American Express uvedla, že Gen Z je jejím růstovým motorem: jejich útraty vzrostly meziročně o 40 % a tvořily 65 % nových globálních spotřebitelských účtů. Společnost zároveň zvýšila celoroční výhled růstu tržeb z 9 % až 10 % na 10 %.
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 Company (AXP) Q2 2026 Earnings Call July 24, 2026 8:30 AM EDT
Company Participants
Kartik Ramachandran - Senior VP & Head of Investor Relations
Stephen Squeri - Chairman & CEO
Christophe Le Caillec - Chief Financial Officer
Conference Call Participants
Sanjay Sakhrani - Keefe, Bruyette, & Woods, Inc., Research Division
Ryan Nash - Goldman Sachs Group, Inc., Research Division
Donald Fandetti - Wells Fargo Securities, LLC, Research Division
Craig Maurer - Financial Technology Partners LP
Richard Shane - JPMorgan Chase & Co, Research Division
Mark DeVries - Deutsche Bank AG, Research Division
Terry Ma - Barclays Bank PLC, Research Division
Robert Wildhack - Autonomous Research US LP
Darrin Peller - Wolfe Research, LLC
Bill Carcache - Piper Sandler & Co., Research Division
Mihir Bhatia - BofA Securities, Research Division
Presentation
Operator
Welcome to the American Express Q2 2026 Earnings Call. [Operator Instructions] As a reminder, today's call is being recorded.
I will now turn the call over to Kartik Ramachandran, Head of Investor Relations. Please go ahead.
Kartik Ramachandran
Senior VP & Head of Investor Relations
Thank you, Dana, and thank you all for joining today's call. Today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and in our reports on file with the SEC.
Today's discussion also contains non-GAAP financial measures. Comparable GAAP financial measures are included in this quarter's earnings materials as well as the prior period earnings materials discussed today. All of these are posted on our website at ir.americanexpress.com. We will begin today with Stephen Squeri, Chairman and CEO; followed by Christophe Le Caillec, Chief Financial Officer. After their remarks, we'll move to Q&A.
American Express ve 2. čtvrtletí zvýšil EPS o 11 % na 4,53 USD a tržby o 10 % na 19,6 miliardy USD, ale akcie po zveřejnění výsledků klesly o více než 5 %.
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 (AXP - Free Report) came out with quarterly earnings of $4.53 per share, beating the Zacks Consensus Estimate of $4.41 per share. This compares to earnings of $4.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.72%. A quarter ago, it was expected that this credit card issuer and global payments company would post earnings of $4.03 per share when it actually produced earnings of $4.28, delivering a surprise of +6.2%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
American Express, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $19.64 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $17.86 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
American Express shares have lost about 7.9% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for American Express?While American Express has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for American Express was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.64 on $20.07 billion in revenues for the coming quarter and $17.67 on $79.3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Qfin Holdings Inc. - Sponsored ADR (QFIN - Free Report) , has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -44.4%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level.
Qfin Holdings Inc. - Sponsored ADR's revenues are expected to be $520.01 million, down 28.6% from the year-ago quarter.
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.
American Express čeká za 2. čtvrtletí 2026 růst zisku na akcii o 7,8 % a tržeb o 9,9 % díky vyšším síťovým objemům a čistému úrokovému výnosu. Firma má také pozitivní Earnings ESP +0,61 %.
Key Takeaways American Express reports Q2 results on July 24, with estimates suggesting 7.8% EPS and 9.9% revenue growth.AXP's network volumes, cards-in-force and net interest income are expected to support quarterly growth.American Express has a positive Earnings ESP, though higher customer engagement costs may weigh on margins. American Express Company (AXP - Free Report) is set to report second-quarter 2026 results on July 24, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.40 per share, and the same for revenues is pinned at $19.62 billion.
The second-quarter earnings estimate witnessed two upward revisions over the past 60 days against two downward movements. The bottom-line prediction indicates a year-over-year increase of 7.8%. The consensus estimate for quarterly revenues implies year-over-year growth of 9.9%.
Image Source: Zacks Investment Research
For the full-year 2026, the Zacks Consensus Estimate for AmEx’s revenues is pegged at $79.28 billion, implying a rise of 9.8% year over year. Meanwhile, the consensus mark for full-year EPS is pegged at $17.67, implying growth of 14.9% on a year-over-year basis.
AmExbeat the consensus estimate in three of the last four quarters and missed once, with the average surprise being 4%.
Q2 Earnings Whispers for AmExOur proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
AXP has an Earnings ESP of +0.61% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What is Shaping AmEx’s Q2 Results?AmEx is expected to see a rise in network volumes during the second quarter, likely attributable to the resilient consumer spending of its premium customer base, which is less impacted by economic volatilities. The Zacks Consensus Estimate for second-quarter total network volumes indicates 10.1% year-over-year growth from $472 billion.
Discount revenues, a key source of AmEx’s top line, are expected to have benefited from rising network volumes. The consensus mark for second-quarter Discount revenues indicates 7.7% year-over-year growth. Billed businesses in U.S. Consumer Services and Commercial Services are expected to witness growth of 11.8% and 3.5% year over year, respectively. The Zacks Consensus Estimate for pre-tax income from Commercial Services indicates a 7.5% jump from a year ago.
Cards-in-force are expected to increase in the quarter on the back of expanding product offerings and stronger market penetration.The consensus projection for second-quarter total cards-in-force indicates 4.7% year-over-year growth. The estimate for Average fee per card also implies a 14.3% year-over-year increase.
AmEx’s interest income, another major revenue contributor, is expected to rise on higher loan receivables. The estimate for AXP’s net interest income implies an upside of 11.3% from the year-ago reported figure.
The above factors are expected to support year-over-year growth in the second quarter and set the stage for a potential earnings beat. However, higher customer engagement and operating costs could limit the upside. Higher variable customer engagement costs resulting from increased spending by Card Members and greater use of travel and lifestyle benefits are likely to have partially impacted margin growth.
Other Stocks That Warrant a LookHere are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
Credicorp Ltd. (BAP - Free Report) has an Earnings ESP of +2.31% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Credicorp’s bottom line for the to-be-reported quarter is pegged at $7.20 per share, which indicates 15.4% year-over-year growth. The consensus estimate for BAP’s revenues is pegged at $1.72 billion, a 9.3% increase from a year ago.
Brookfield Asset Management Ltd. (BAM - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Brookfield Asset Management’s bottom line for the to-be-reported quarter is pegged at 44 cents per share, which indicates 15.8% year-over-year growth. The consensus estimate for BAM’s revenues is pegged at $1.49 billion, a 15.6% increase from a year ago.
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Virtu Financial’s bottom line for the to-be-reported quarter is pegged at $1.67 per share, suggesting growth of 9.2% from a year ago. The consensus estimate for VIRT’s revenues is pegged at $639.48 million, a 12.6% year-over-year jump.
Bottomline a American Express propojí Paymode s Buyer Initiated Payments prostřednictvím nové funkce BIP Connect. Cílem je rozšířit digitální B2B platby a zpřístupnit ověřené dodavatele v síti Paymode.
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.
STOCKHOLM, SE / ACCESS Newswire / July 21, 2026 / Keo Capital (STO:MAHA-A) - KEO Capital AB (publ) ("KEO Capital" or the "Company") (Nasdaq Stockholm:KEOC) is pleased to announce the renewal of its longstanding strategic partnership with American Express Limited ("AMEX"), reinforcing its commitment to delivering innovative payment solutions in Mexico
The agreement includes the U.S. Dollar and the Mexican Peso as authorized currencies for all commercial Purchasing Cards issued under the program in Mexico, enabling greater flexibility for transactions and international commerce.
"This renewed partnership with American Express reinforces the innovation and the strength of our platform and the trust we have built over the years in Mexico. We are excited to continue growing alongside one of the world's leading financial services brands, and we look forward to continuing to explore new opportunities together," commented Roberto Marchiori, CEO of KEO Capital.
KEO Capital AB remains focused on leveraging this partnership to drive innovation in B2B payments, expand its product offerings, and deliver value to its cardmembers and commercial partners.
"We are proud to strengthen our longstanding partnership with KEO Capital in Mexico. Extending our collaboration reflects our shared commitment to innovation, advancing B2B payment solutions, and creating new opportunities for businesses across the market", said Mario Luna, Bank Partnerships Vice President of American Express for Mexico, Central America and the Caribbean.
For more information, please contact:
Roberto Marchiori, CEO & CFO | Jakob Sintring, Head of IR
Phone: +46 8 611 05 11, E-mail: [email protected]
Jorge Guevara, Vice President, Corporate Affairs and Communications Latin America and the Caribbean, American Express, E-mail: [email protected]
About KEO Capital
KEO Capital AB (publ) is a listed technology-driven financial solutions provider focused on improving liquidity, security, transparency, and efficiency in B2B supply chain financing and corporate travel and expense management. KEO Capital operates a unified digital ecosystem that enables buyers and suppliers to interact through complementary solutions designed to address the full spectrum of corporate payables. In addition, KEO Capital holds a 24 percent indirect equity stake in the Venezuelan oil company PetroUrdaneta and has entered into a binding agreement to increase its indirect interest to 40 percent. The shares are listed on Nasdaq Stockholm (KEOC). For more information, please visit the Company's website at www.keocapital.com.
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.
Attachments
KEO Capital Renews American Express Licensing Agreement in Mexico
American Express zvýšil roční poplatek za kartu Platinum z 695 USD na 895 USD. V 1. čtvrtletí poplatky z karet vzrostly o 18 % a tvořily přes 14 % tržeb.
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.
American Express v 1. čtvrtletí zvýšil tržby o 11 % a poplatky za karty o 18 %, což je pro další výsledky důležitější než růst útrat. Wall Street čeká za 2. čtvrtletí EPS 4,40 USD.
American Express (AXP +1.11%) stock has been sliding this year as the market continues to worry about interest rates, inflation, oil prices, and how they're going to impact the economy. The Warren Buffett favorite, though, continues to demonstrate growth and momentum. Are the worries unfounded?
Here's why card-fee growth matters more than spending growth right now, and what to expect when the company reports second-quarter earnings on July 24.
Image source: American Express.
The inflation-proof model American Express isn't the largest credit card network in the world, but it targets the affluent, who tend to spend more. It has a fee-based model for most of its cards that attracts a higher-income population, and even though it only has 155.9 million cards in force, its revenue is actually much higher than that of Visa (V +0.27%), which services about 5 billion cards worldwide.
Data by YCharts.
This model works well and provides resilience in challenging economic environments because it has a recurring revenue stream that flows directly to the bottom line. Whether members shop more or less, they still pay the annual fee. There have been times when even its higher spenders have been under pressure, and the fee-based model has provided protection during those periods.
So far, business has been robust despite the challenging macroeconomy. In the 2026 first quarter, revenue increased 11% year over year, while card fees, which accounted for 14.5% of the total, increased 18%. Billed business was up 10%. Earnings per share (EPS) were up 18% as well to $4.28, and Wall Street is looking for $4.40 in EPS for the second quarter, a 7.8% increase year over year.
The future growth engine Another feature that plays into this is its successful pivot targeting younger shoppers, who are buying into the long-term model. Millennials accounted for 30% of the total in the first quarter but increased 13%, while Gen-Z cardmembers accounted for 6% of the total but grew 38%. That's in contrast with Gen-X members, who accounted for 36% and grew 8%. These shoppers should provide years of growth as they engage with the platform, pay annual fees, and spend.
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American Express, which is looking a lot more like a subscription business than a volume play, can navigate challenges more smoothly than a company like Visa, which simply takes a small cut of every swipe. In Visa's case, fewer swipes mean less revenue. In Amex's case, more swipes sweeten the deal, but it's still coming out ahead.
It's also a lot cheaper than Visa, trading at 21 times trailing-12-month sales vs. 31 for Visa. That likely figures into why Buffett likes it so much more, and it could be undervalued as a subscription-based model at this price.
American Express spustila nové AI nástroje pro bezpečné platby a integrace vývojářů. Tržby vzrostly meziročně o 11 % na 18,9 miliardy USD a firma potvrdila výhled EPS pro rok 2026 na 17,30 až 17,90 USD na akcii.
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.
American Express v poslední seanci klesl o 3,77 % na 336,39 USD, ale za poslední měsíc přidal 9,8 %. Trh čeká výsledky 24. července 2026; zisk na akcii má být 4,39 USD a tržby 19,61 mld. USD.
In the latest close session, American Express (AXP - Free Report) was down 3.77% at $336.39. The stock's change was less than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, added 0.2%.
Shares of the credit card issuer and global payments company witnessed a gain of 9.8% over the previous month, beating the performance of the Finance sector with its gain of 5.35%, and the S&P 500's gain of 1.64%.
Analysts and investors alike will be keeping a close eye on the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to go public on July 24, 2026. The company's earnings per share (EPS) are projected to be $4.39, reflecting a 7.6% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $19.61 billion, reflecting a 9.82% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.65 per share and revenue of $79.25 billion, indicating changes of +14.76% and +9.72%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.35% increase. Right now, American Express possesses a Zacks Rank of #3 (Hold).
With respect to valuation, American Express is currently being traded at a Forward P/E ratio of 19.81. This represents a premium compared to its industry average Forward P/E of 11.09.
Also, we should mention that AXP has a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Financial - Miscellaneous Services industry had an average PEG ratio of 1.01.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.
American Express a Chase rozšiřují luxusní salonky mimo letiště, aby přilákaly bohaté držitele karet. Amex má partnerství s více než 20 místy po celém světě a Chase buduje vlastní prostory na festivalech i ve sportovních arénách.
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.
American Express umožňuje držitelům karet v USA platit body z programu Membership Rewards přímo přes Apple Pay při online nákupech v aplikacích na iPhonu či iPadu. Body lze použít na celou nebo část platby.
American Express U.S. card members can now use their Membership Rewards points on everyday purchases by redeeming the points directly within Apple Pay’s checkout experience.
This capability is enabled by American Express’ new “Use Pay with Points with Apple Pay” feature, the company said in a Tuesday (June 30) press release.
Eligible card members can pay with points by shopping online or in apps on iPhone or iPad, selecting Apple Pay at checkout, choosing an eligible American Express Membership Rewards card, selecting “Use Rewards,” entering the amount to apply toward the eligible purchase, and completing the Apple Pay transaction, according to the release.
Points can be used to cover all or part of the purchase, per the release.
“Card Members want rewards that fit naturally into how they shop and spend,” Lisa Kalhans, executive vice president of U.S. Consumer Cards at American Express, said in the release. “With this launch, we’re making it easier than ever for Card Members to use Membership Rewards points on the purchases they make every day.”
Jennifer Bailey, vice president of Apple Pay and Apple Wallet at Apple, said in the release that users want choices when shopping online and that the partnership with American Express will provide a new way to redeem rewards.
“The feature makes it incredibly simple and convenient to use points with the seamless, secure experience users know and love from Apple Pay,” Bailey said.
The PYMNTS Intelligence report “Embedded Offers: The Billion-Dollar Opportunity Inside Recent Consumer Spending” found that consumers indicate that convenience is as important as the reward itself and that it’s important to make incentives easy to access.
American Express reported in April that during the first quarter, the company saw steady gains in card spending, broad engagement across categories and a custom base that continues to tilt younger.
In May, American Express expanded further into sports and loyalty with a new partnership that ties payments, rewards and fan engagement together. The company partnered with licensed sports merchandise company Fanatics to launch a co-branded credit card, add sports-focused rewards options and deepen its presence across Fanatics’ commerce and events ecosystem.
American Express spustil s Mercantile a ABA novou business kartu pro samostatné právníky a malé advokátní kanceláře. Cílí na malé advokátní kanceláře a rozšiřuje svůj komerční platební byznys.
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%.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
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.
High-net-worth households are holding up in an inflation-riddled environment that's making life difficult for everyone else.
That's the big takeaway from American Express' (AXP +1.47%) most recent quarterly earnings conference call, anyway. Without outright saying it, during the call, CFO Christophe Le Caillec commented: "We expect card fee growth to pick up as the year progresses as we see the impact from the Platinum refresh, exiting the year in the high teens." He then added: "Importantly, about one‑fourth of the overall U.S. consumer Platinum portfolio has been billed for the higher annual fee, and we have seen no change to our very high retention rates relative to pre‑refresh."
Image source: Getty Images.
Its fiscal results confirm this. The credit card company's currency-adjusted revenue improved 9% year over year for the three months ended in March on a comparable increase in transaction volume, driving net income 15% higher. Restaurant spending and retail spending were up 9% and 11%, respectively, with the latter led by a 18% year-over-year improvement in luxury retail purchases. Delinquencies and write-offs remain relatively low as well, not budging from year-ago levels.
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It's not just American Express seeing this resiliency among the affluent, either.
Government reports seem to confirm American Express' findings The United States Federal Reserve typically focuses on domestic macroeconomics rather than fine, consumer-level details. In its most recent edition of the Beige Book published in May, however, the Fed made a point of addressing the current consumer-level divide. It acknowledged that over the course of the past few weeks, "Higher-income consumers drove strong demand for premium goods and services, with one contact describing a focus on 'unapologetic luxury.' " It then contrasted that with: "However, retailers and other consumer-facing businesses noted continued financial stress among middle- and lower-income households."
In other words, the so-called K-shaped economic recovery is a real thing.
The Fed isn't the only organization to take notice of this dynamic, either. The National Association of Realtors and online real estate marketplace Redfin both report a surge in home purchases valued at $1 million-plus this year, despite the headwind the lower-priced segment of the real estate market is facing. Meanwhile, Bank of America reports that while all demographics spent more in May of this year than they did in May of last year, high-income households led the way, with a 5.4% increase versus just over a 4% increase for all other households.
Then again, why wouldn't this be the case? Although the roaring stock market theoretically benefits everyone, as The Motley Fool's in-house research highlights, the wealthiest 1% of the U.S. hold more than 40% of its total market value. The other 99% divvy up the rest, with the more affluent households among this 99% disproportionately owning most of this remainder. The bottom half collectively holds less than 2% of the U.S. stock market's total value.
Great news for American Express So, yes, American Express' indirect suggestion is real -- while the majority of Americans may be financially frustrated at this time, the smaller crowd of affluent consumers truly is doing fine.
This, of course, bodes well for American Express, which has managed to turn more than its fair share of this crowd into cardholders, firming up its fiscal results for the foreseeable future. The stock's arguably well worth its premium price.
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.
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.
Image Source: Zacks Investment Research
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.
