Attracting high spenders Chase and American Express are courting wealthy customers who are not only willing to pay the rising annual fees but also rack up higher balances on their cards.

Those with a credit score of 720 or above, which is typically required to get approved for a Sapphire Reserve or Platinum card, spend more than double the average of those within a score between 660 and 719, according to data from the Federal Reserve Bank of Philadelphia.

American Express said earlier this year that it shifted marketing dollars away from no-fee cards to its more premium offerings as it looks to attract more affluent cardholders.

American Express credit card fees totaled nearly $10 billion in 2025, up about 18% since 2024. Chase doesn't break out credit card fee revenue.

"Chase is working really hard to compete with [American Express]," said Xu. "They're just making the benefits of having these cards better and better for the consumer. That competition is good for the consumer, but it's a competition that's only happening at the high end, and at the low end you don't see nearly as much entry and you don't see as much competition."

That upper echelon is key for the credit companies. A 2025 Mastercard report found that affluent consumers, defined as households with an income of $200,000 or more and at least $250,000 in investable assets, spend 4.3 times the general population on discretionary purchases.

According to data from J.D. Power, cardholders with an annual fee of more than $500 spent an average of $3,200 per month from May 2025 to June 2026, up about 17% from the prior 12-month period. 

Meanwhile, those with cards that have a fee of less than $500 spent an average of $1,144 per month, up about 6% from the year earlier.

It's yet another signal of what economists commonly call a "K-shaped economy" in which high earners speed freely, while lower-income consumers pull back in some areas. It's also putting even greater importance on the higher spenders during a period of economic uncertainty.

"The allure of the premium segment to these card issuers is that you have heavy spenders," said Fandetti. "This business takes a lot of scale. So you have to have a very big revenue base to sort of fund all these lounges and rewards and benefits."

Building on brandsLounges are just one way that the credit card companies leverage their sponsorships with these venues. 

Chase's head of dining and lifestyle, Paul Needham, said it also offers things like gift bags, premium viewing areas, special access to merchandise and money off of food through its partnerships.

Chase and American Express often offer discounts or statement credits, too, for purchases at their respective sponsored venues as well as at certain events like music festivals.

"I think when you take that broader picture on the sports and entertainment venues, what we're really trying to do is both elevate these moments for our customers, but also reach our customers in places and contexts where we know they're so passionate and so excited to be there," said Needham.

Chase Sapphire Reserve cardholders get access to dinner events hosted on FIFA World Cup pitches in New Jersey and California. Meanwhile, Marriott Bonvoy partnered with American Express in April to recreate New York City's iconic Rao's restaurant inside one of its hotels for a cardholder dinner event. Marriott has long partnered with both American Express and Chase for its co-branded credit cards.

This category of cards, which also includes co-branded offerings from Delta Air Lines and Hilton, accounted for about a quarter of American Express cardmember spending in 2025, according to an Amex report.

Bennett of Ogilvy Consulting said one of the key considerations for credit card companies to be in some of these physical spaces is whether they can play an authentic role at the event in question. He said American Express at Coachella is a good example, because it provides a space to cool off in the middle of the desert heat.

"You can't just set up these kind of corporate fortresses exactly the same in each place. That's not going to cut it. What is going to cut it is really understanding the needs of the customer at each of these places," said Bennett.

Spaeth says parts of the American Express strategy has been leaning into fandoms, ranging from collaborations with music artists like Harry Styles and Olivia Rodrigo to the NFL and Formula 1.

American Express' partnership with Formula 1 kicked off in 2023 and marked its first new sports sponsorship in more than a decade. A year later, it further expanded the deal and started rolling out new fan perks like trackside lounges. 

"Our hope is that you engage with these moments, deepen the emotional connection that you have with American Express and that really raises the American Express card to the very tippy top of your wallet," said Spaeth.

Key Takeaways American Express partnered with Mercantile and the ABA to launch a business card for lawyers.The card offers flexible payment options, business rewards and access to AmEx benefits.AXP's Agile Partner Platform helps expand industry-specific card programs on its network. American Express Company (AXP - Free Report) is expanding its commercial payments business through another targeted partnership. Together with Mercantile and the American Bar Association (“ABA”), AmEx has introduced the ABA American Express Business Card for solo practitioners and small law firms. Issued by Celtic Bank and operating on the American Express network, the card combines flexible payment options with business-focused rewards and access to AmEx's suite of business benefits.

The offering is built around the everyday needs of legal professionals. Cardholders can earn up to 5% cash back on eligible ABA purchases (capped at $2,000 annually) and 2% cash back on everyday spending, helping them better manage expenses while building business credit. Beyond the product itself, the partnership expands AmEx's presence in a specialized professional segment and further strengthens its commercial card business.

The collaboration also showcases AmEx's Agile Partner Platform (“APP”), which enables issuers and fintech partners to launch industry-specific card programs on the AmEx network. That approach allows AmEx to broaden its commercial payments franchise with tailored solutions while extending the reach of its payment network.

The partnership is unlikely to materially affect near-term earnings. Even so, it aligns well with AmEx's long-term strategy of growing its premium commercial card business. In the first quarter of 2026, net card fees increased 18% year over year, primarily driven by growth in premium card portfolios. By capturing specialized customer segments like the legal profession, AmEx continues to deepen customer relationships and strengthen its commercial payments franchise, an important driver of long-term growth.

How Are Competitors Faring?American Express faces intense competition in the commercial payments space from Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) , both of which are expanding their presence among small and midsized businesses through strategic partnerships and tailored payment solutions.

Mastercard is pursuing a similar strategy by working with partners to broaden its small-business card portfolio. Mastercard’s collaboration with Amazon and U.S. Bank introduced business credit cards that combine rewards, flexible financing options and expense management features for SMB customers.

Visa is also stepping up its focus on the SMB segment. Through initiatives such as Visa & Main and collaborations with fintech companies, Visa is broadening access to digital payment solutions, commercial card products and business financing tools for smaller enterprises.

AXP’s Price Performance, Valuation & EstimatesShares of AXP have risen 10% over the past year against the industry’s decline of 22.4%.

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From a valuation standpoint, AXP trades at a forward price-to-earnings ratio of 18.18X, up from the industry average of 9.92X. AXP carries a Value Score of C.

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The Zacks Consensus Estimate for AXP’s 2026 earnings is pegged at $17.64 per share, implying a 14.69% jump from the year-ago period’s level.

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AXP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Mastercard posted 16% revenue growth in Q1 2026; value-added services now contribute nearly 41% of revenues.American Express grew billed business 10% and added over 70% of new accounts through fee-based products.Mastercard's average analyst price target implies 28.7% upside versus 6.3% for American Express. The global payments industry continues to benefit from the ongoing migration from cash to electronic transactions, supported by rising card usage, expanding e-commerce activity and growing demand for digital payment solutions worldwide. As consumers and businesses increasingly embrace digital commerce, investors remain focused on companies that can sustain transaction growth while adapting to changing payment trends.

Mastercard Incorporated (MA - Free Report) and American Express Company (AXP - Free Report) are two of the most prominent names in the payments space, making them a natural comparison for investors seeking exposure to this long-term trend. While both benefit from higher payment volumes and global spending activity, their business models differ significantly. MA primarily operates a payment network, whereas AXP combines network services with card issuance and lending, resulting in distinct growth drivers, revenue mixes and risk profiles.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which stock offers greater upside right now.

The Case for MastercardMastercard, with a market cap of $435.6 billion, generates most of its revenues from payment processing and network services rather than lending activities. This network-centric model allows the company to benefit from rising payment volumes and cross-border transactions while maintaining relatively limited credit exposure. Growth is increasingly supported by value-added services, real-time payments and commercial payment solutions, which broaden revenue sources beyond traditional card spending.

In the first quarter of 2026, the company’s net revenues rose 16% year over year, along with 12% growth in payment network net revenues. It delivered 22.4% growth in value-added services and solutions revenues in the first quarter, supported by demand for cybersecurity, fraud prevention, analytics and customer engagement solutions, and now contributes to nearly 41% of the company’s net revenues. It beat earnings estimates in each of the past four quarters, with an average surprise of 5.5%.

Mastercard’s expanding network continues to create opportunities for additional revenue streams. Switched transactions now account for more than 70% of transaction volume, up from about 60% in 2020, generating richer data that supports the growth of higher-margin services and strengthens customer relationships.

The company is also positioning itself for emerging payment technologies through investments in agentic commerce and digital assets. Partnerships with OpenAI and other technology firms, the rollout of Verifiable Intent and the announced BVNK acquisition strengthen its ability to facilitate secure transactions across both traditional and digital payment ecosystems.

MA balances investments in innovation with shareholder returns through dividends and buybacks, supporting sustainable long-term growth despite regulatory and competitive pressures. In first-quarter 2026, it repurchased $4 billion of stock and bought an additional $1.7 billion through April 27, 2026, while paying $777 million in dividends for the quarter. The company maintains a solid capital position with $7.9 billion in cash, while short-term debt amounted to $1.7 billion as of March 31, 2026. Its return on capital of 62.16X is significantly higher than AXP’s 12.35X and the industry’s 28.17X.

The Case for American ExpressUnlike Mastercard, American Express, with a market cap of $232.4 billion, operates an integrated model that combines payment network services with card issuance and lending. It continues to benefit from strong spending activity among affluent consumers and younger cardholders. In the first quarter of 2026, billed business increased 10% year over year, while more than 70% of newly acquired accounts came from fee-based products. These trends support both spending growth and recurring fee revenues.

The company continues to strengthen its premium value proposition through travel, dining, entertainment and sports-focused offerings. Recent initiatives include a global NFL partnership, expanded airport lounge investments and the planned acquisition of TheFork from Tripadvisor, which would enhance American Express' dining ecosystem and deepen engagement with card members across Europe. Continued additions to its hotel portfolio further support customer loyalty and spending activity across its premium card base. In the first quarter of 2026, total revenues (net of interest expenses) increased 11% year over year, while total transactions rose 10%. The company beat earnings in three of the past four quarters and missed once, with an average surprise of 4%.

Commercial payments represent another key growth avenue. AXP outlined plans for eight new or enhanced commercial products and capabilities, including cash-back offerings and expense-management tools. These initiatives broaden the company's presence across small-business, middle-market and corporate customers.

Artificial intelligence is becoming an increasingly important part of the growth strategy. The launch of the ACE Developer Kit and Agent Purchase Protection extends AXP's presence into AI-powered commerce, while ongoing investments in technology aim to enhance security, customer experiences and operational efficiency across its closed-loop network.

As of March 31, 2026, the company had $53.8 billion in cash and cash equivalents against just $1.7 billion in short-term borrowings. AXP returned $2.3 billion to its shareholders in the first quarter of 2026 through dividends and buybacks. In March 2026, it raised its quarterly dividend by 16% to 95 cents per share. Its dividend yield of 1.1% is higher than MA’s 0.7%.

Price Performance ComparisonOver the past six months, shares of AXP have shed less value than those of MA. Meanwhile, the S&P 500 has increased 8.9% during this time.

Price Performance – MA, AXP & S&P 500
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How Do the Estimates Compare for MA & AXP?The Zacks Consensus Estimate favors MA at this stage. The consensus estimate for MA’s 2026 earnings indicates a 15.2% increase from a year ago. Meanwhile, the consensus estimate for revenues suggests 12.8% growth. On the other hand, the consensus estimate for AXP’s 2026 earnings indicates 14.4% growth from a year ago, while the same for revenues suggests a 9.7% rise.

Valuation: MA vs. AXPValuation-wise, Mastercard trades at a premium forward price-to-earnings multiple relative to AXP, reflecting its capital-light structure and lower risk profile. MA currently trades at a forward P/E of 23.46X, higher than AXP’s 18.15X. The valuation gap underscores the market’s preference for Mastercard’s stability and diversified growth drivers.

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Price TargetMA currently trades below its average analyst price target of $645.19, implying a 28.7% potential upside from current levels. AXP also trades below its average analyst price target of $362.35, implying a 6.3% potential upside from current levels.

ConclusionBoth Mastercard and American Express are well-positioned to benefit from the continued expansion of digital payments, supported by strong brands, global reach and healthy spending trends. AXP offers exposure to affluent consumers, growing fee-based products and an integrated payments-and-lending model, while MA benefits from its network-focused structure, broad acceptance footprint and expanding portfolio of value-added services.

Despite trading at a premium valuation, Mastercard’s asset-light business model, faster growth profile and expanding revenue streams suggest greater upside potential than American Express at current levels, even though both companies currently carry a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.