The major indexes are rallying on Friday. Not by a lot, but any uptick counts.
Oil prices retreated from recent highs on reports of potential diplomatic progress in the Middle East. The Dow Jones Industrial Average (^DJI +0.46%) is up 0.7% at 11:46 a.m. ET, gaining roughly 310 points. The S&P 500 (^GSPC +0.05%) has climbed 0.6%, while the Nasdaq Composite (^IXIC -0.64%) peeked 0.1% higher. All three indexes started the day lower, ranging from a 0.1% drop in the Nasdaq Composite to a 0.2% increase in the Dow.
^DJI data by YCharts
China and Pakistan step in and oil prices step down Brent crude is trading near $95 per barrel, down roughly 4% from Thursday's close, after Reuters reported that Pakistan is exploring ways to broker new peace negotiations between the U.S. and Iran. China is apparently pushing the diplomatic effort, according to three Pakistani sources. The Iranian conflict is starting to weigh on Chinese interests, because the Middle Kingdom is a leading importer of oil from the Persian Gulf.
This comes after President Trump told Axios earlier this week that he's considering a "massive attack" on Iran that would be bigger than anything seen so far in the conflict. In other words, tensions are still high. U.S. forces have been hitting Iranian targets for 13 straight nights. But the mere possibility of diplomatic progress is enough to take some pressure off oil markets.
Image source: Getty Images.
Earnings season rumblings also moved the market this morning. American Express (AXP -4.45%) took 120 points off the Dow score with a 5.9% price drop. The credit card veteran beat earnings estimates and raised full-year revenue guidance. Still, profit margins will compress slightly in the second half as the company reinvests the extra top-line cash into cardholder perks and other growth initiatives.
The tech sector added more pressure than fuel to the S&P 500 and Nasdaq Composite indexes. Korean memory chip giant SK Hynix (SKHY -8.81%) is down 6.6% on reports that the company is reallocating some of its AI-oriented HBM manufacturing capacity to commodity DRAM production. Is the memory demand from AI computing systems slowing down, or are DRAM margins growing lucrative? Hynix's first earnings report as a Nasdaq-traded company should provide some insight next week.
Apple (AAPL +3.52%) is up 2.5% and providing the biggest boost to all three major indexes. The stock bounced back from Thursday's decline as investors rotate back into mega-cap tech.
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Wrapping up a wild week Friday's gains brought the Dow and S&P 500 back to where they were at the end of last Friday, making up for Thursday's deep cuts. The Nasdaq Composite is down 1.4% this week. Not exactly catastrophic, but not a great week either.
The market spent most of the week digesting what it actually costs to build the AI infrastructure everyone keeps promising will change everything. Next week will bring another four reports from the Magnificent 7 club, giving investors a clearer picture of how the AI boom is shaping up.
The semiconductor sector is facing its own set of problems. After this week's earnings reports, investors are jumpy about anything that suggests AI demand might be slowing.
Oil prices are still elevated despite Friday's pullback. The Middle East situation remains volatile, adding more fuel to inflationary fires than to vehicles and power plants these days.
Can this rally last? That depends on two things: oil staying below $100 and other tech giants showing lighter capex bills than Alphabet did this week. Stay tuned.
American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in Alphabet and American Express. The Motley Fool has positions in and recommends Alphabet, American Express, and Apple. The Motley Fool has a disclosure policy.
Spending by American Express (AXP -4.45%) cardholders continues to rage, as the company just posted its largest quarter of billed business over the past year.
Billed business volume was $455.8 billion in the second quarter, up 10% year over year and roughly 6.5% from the prior quarter.
Despite strong spending data, American Express stock traded roughly 5% lower, as of 12:42 p.m. ET, after posting second-quarter results.
Amex reported $4.53 earnings per share, ahead of Wall Street consensus estimates. Revenue of $19.64 billion missed consensus by about $50 million.
The company also reiterated its full-year EPS guide of $17.30 to $17.90 and then raised its full-year revenue guide from up 9% to 10% to just 10% year over year.
Here’s what this all means for the stock.
Image source: Getty Images.
Investors likely had high expectationsOf all the credit card players, Amex is viewed as best-in-breed.
Not only does the company operate a closed-loop payment system that generates strong annual recurring fee income, but the company also has the highest-quality cardholders from a credit perspective.
Amex’s card base caters to a higher-net-worth population that tends to be more resilient through the economic cycle. The sell-off can likely be attributed to high expectations entering the quarter.
“Overall, the quarter was marked by a top-line shortfall,” Evercore ISI analyst John Pancari wrote in a research note earlier on July 24.
Expenses in the quarter also jumped 12% year over year and 4.4% from the prior quarter, which could also be pressuring shares.
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Management attributed the step-up in expenses to investments made to refresh its U.S. platinum card offerings, in which the company continues to win new customers.
Amex added 3 million new card members in the second quarter, about in line with what it has done over the past five quarters.
“Retention rates remain very high and we continue to attract a large number of high credit worthy customers with 65% of new consumer accounts coming from Millennials and Gen Zs,” Amex’s CEO Stephen Squeri said on the company’s earnings call.
Meanwhile, the company earlier this year raised the subscription fee on its platinum card from $695 per year to $895.
Is the stock a buy?American Express has retreated from all-time highs made at the end of 2025 and is now down about 13.3% this year.
There is certainly some cyclicality in the stock, as it depends on consumer spending and strong consumer credit quality, which could struggle if there is an eventual recession.
But right now, the data doesn’t support that, as spending data continues to come in strong.
Furthermore, despite the top-line miss in the second quarter, the company maintained EPS guidance and increased full-year revenue guidance.
On a price-to-tangible-book basis, the stock currently trades at a high valuation, but still not too far above its five-year average. Amex also now trades below its two-year average forward-earnings multiple.
AXP Price to Tangible Book Value data by YCharts
I think long-term investors can continue to buy the stock and enjoy solid returns. Not only is the Amex brand incredibly powerful, but the stock also has some ability to hedge inflation.
While it’s not immune to a slowdown in the economy, Amex can charge higher interest rates on credit cards when rates rise, and its payment network collects fees based on a percentage of each transaction, so fees will increase when transactions get more expensive.
Revenue Growth: 10% year-over-year increase.Earnings Per Share (EPS): $4.53 for the quarter, with full-year guidance of $17.30 to $17.90.Net Income: Up 8% year
American Express (AXP) shares declined despite reporting a Q2 earnings per share (EPS) that exceeded expectations. Investors are concerned that the company main
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.
For the quarter ended June 2026, American Express (AXP - Free Report) reported revenue of $19.64 billion, up 10% over the same period last year. EPS came in at $4.53, compared to $4.08 in the year-ago quarter.
The reported revenue represents a surprise of +0.01% over the Zacks Consensus Estimate of $19.64 billion. With the consensus EPS estimate being $4.41, the EPS surprise was +2.72%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American Express performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Network volumes: $516.80 billion versus the four-analyst average estimate of $520.90 billion.Book value per common share: $48.42 compared to the $49.31 average estimate based on two analysts.Billed business - Total: $455.80 billion versus the two-analyst average estimate of $459.77 billion.Total non-interest revenues: $14.99 billion compared to the $15.04 billion average estimate based on five analysts.Net Interest Income: $4.65 billion compared to the $4.67 billion average estimate based on five analysts.Non-interest revenues- Discount revenue: $10.16 billion compared to the $10.09 billion average estimate based on four analysts.Non-interest revenues- Net card fees: $2.86 billion compared to the $2.92 billion average estimate based on four analysts.Non-interest revenues- Service fees and other revenue: $1.96 billion compared to the $1.99 billion average estimate based on four analysts.Total Interest Income: $6.61 billion compared to the $6.69 billion average estimate based on four analysts.View all Key Company Metrics for American Express here>>>
Shares of American Express have returned -0.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Shares of American Express (AXP -5.08%) are down 6.5% at 10:25 a.m. ET. The payment card veteran reported Q2 2026 results last night, beating Wall Street's bottom-line expectations but falling just short of analyst consensus on revenues. The market's focus on a slight revenue miss seems odd, given that management also raised its full-year revenue guidance.
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Q2 by the numbers American Express posted 10% year-over-year revenue growth, landing at $19.64 billion. The average analyst was looking for $19.69 billion. Earnings rose 11% to $4.53 per diluted share. Here, the Street consensus pointed to $4.40 per share.
CEO Stephen Squeri called Q2 "another excellent quarter" with better-than-expected member spending growth. The company raised its full-year revenue growth guidance from 9-10% to 10%. It's a small boost, but half a percent makes a difference when you're managing $456 billion of card charges in a single quarter.
Image source: The Motley Fool.
Growth now, profits later So why are American Express shares plunging today, despite a solid earnings surprise and raised full-year revenue guidance? Well, the additional sales dollars will not trickle down to the bottom line. Management is reinvesting the extra capital into growth-oriented moves.
That's already going on. For example, higher fees for the Platinum Card contributed to the double-digit revenue growth in the first half, but the same program also lifted operating expenses by 12%. That's the cost of offering card perks that customers actually use.
Credit quality remains solid. Provisions for credit losses dropped to $1.1 billion from $1.4 billion a year ago, and the net write-off rate held flat at 2%. Card Member spending growth of 9% marked the highest rate in three years on a currency-adjusted basis.
At 15.9 times forward earnings, with credit quality strengthening and spending growth accelerating, this drop looks like a chance to buy a premium business at a discount. Use cash, not a credit card.
American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in American Express. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.
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.
Key Takeaways American Express beat Q2 EPS estimates as revenues rose 10% on stronger Card Member spending and fee growth.AXP reported 9% network volume growth, while credit loss provisions fell 23% due to a reserve release.AXP expects 2026 revenue growth of 10% and reaffirmed EPS guidance of $17.30-$17.90. American Express Company (AXP - Free Report) reported second-quarter 2026 earnings per share (EPS) of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year.
Total revenues, net of interest expense, improved 10% year over year to $19.6 billion. The top line beat the consensus mark by a whisker.
The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.
AXP’s Q2 Operational PerformanceNetwork volumes grew 9% year over year in the second quarter to $516.8 billion on the back of higher U.S. consumer spending. But the metric missed the Zacks Consensus Estimate of $520.9 billion. Total interest income of $6.6 billion rose 5% year over year but missed the consensus mark of $6.7 billion. Provision for credit losses came in at $1.1 billion, which declined 23% year over year in the quarter under review due to a reserve release during the quarter compared to a reserve build in the prior-year quarter.
Total expenses increased 12% year over year to $14.5 billion due to higher variable customer engagement costs resulting from increased spending by Card Members, the refresh of the U.S. Platinum Card, greater use of Card Member benefits, and higher operating costs.
AXP’s Q2 Segmental PerformancesThe U.S. Consumer Services segment recorded pre-tax income of $2.1 billion, which grew 23% year over year and beat the Zacks Consensus Estimate by 27%. Total revenues, net of interest expenses, improved 11% year over year to $9.5 billion but marginally missed the Zacks Consensus Estimate. An expanding Gen-Z and Millennials’ customer base favored this segment’s results.
The Commercial Services segment’s pre-tax income of $970 million rose 7% year over year in the second quarter but fell short of the Zacks Consensus Estimate of $972.8 million. Total revenues, net of interest expense, grew 7% year over year to $4.5 billion, and beat the consensus mark of $4.4 billion.
The International Card Services segment posted pre-tax income of $477 million, which rose 3% year over year but missed the Zacks Consensus Estimate of $908.8 million. Total revenues, net of interest expense, climbed 12% year over year to $3.6 billion but missed the consensus mark of $3.9 billion.
The Global Merchant and Network Services segment’s pre-tax net income of $1.1 billion advanced 7% year over year in the quarter under review but missed the Zacks Consensus Estimate of $1.2 billion. Total revenues, net of interest expense, improved 8% year over year to $2.1 billion but came in lower than the consensus mark by 1.2%.
Corporate and Other incurred a pre-tax loss of $569 million in the second quarter, wider than the prior-year quarter’s loss of $550 million.
Balance Sheet (As of June 30, 2026)American Express exited the second quarter with cash & cash equivalents of $45.2 billion, which fell 5.3% from the 2025-end level. Total assets of $308.2 billion increased 2.7% from the figure at the end of 2025.
Long-term debt amounted to $57 billion, up 1.1% from the figure as of Dec. 31, 2025. Short-term borrowing was $2 billion.
Shareholders’ equity of $34.3 billion rose 2.4% from the 2025-end level. Return on average common equity remained flat year over year at 37.8% in the quarter under review.
Capital Deployment UpdateAmerican Express bought back 7 million common shares in the second quarter of 2026 for $2.2 billion and paid $600 million worth of dividends. In the quarter under review, the company paid a per-share dividend of 95 cents.
AXP’s 2026 OutlookAmerican Express now expects 2026 revenues to increase to 10% from the 2025 level. Management continues to estimate EPS in the range of $17.30-$17.90, the midpoint of which indicates an improvement of 14.4% from the 2025 figure.
AXP’s Zacks Rank & Key PicksAXP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader finance space are Victory Capital Holdings, Inc. (VCTR - Free Report) , Acadian Asset Management Inc. (AAMI - Free Report) and Newmark Group, Inc. (NMRK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Victory Capital’s current-quarter earnings of $1.81 per share has witnessed five upward revisions in the past 30 days against none in the opposite direction. VCTR’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 6.9%. The consensus estimate for current-quarter revenues is pegged at $386 million, suggesting a 9.9% year-over-year jump.
The consensus estimate for Acadian Asset Management’s current-quarter earnings is pegged at $1.05 per share, which signals 64.1% year-over-year growth. Its earnings beat estimates in three of the trailing four quarters and missed once, with the average surprise being 8.6%. The consensus mark for AAMI’s current-quarter revenues of $179.4 million implies 43.7% year-over-year growth.
The consensus estimate for Newmark Group’s current-quarter earnings is pegged at 39 cents per share, which has witnessed one upward revision in the past seven days against none in the opposite direction. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 12.1%. The consensus estimate for NMRK’s current-quarter revenues is pegged at $881 million, which implies a 16.1% year-over-year rise.
Index Dow Jones +0,27 % na 51848,77 b., S&P 500 +0,11 % na 7416,35 b., Nasdaq Composite -0,47 % na 25018,65 b.
Americké akcie se v úvodu páteční seance obchodují smíšeně, když investoři vyhodnocují další várku kvartálních výsledků. Zatímco indexy Dow Jones a S&P 500 mírně rostou, technologický Nasdaq ztrácí, přičemž pod tlakem zůstávají informační technologie. Naopak se daří realitnímu, energetickému a zdravotnickému sektoru.
Telekomunikační společnost Verizon reportovala za 2Q očištěný zisk na akcii ve výši 1,30 USD, čímž překonala očekávání analytiků na úrovni 1,27 USD. Volné peněžní toky meziročně vzrostly o 24,4 % na 6,4 mld. USD a počet nových zákazníků širokopásmového připojení dosáhl 348 tis. Společnost zvýšila celoroční výhled očištěného zisku na akcii na 4,99 až 5,04 USD (z 4,95 až 4,99 USD) a očekává růst volných peněžních toků o 9 až 10 %. Analytici pozitivně hodnotili nižší odchodovost zákazníků a příznivý vývoj hospodaření. Akcie Verizonu přidávají 2,94 %.
Kabelový operátor Charter Communications vykázal za 2Q tržby ve výši 13,53 mld. USD, které meziročně poklesly o 1,7 %, ale mírně překonaly očekávání trhu. Očištěný zisk EBITDA meziročně klesl o 4,3 % na 5,45 mld. USD a zaostal za konsensem ve výši 5,58 mld. USD, přičemž nižší než očekávané byly rovněž volné peněžní toky (0,97 mld. USD oproti očekávaným 1,14 mld. USD). Počet zákazníků internetových služeb se snížil o 166 tis., zatímco počet mobilních linek vzrostl o 406 tis. Společnost nadále očekává celoroční kapitálové výdaje přibližně 11,4 mld. USD. Akcie Charter Communications odepisují 4,45 %.
Také telekomunikační a mediální konglomerát Comcast reportoval své kvartální výsledky za 2Q roku 2026. Výnosy sice meziročně poklesly o 1,2 %, překonaly však očekávání analytiků. Nad odhady se umístil rovněž očištěný zisk na akcii a volné peněžní toky. Streamovací služba Peacock poprvé vykázala kladný očištěný zisk EBITDA, když těžila mimo jiné z vysílání play-off NBA a mistrovství světa ve fotbale. Akcie Comcast +1,67 %.
Americká finanční společnost American Express reportovala za 2Q zisk na akcii ve výši 4,53 USD, nad očekáváním analytiků na úrovni 4,41 USD. Tržby meziročně vzrostly o 10 % na 19,64 mld. USD, avšak mírně zaostaly za konsensem, obdobně jako příjmy z poplatků za karty (2,86 mld. USD oproti očekávaným 3,01 mld. USD). Pozitivně překvapily nižší opravné položky na úvěrové ztráty, které meziročně poklesly o 21 % na 1,1 mld. USD. Společnost zvýšila celoroční výhled růstu tržeb na 10 %. Akcie American Express -6,06 %.
Americká společnost SLB (dříve Schlumberger), která poskytuje služby v oblasti ropného průmyslu vykázala za 2Q očištěný zisk na akcii ve výši 0,55 USD, zatímco analytici očekávali 0,51 USD. Tržby meziročně vzrostly o 5 % na 8,97 mld. USD, přičemž růst ve většině zahraničních regionů a vyšší výnosy divize Production Systems (3,77 mld. USD, +24 % meziročně) kompenzovaly slabší vývoj na Blízkém východě. Volné peněžní toky dosáhly 716 mil. USD a výrazně překonaly konsensus ve výši 327 mil. USD. Analytici vyzdvihli zejména rychlý růst segmentu datových center a přínos akvizice ChampionX. Akcie SLB přidávají 9,66 %.
Akcie výrobce paměťových medií Sandisk odepisují 8,5 %, když investoři upravovali své pozice před zveřejněním kvartálních výsledků a vybírali zisky v sektoru paměťových čipů.
Index S&P 500 +0,11 % na 7416,35 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Reality +2,5 % Informační technologie -0,7 % Energie +1,2 % Zbytná spotřeba -0,1 % Zdravotní péče +0,9 % Finanční sektor +0,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Digital Realty Trust (DLR) +14 % Sandisk Corp (SNDK) -8,5 % SLB (SLB) +9,5 % Coherent Corp (COHR) -8,0 % Equinix (EQIX) +6,7 % CH Robinson Worldwide (CHRW) -6,8 % Universal Health Services (UHS) +6,3 % Lumentum Holdings (LITE) -6,7 % ServiceNow (NOW) +5,1 % Robinhood Markets (HOOD) -6,6 %
Zdroj: Bloomberg
HomeIndustriesBusiness/Consumer ServicesEarnings ResultsEarnings ResultsCardholder perks are resonating, an executive says. ‘It’s really about access.’Updated July 24, 2026, 8:11 a.m. ET
American Express customers just registered their highest spending growth in three years — and the company is seeing particularly strong interest in its Platinum cards.
The credit-card giant has been investing in premium customers, with the Platinum card portfolio now the fastest-growing franchise in the broader business. The card comes with an annual fee of $895, and Amex AXP recently refreshed its array of perks, which now include things like a quarterly Lululemon credit and $200 annually toward an Oura Ring.
While crude oil prices stay elevated near $90 and inflation keeps investors wary, Alex Coffey makes the case that the current environment isn't as dire as some may believe. However, that depends on the U.S.-Iran war and yields.
Stock futures are higher this morning as investors look to recover from yesterday's punishing sell-off sparked by AI spending fears and soaring oil prices; Intel stock rose after the chipmaker's earnings blew past estimates; shares of SpaceX fell after it delayed a test flight of its next-generation Starship for the second time in a week; mega-cap tech stocks stabilized after suffering one of their worst sell-offs in over a year; shares of American Express slid after the credit card provider's mixed quarterly earnings report. Here's what you need to know today.
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 Company (NYSE:AXP, XETRA:AEC1) shares fell about 6% on Friday after the company reported second-quarter revenue that came in slightly below Wall Street expectations, despite beating profit estimates.
The company reported earnings per share of $4.53 for the quarter ended June 30, ahead of the consensus estimate of $4.40. Revenue, net of interest expense, increased 10% year over year to $19.64 billion, slightly below analyst expectations of approximately $19.69 billion.
Net income rose 8% to $3.11 billion from $2.89 billion a year earlier, while diluted earnings per share increased 11% from $4.08. Total billed business, a measure of card spending, rose 9% year over year to $455.8 billion.
American Express raised its full-year 2026 revenue growth guidance to 10% from its prior range of 9% to 10%, while maintaining its earnings per share outlook of $17.30 to $17.90.
For the first six months of 2026, revenue, net of interest expense, increased 11% to $38.54 billion, while net income rose 11% to $6.08 billion. Earnings per share for the period climbed 14% to $8.81.
American Express CEO Stephen Squeri highlighted the company's stronger-than-expected first-half performance, noting that revenue grew 10%, earnings per share reached $4.53, and card member spending increased 9%, marking "the highest rate we've seen in three years on an FX-adjusted basis."
Squeri said that the stronger first-half results prompted the company to raise its full-year revenue growth guidance to 10%, while maintaining its earnings per share outlook of $17.30 to $17.90.
He added that American Express plans to reinvest the outperformance into growth initiatives "given the significant opportunities we see ahead."
He also highlighted accelerating spend and revenue growth driven by investments in the company's value proposition, growth in its US Consumer Platinum portfolio, strengthening credit performance, and continued customer acquisition, particularly among Millennials and Gen Z consumers.
American Express (NYSE:AXP | AXP Price Prediction) stock is sliding Friday morning, trading at $320.55 and down 6% after the card issuer reported a Q2 2026 beat that traders opted to fade. The reaction hit within an hour of the 8:30 a.m. ET 8-K Form, pulling American Express stock down from a prior close of $340.84.
The drop extends a rough stretch for shareholders. American Express stock entered the release already 7% lower year to date (YTD), and today’s move deepens that underperformance versus the broader market.
American Express’s payments-sector peers are barely budging. Visa (NYSE:V) stock and Mastercard (NYSE:MA) stock are both holding steady in early trading, signaling the reaction is company-specific rather than a payments-segment rotation.
Beat Headline, Cautious Follow-Through American Express posted Q2 EPS of $4.53, topping the $4.40 consensus estimate, while revenue net of interest expense of $19.6 billion came in just below estimates. Net income landed at $3.11 billion.
Billed business climbed 9% to $455.8 billion, the strongest Card Member spending growth in three years on an FX-adjusted basis. American Express’s management raised its full-year revenue growth guidance to 10%, yet held FY 2026 EPS guidance unchanged at $17.30 to $17.90.
That combination is the friction point for American Express. Better top-line trajectory is being funneled back into growth spending rather than dropping to the bottom line. American Express CEO Stephen Squeri expressed his confidence:
Based on our better-than-expected performance in the first half of the year, we are raising our full-year revenue growth guidance to 10 percent and plan to reinvest this outperformance in growth initiatives given the significant opportunities we see ahead.
However, cost trends compound the concerns for American Express. The company’s consolidated expenses grew 12% to $14.5 billion, outpacing revenue growth, and the effective tax rate jumped to 24% from 19% a year ago.
Credit was a bright spot, though. Provisions of $1.1 billion came in well below the $1.4 billion booked a year ago, and the company’s net write-off rate held flat at 2%. American Express also disclosed a proposed acquisition of TheFork, a European restaurant booking platform with 50,000 restaurants across 11 countries, adding to the reinvestment narrative reshaping expectations.
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Peers Hold Firm as the Move Stays Idiosyncratic Visa stock is essentially flat at $352.40, and Mastercard stock is holding at $532.29. That divergence undercuts any read-through to broader payments weakness on the day.
Zooming out, Visa stock is up 1% YTD, while Mastercard stock sits down 7% YTD. Both networks have posted clean beats in their most recent quarters, keeping their sentiment backdrop intact heading into Visa’s upcoming report.
The Financial Select Sector SPDR Fund (NYSEARCA:XLF), which holds all three names, is trading flat at $55.78. The XLF ETF‘s stability reinforces the idiosyncratic framing, since American Express carries a meaningful weighting inside the fund but isn’t dragging the entire sector down with it today.
The historical pattern matters here too. Four of the last five American Express earnings beats produced negative same-day reactions, so the fade itself follows a familiar script. The magnitude of today’s drop is notably larger than the recent five-quarter average day-of change on beats.
What to Watch Now The next signal is whether American Express stock stabilizes above $320. A hold there could suggest the reinvestment message has been absorbed, while a break lower may invite analyst target trims into next week.
Traders can watch for follow-through in Visa stock and Mastercard stock as Visa’s own report approaches, which could test whether the payments group stays resilient. Sell-side notes focused on American Express expense growth and Platinum Card refresh economics are the likely catalysts for the next leg.
The read for now is straightforward: American Express delivered strong spending and revenue trends, then chose to spend the upside rather than book it. That posture may prove defensible over the long term, but it explains why a clear beat isn’t translating into an AXP stock rally today.
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Willing and Abel: Berkshire's New CEO Makes Huge Portfolio Changes in Q1American Express NYSE: AXP reported second-quarter results that extended its recent growth momentum, with revenue rising 10% and earnings per share reaching $4.53. The company raised its full-year revenue-growth outlook to 10% while maintaining its EPS forecast of $17.30 to $17.90, saying it plans to reinvest stronger-than-expected revenue performance into customer acquisition, technology and other growth initiatives.
Chairman and Chief Executive Officer Stephen Squeri said the company chose to prioritize investment over directing the outperformance entirely to the bottom line or additional share repurchases. “We can either drop the overperformance to the bottom line and buy back more shares, or we can invest to grow the business further,” Squeri said, adding that management believes reinvestment creates more long-term shareholder value.
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Premium Products Drive Spending and Fee Growth Capital One’s Big Bet Faces Rising Credit RiskThe company’s U.S. Platinum Card refresh, launched in September of last year, was a key contributor to higher customer engagement and spending, according to management. Squeri said the Platinum portfolio has become the fastest-growing portfolio within American Express’ U.S. consumer business.
Chief Financial Officer Christophe Le Caillec said overall spending increased 9.4% on an FX-adjusted basis, accelerating from the first quarter. Goods and services spending grew 9%, while travel and entertainment spending rose 10%. Retail spending increased 13%, restaurant spending rose 10%, and airline spending also advanced 10%.
3 Sectors to Buy While They're Down and 1 to Walk Away FromGlobal American Express Travel bookings increased 22% year over year during the quarter. U.S. consumer spending rose 11%, which Le Caillec described as the strongest growth rate since the first quarter of 2018, excluding pandemic-related periods. Millennials and Gen Z consumers remained the company’s fastest-growing cohorts and represented the largest share of U.S. consumer spending.
American Express acquired 3 million new cards during the quarter. More than 70% of new accounts acquired year to date were on fee-based products, while 75% of new accounts in the second quarter came through fee-paying products, the highest level since the company increased its focus on premium offerings.
Net card fees rose 15.4%, reaching record levels and remaining the company’s fastest-growing revenue line. Le Caillec said card-fee growth is expected to accelerate in the third quarter and exit the year in the high teens, reflecting the gradual recognition of higher Platinum Card fees as customers are repriced and those fees are amortized over 12 months.
Credit Performance Remains Strong Total balances increased 9% year over year on an FX-adjusted basis, generally keeping pace with spending growth. Management said delinquency and write-off rates remained below 2019 levels, with delinquency rates holding between 1.2% and 1.3% for more than three years.
Provision expense was $1.1 billion and included a $191 million reserve release, primarily reflecting improved portfolio credit performance. The second-quarter write-off rate was flat from the prior quarter, while the delinquency rate declined.
Squeri and Le Caillec attributed the credit performance to the company’s strategy of attracting high-credit-quality, premium customers. The company said 65% of new consumer accounts came from Millennial and Gen Z customers, and about 70% of new consumer Platinum accounts outside the United States came from those generations.
International spending rose 12% on an FX-adjusted basis, with four of the company’s five largest international countries reporting double-digit growth. International Platinum Card spending grew 20% on an FX-adjusted basis after American Express refreshed the card in approximately 80% of the countries where it is issued.
Investment Plans Include Technology, Dining and Customer Acquisition American Express said it will increase investment in customer acquisition and technology during the second half of 2026. Marketing expense is expected to rise about 10% year over year in the second half, while operating expenses are projected to increase in the mid-single digits for the full year.
The company also expects to invest in its proposed acquisition of TheFork, a European online restaurant-booking platform with 50,000 restaurants across 11 countries. Squeri said the transaction would support American Express’ dining strategy and complement its existing Resy and Tock platforms.
Management said it does not view the dining platforms primarily as standalone profit centers. Instead, it sees them as components of the broader card-member value proposition that can support retention, customer acquisition, merchant relationships and spending. Resy and Tock are expected to come together from a front-end user-experience perspective, while TheFork is expected to remain a standalone European-focused entity.
The company also highlighted new and expanded partnerships, including a global partnership with ALL Accor, as well as sports-related relationships with the NFL and Fanatics. Squeri said these partnerships are intended to provide card members with access to events, experiences, merchandise and other benefits.
Portfolio Sales Create Revenue-Line Effects, Not Material Earnings Impact American Express said sales of two small-business co-brand portfolios will affect reported spending and net interest income growth during the remainder of the year. One portfolio, Lowe’s, transferred in April, while the Amazon portfolio is expected to transfer in the third quarter.
Starting in the fourth quarter, management expects the portfolio sales to reduce quarterly spending growth by about 1 percentage point and net interest income growth by about 2.5 percentage points until the company laps the sales. The combined effect on total revenue is expected to be about 1 percentage point.
Le Caillec said the sales will have a negligible impact on pretax income and were already included in the company’s full-year guidance.
American Express returned $2.9 billion of capital to shareholders during the quarter, including $600 million in dividends and $2.2 billion in share repurchases. The company reported a 36% return on equity for the quarter.
For the first half of 2026, American Express reported 11% revenue growth and 14% EPS growth. Management said it expects spending momentum to continue through the second half, though portfolio transfers will create a modest headwind to reported billing growth.
About American Express (NYSE:AXP)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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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NEW YORK--(BUSINESS WIRE)--American Express Company (NYSE: AXP) today reported its second-quarter 2026 financial results. The earnings release and supplemental financial data are available on the company's Investor Relations website at http://ir.americanexpress.com. An investor conference call will be held at 8:30 a.m. (ET) today to discuss the company's second-quarter 2026 results. Live audio and presentation slides for the investor conference call will be available to the general public on th.
An American Express credit card mockup is seen in this illustration taken July 17, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 24 (Reuters) - American Express (AXP.N), opens new tab increased its full-year revenue growth forecast and beat Wall Street expectations for second-quarter profit on Friday as its affluent customers continued to swipe their cards for travel and dining despite lingering economic uncertainty.
Unlike many rivals that cater to a broader range of borrowers, the credit card issuer derives much of its business from higher-income consumers, who are generally better-positioned to weather inflationary pressures and maintain discretionary spending.
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Billed business, a measure of total spending on AmEx cards, rose 9% to $455.8 billion, on a foreign exchange-adjusted basis. Its revenue rose 10% to $19.6 billion in the quarter.
"Six months into the year, we're seeing stronger momentum than we expected. The investments we made in our value propositions have driven accelerated spend and revenue growth," said CEO Stephen Squeri in a statement.
The company now expects 2026 revenue to grow 10% — in line with Wall Street expectations, according to estimates compiled by LSEG. The stock was last down 1.4% in volatile premarket trading after AmEx maintained its profit growth forecast.
AmEx's earnings offer an early look at spending patterns among affluent consumers, providing investors with an early read on discretionary spending before other major card networks report results.
The company posted a profit of $4.53 per share for the three months ended June 30, compared with $4.08 per share a year earlier. Analysts expected earnings of $4.40 per share.
The New York-based company set aside $1.1 billion in consolidated provisions for credit losses in the quarter, versus $1.4 billion a year ago.
U.S. consumer sentiment rebounded from record lows in June, despite households remaining worried about the high cost of living, according to the University of Michigan's Surveys of Consumers.
Loan-loss provisions, often referred to as rainy-day reserves, reflect how much a lender sets aside to cover loans it expects may not be repaid, offering a window into how confident it is that borrowers will keep up with payments.
Reporting by Rishab Shaju and Manya Saini in Bengaluru; Editing by Joyjeet Das
Our Standards: The Thomson Reuters Trust Principles., opens new tab
American Express Company (NYSE:AXP) will release its second quarter earnings report before the opening bell on Friday, July 24.
Analysts expect the company to report quarterly earnings of $4.40 per share, up from $4.08 per share in the year-ago period. The consensus estimate for American Express quarterly revenue is $19.7 billion. It reported $17.86 billion last year, according to Benzinga Pro.
On Wednesday, American Express and ALL Accor announced a new global partnership featuring elite status match and points transfer.
Shares of American Express fell 2.3% to close at $340.84 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying AXP stock? Here’s what analysts think:
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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.
Analysts expect the company to report quarterly earnings of $4.40 per share, up from $4.08 per share in the year-ago period. The consensus estimate for American Express quarterly revenue is $19.7 billion. It reported $17.86 billion last year, according to Benzinga Pro.
On Wednesday, American Express and ALL Accor announced a new global partnership featuring elite status match and points transfer.
With the recent buzz around American Express, some investors may be eyeing potential gains from the company’s dividends too. As of now, AXP has an annual dividend yield of 1.09%, which is a quarterly dividend amount of 95 cents per share ($3.80 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $550,660 or around 1,579 shares. For a more modest $100 per month or $1,200 per year, you would need $110,202 or around 316 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.80 in this case). So, $6,000 / $3.80 = 1,579 ($500 per month), and $1,200 / $3.80 = 316 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
AXP Price Action: Shares of American Express fell 0.6% to close at $348.74 on Wednesday.
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Both American Express (NYSE:AXP | AXP Price Prediction) and Verizon Communications (NYSE:VZ) report Q2 2026 results before market open on Friday, July 24, 2026, with Verizon's earnings call confirmed for 8:30 AM ET.
AXP Energy Limited (AUNXF) Shareholder/Analyst Call July 22, 2026 9:00 PM EDT
Company Participants
Daniel Lanskey - CEO, MD & Non-Executive Director
Conference Call Participants
Alex Paull
Presentation
Alex Paull
Good morning, everyone, and welcome to today's webinar. My name is Alex Paull from Investor Stream, and I'll be your host this morning. Today, we have AXP Energy Managing Director, Dan Lanskey, who will provide an update on the Transformational Farm into Block 9 Onshore Syria, announced to the market on June 15 as well as providing an update on ongoing operations at the Charlie #1 well located on the 100% owned Edwards lease in Oklahoma and the broader field development strategy.
Following the briefing, Dan will address any questions you may have. We'll attempt to get through as many questions as time permits. Please feel free to send in your questions via the Zoom platform or also e-mail them to me at [email protected]. Many of you have already taken the opportunity to submit questions ahead of time, which is greatly appreciated. Finally, a copy of the webinar will also be available on AXP's social media platforms later today.
But for now, I'd like to throw it over to Dan to kick things off for us. Dan, the floor is yours.
Daniel Lanskey
CEO, MD & Non-Executive Director
Thank you, Alex, and thank you, everyone, for joining us today. AXP Energy is entering an important period of growth, combining a near-term low-cost development drilling program in Oklahoma with a potentially transformational farming opportunity in Syria Block 9. The Oklahoma portfolio is designed to deliver repeatable production and cash flow, while Block 9 provides exposure to 2 mature high-impact drilling prospects within a substantial 10,039 square kilometer onshore position. This presentation outlines the opportunity, the work program and the key catalysts that we believe can materially reshape AXP Energy
, /PRNewswire/ -- American Express and ALL Accor, Accor's booking platform and loyalty program, today announced a new global partnership rolling out beginning in 2026 across 12 locations, introducing elite status matching and a new Membership Rewards® points transfer option for eligible Card Members.
ALL Accor & Amex partnership Launching in phases across Australia, Austria, Canada, France, Germany, Hong Kong, Italy, Japan, Mexico, Singapore, the United Kingdom and New Zealand, the partnership is designed to elevate the travel journey, from booking and planning to on-property recognition and rewards, across Accor's portfolio of more than 45 brands worldwide, including Raffles, Fairmont and Sofitel.
"This collaboration reflects our continued focus on delivering premium travel value and meaningful rewards for our Card Members," said Suzanne Morel, Senior Vice President, International Products and Partnerships at American Express. "Together with Accor, we're amplifying the value of two trusted global brands, by pairing meaningful recognition with greater redemption flexibility, to deliver elevated, end-to-end experiences for Card Members across markets."
"Bringing the ALL Accor promise to life in new ways, we're connecting our global hospitality ecosystem with American Express Card Members around the world," said Mehdi Hemici, Chief Loyalty & E-Commerce Officer at Accor. "American Express' premium Membership base is perfectly suited for our luxury portfolio. By combining our expansive brands and experiences with the strength of their global reach, we're creating more seamless, personalized stays and unlocking richer ways for guests to engage with ALL Accor at every stage of their journey."
Anchored by elite status matching into ALL Accor and complemented by a new Membership Rewards® points transfer option to ALL Accor, the partnership expands the power and value of American Express Membership.
Elite Status Match for Eligible Card Members
Eligible American Express Card Members will be able to match their American Express status to an equivalent tier within ALL Accor, unlocking enhanced travel benefits and meaningful on-property recognition when staying at participating Accor properties around the world, including:
American Express Consumer, SBS and Corporate Platinum® Card Members will be eligible to receive ALL Accor Gold status which includes free Wi-Fi, welcome amenities, late check-out, complimentary room upgrades (subject to availability) and bonus ALL Accor points. Membership Rewards® Points Transfer
The partnership expands the flexibility and value of American Express Membership Rewards®, giving eligible Card Members a new option to transfer points to the ALL Accor loyalty program. Point conversion ratios will vary by location.
Transferred points may be redeemed within the ALL Accor program across its vast global hotel network of 45 hotel brands, dining, experiences, and more than 110 partners, in accordance with ALL Accor program terms and conditions.
Further country specific details will be made available throughout the year.
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.
ABOUT ALL ACCOR
ALL Accor is a booking platform and loyalty programme embodying the Accor promise during and beyond the hotel stay. Through the ALL.com website and app, customers can access an unrivalled choice of stays from more than 45 Accor brands in 110 countries, always at the best price. The ALL Accor loyalty programme gives members access to a wide range of rewards, services and experiences, along with over 100 renowned partners. ALL Accor supports its members daily, enabling them to live their passions with over 7,000 events worldwide each year: local activities, chef masterclasses, major sports tournaments and the most eagerly awaited concerts. ALL Accor is the loyalty programme preferred by travellers.
American Express aims to improve the B2B payments experience for buyers and suppliers with two new offerings, including a new B2B payment feature and automated invoice reporting capabilities.
Both offerings join American Express’ Buyer Initiated Payments (BIP), which enables buyers to initiate electronic payments to suppliers, the company said in a Tuesday (July 21) press release.
The new B2B payment experience, BIP Connect, enhances BIP by connecting eligible BIP customers to Paymode, a B2B payment network, through a new partnership with the network’s owner, Bottomline, a provider of payments and FinTech solutions, according to the release.
Connecting American Express BIP customers to Paymode’s network of authenticated and verified suppliers helps to streamline onboarding, improve payment efficiency and reduce risk, per the release.
“With BIP Connect, we’re combining the strengths of American Express and Bottomline to accelerate supplier onboarding and provide seamless access to one of the largest supplier networks in the U.S.,” Eva Reda, executive vice president, global commercial services products at American Express, said in the release.
In Bottomline’s own press release about the partnership, Bottomline CEO Craig Saks said: “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 PYMNTS Intelligence, Bottomline and FIS collaboration “Time to Cash™: A New Measure of Business Resilience” found that chief financial officers are using real-time payment rails and digital workflows to cut “time to cash.” They are also using artificial intelligence-powered forecasting and automation to build smarter, faster payment ecosystems.
The second new offering from American Express will add capabilities within BIP that improve invoice matching through automated reporting, according to the company’s press release. These capabilities will help enhance visibility on the status of invoices, save businesses time and ensure the right payment gets made faster.
The automated reporting capabilities are set to be released later this year to a subset of American Express BIP customers, per the release.
“As more businesses look to modernize B2B payments, American Express is helping connect buyers and suppliers through a more integrated and automated invoice payment experience that simplifies accounts payable and receivable, streamlines workflows and makes it easier to do business together,” Casey Klyszeiko, executive vice president, global merchant and network services products at American Express, said in the release.
For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
See More In: accounts payable, accounts receivable, American Express, B2B, B2B Payments, bottomline, invoice payments, News, partnerships, PYMNTS News, supplier payments, What's Hot, What's Hot In B2B
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.
Andra AP fonden boosted its position in American Express Company (NYSE:AXP – Free Report) by 33.3% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 89,320 shares of the payment services company’s stock after acquiring an additional 22,320 shares during the period. Andra AP fonden’s holdings in American Express were worth $27,018,000 at the end of the most recent reporting period.
A number of other hedge funds have also recently modified their holdings of the company. Evolution Wealth Management Inc. grew its position in shares of American Express by 6,600.0% in the 4th quarter. Evolution Wealth Management Inc. now owns 67 shares of the payment services company’s stock worth $25,000 after buying an additional 66 shares during the last quarter. Joseph Group Capital Management bought a new position in shares of American Express during the fourth quarter valued at approximately $26,000. Sfam LLC purchased a new stake in American Express in the fourth quarter worth $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in American Express in the fourth quarter worth $28,000. Finally, Measured Wealth Private Client Group LLC bought a new stake in American Express in the third quarter valued at $28,000. Hedge funds and other institutional investors own 84.33% of the company’s stock.
American Express Stock Performance Shares of AXP stock opened at $351.81 on Tuesday. American Express Company has a 12 month low of $288.34 and a 12 month high of $387.49. The stock has a market cap of $240.05 billion, a PE ratio of 21.95, a price-to-earnings-growth ratio of 1.43 and a beta of 1.04. The company has a current ratio of 1.57, a quick ratio of 1.56 and a debt-to-equity ratio of 1.73. The company’s fifty day moving average price is $330.18 and its 200-day moving average price is $330.87.
American Express (NYSE:AXP – Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The payment services company reported $4.28 earnings per share for the quarter, topping analysts’ consensus estimates of $4.01 by $0.27. American Express had a net margin of 15.13% and a return on equity of 33.95%. The business had revenue of $14.21 billion for the quarter, compared to analysts’ expectations of $18.60 billion. During the same quarter in the prior year, the company earned $3.64 earnings per share. The business’s revenue was up 11.4% compared to the same quarter last year. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. On average, equities analysts expect that American Express Company will post 17.67 EPS for the current fiscal year.
American Express Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Monday, August 10th. Investors of record on Thursday, July 2nd will be paid a $0.95 dividend. The ex-dividend date is Thursday, July 2nd. This represents a $3.80 annualized dividend and a dividend yield of 1.1%. American Express’s dividend payout ratio is presently 23.71%.
Wall Street Analysts Forecast Growth Several brokerages have commented on AXP. Benchmark started coverage on shares of American Express in a report on Monday, July 13th. They issued a “buy” rating for the company. JPMorgan Chase & Co. raised shares of American Express from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $328.00 to $400.00 in a research note on Monday, July 13th. Wells Fargo & Company reduced their price target on shares of American Express from $425.00 to $415.00 and set an “overweight” rating on the stock in a research report on Thursday, April 9th. Weiss Ratings restated a “hold (c+)” rating on shares of American Express in a report on Monday, July 13th. Finally, Loop Capital started coverage on American Express in a research report on Thursday, May 21st. They set a “buy” rating and a $389.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $374.11.
Read Our Latest Stock Analysis on AXP
American Express Company Profile (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.
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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
Allspring Global Investments Holdings LLC raised its holdings in American Express Company (NYSE:AXP – Free Report) by 16.0% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 76,824 shares of the payment services company’s stock after purchasing an additional 10,610 shares during the period. Allspring Global Investments Holdings LLC’s holdings in American Express were worth $23,159,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently made changes to their positions in the company. Evolution Wealth Management Inc. boosted its stake in American Express by 6,600.0% during the 4th quarter. Evolution Wealth Management Inc. now owns 67 shares of the payment services company’s stock valued at $25,000 after acquiring an additional 66 shares during the last quarter. Joseph Group Capital Management acquired a new position in American Express in the fourth quarter worth about $26,000. Sfam LLC bought a new stake in American Express in the fourth quarter valued at about $26,000. Caitong International Asset Management Co. Ltd acquired a new stake in American Express during the fourth quarter valued at approximately $28,000. Finally, Wilkerson Advisory Group LLC bought a new position in American Express during the 4th quarter worth approximately $29,000. 84.33% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth A number of brokerages have recently weighed in on AXP. HSBC boosted their price target on American Express from $312.00 to $329.00 and gave the company a “hold” rating in a report on Monday, July 13th. Evercore began coverage on American Express in a research note on Monday, July 13th. They set a “neutral” rating on the stock. Bank of America lifted their price objective on shares of American Express from $387.00 to $391.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Loop Capital initiated coverage on shares of American Express in a report on Thursday, May 21st. They set a “buy” rating and a $389.00 target price on the stock. Finally, Morgan Stanley upgraded shares of American Express from a “positive” rating to an “overweight” rating in a research report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, American Express has a consensus rating of “Moderate Buy” and an average target price of $374.11.
Read Our Latest Stock Analysis on AXP
American Express Trading Down 1.0% Shares of NYSE AXP opened at $351.81 on Tuesday. The company has a market cap of $240.05 billion, a price-to-earnings ratio of 21.95, a price-to-earnings-growth ratio of 1.43 and a beta of 1.04. American Express Company has a 12-month low of $288.34 and a 12-month high of $387.49. The company has a current ratio of 1.57, a quick ratio of 1.56 and a debt-to-equity ratio of 1.73. The stock’s 50 day simple moving average is $330.18 and its 200 day simple moving average is $330.87.
American Express (NYSE:AXP – Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The payment services company reported $4.28 EPS for the quarter, topping analysts’ consensus estimates of $4.01 by $0.27. American Express had a return on equity of 33.95% and a net margin of 15.13%.The firm had revenue of $14.21 billion during the quarter, compared to the consensus estimate of $18.60 billion. During the same period in the prior year, the business earned $3.64 EPS. The firm’s revenue was up 11.4% on a year-over-year basis. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. Equities research analysts expect that American Express Company will post 17.67 EPS for the current year.
American Express Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Thursday, July 2nd will be given a $0.95 dividend. The ex-dividend date is Thursday, July 2nd. This represents a $3.80 annualized dividend and a yield of 1.1%. American Express’s dividend payout ratio is 23.71%.
American Express Profile (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.
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Key Takeaways Visa's asset-light model, AI initiatives and value-added services support its stronger long-term outlook.V delivered faster revenue growth, stronger estimate revisions and higher implied analyst price upside.American Express benefits from premium customers, but lending exposure raises economic sensitivity. The digital payments industry continues to benefit from rising electronic transaction volumes, cross-border spending and ongoing innovation in payment technologies. As consumer and commercial payment habits evolve, investors are increasingly assessing how leading payment companies are positioned to sustain growth while adapting to changing competitive and regulatory dynamics.
Within this evolving ecosystem, Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) are two of the most established names in the payments industry, but they operate with distinct business models and strategic priorities. Visa primarily serves as a global payments network, while American Express combines payment processing with card issuing and lending, creating different revenue drivers and risk profiles. These differences make the two companies a relevant comparison for investors evaluating long-term earnings resilience, growth opportunities and business quality.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which stock is more attractive now.
The Case for VisaVisa, with a market cap of $643.2 billion, continues to generate growth from the steady expansion of its global payments network while scaling newer revenue streams beyond traditional card processing. In the second quarter of fiscal 2026, payments volume increased 9% year over year to $3.7 trillion and processed transactions rose 9% to 66 billion. Commercial and money movement solutions remained a key contributor, with revenues climbing 24% year over year in constant currency, reflecting healthy demand for cross-border and business payment solutions.
Another major growth driver is Visa's rapidly expanding value-added services business. Revenues from this segment increased 27% in constant dollars during the fiscal second quarter and now account for roughly 30% of total net revenues. AI-powered fraud prevention, consulting, marketing services and issuer solutions continue to deepen customer relationships while creating higher-margin revenue streams that complement the core payments business. The company beat earnings in each of the past four quarters with an average surprise of 3.2%.
Visa is also investing aggressively in technologies that could reshape digital payments over the long term. The company is building infrastructure for AI-powered agentic commerce through Intelligent Commerce Connect and Visa CLI, allowing AI agents to securely initiate transactions. Meanwhile, V is strengthening its blockchain presence with more than 160 stablecoin card programs globally. Stablecoin-linked payment volume rose nearly 200% year over year in the second quarter of fiscal 2026, while its annualized stablecoin settlement run rate reached $7 billion after expanding support to nine blockchains.
Visa has accelerated these initiatives with the launch of the Visa Stablecoin Platform, enabling financial institutions and fintechs to issue, manage and settle stablecoins without building their own infrastructure. The company has also expanded AI-powered fraud prevention through the Visa Threat Intelligence Platform and continues to deepen its value-added services portfolio through acquisitions such as Prisma and Newpay, broadening its capabilities across issuing, real-time payments and risk solutions.
V’s strong cash position enables substantial share buybacks and dividend payouts and supports inorganic growth and financial stability. With $12.4 billion in cash, the company maintains a solid capital position. Its long-term debt-to-capital of 38.6% is lower than the industry’s average of 39.4% and AXP’s 63.4%. Visa returned $9.2 billion to its shareholders through share repurchases and dividends in the fiscal second quarter.
The Case for American ExpressAmerican Express, with a market cap of $242.5 billion, continues to benefit from resilient spending by affluent consumers and the strength of its membership-focused business model. In the first quarter of 2026, billed business rose 10% year over year, while total revenues net of interest expense increased 11%. More than 70% of newly acquired accounts were fee-paying products, supporting recurring fee income and reinforcing customer loyalty. International operations also remained a major contributor, delivering double-digit billed business growth.
The company continues to strengthen its premium ecosystem through investments in travel, entertainment and lifestyle benefits. Spending on Fine Hotels and Resorts and Hotel Collection programs increased 50% year over year in the first quarter of 2026, while spending at U.S. Resy restaurants rose 20%, reflecting strong engagement following the U.S. Platinum card refresh. High retention rates despite higher annual fees indicate that premium customers continue to see value in the company's offerings.
AXP is also expanding its commercial payments franchise. It plans to launch eight new or enhanced commercial products, including business cards, expense management software and cash-flow management tools, marking the largest one-year expansion of its commercial portfolio. These initiatives are designed to strengthen relationships with small and mid-sized businesses while broadening the company's presence in corporate payments. It beat earnings in three of the past four quarters and missed once, with an average surprise of 4%.
American Express is also positioning itself for the next phase of digital commerce through AI and blockchain-based payments. The company introduced the ACE (Amex Agentic Commerce Experiences) Developer Kit and Agent Purchase Protection to enable secure AI-powered transactions. AXP is also a founding participant of Open USD, an open stablecoin initiative launched alongside Visa and other industry partners to promote interoperable digital dollar payments. Beyond digital assets, the company continues to expand its premium ecosystem through new Centurion Lounge openings and strategic sports partnerships, supporting long-term customer engagement and spending growth.
As of March 31, 2026, AXP had $53.8 billion in cash and cash equivalents against just $1.7 billion in short-term debt. The company 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 1.07% is higher than Visa’s 0.75%.
How Do Estimates Compare for V & AXP?The consensus estimates for V’s fiscal 2026 earnings indicate a 14.5% increase from a year ago, while the same for revenues suggests 13.4% growth. It has witnessed one positive earnings estimate revision over the past seven days against no downward revisions.
The Zacks Consensus Estimate for AXP’s 2026 EPS indicates 14.9% year-over-year growth, and the same for revenues signals a 9.8% rise. It has witnessed no positive earnings estimate revisions over the past seven days against one downward revision.
Valuation: V vs. AXPVisa trades at a premium forward price-to-earnings multiple relative to American Express, reflecting its capital-light structure and lower risk profile. V currently trades at a forward P/E of 24.72X, higher than AXP’s 18.62X. The valuation gap underscores the market’s preference for Visa’s stability and diversified growth drivers.
Image Source: Zacks Investment Research
Price TargetVisa currently trades below its average analyst price target of $403.58, implying a 10.5% potential upside from current levels. AXP also trades below its average analyst price target of $376.30, implying a 4.1% potential upside from current levels.
Price Performance ComparisonIn the year-to-date period, Visa outperformed American Express. The S&P 500 has increased 8.9% during this time.
ConclusionBoth V and AXP are well-positioned to benefit from the continued shift toward digital payments, supported by strong brands, expanding payment ecosystems and disciplined capital allocation. American Express stands out for its premium customer base, integrated payments and lending model, growing commercial payments business and attractive shareholder returns. However, its lending exposure also makes its earnings more sensitive to credit conditions and economic cycles.
Visa appears to have the stronger overall investment case. Its asset-light business model, broad global network, faster revenue growth, expanding value-added services business and growing presence in AI-powered commerce and stablecoin infrastructure provide multiple long-term growth avenues with relatively lower risk.
Combined with stronger estimate revisions, a healthier balance sheet and higher upside to the consensus price target, Visa looks better positioned to deliver durable shareholder value, making it the more attractive stock at current levels. While V currently carries a Zacks Rank #2 (Buy), AXP has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Intercorp Financial Services Inc. (IFS - Free Report) and American Express (AXP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Intercorp Financial Services Inc. has a Zacks Rank of #1 (Strong Buy), while American Express has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IFS has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
IFS currently has a forward P/E ratio of 9.95, while AXP has a forward P/E of 20.11. We also note that IFS has a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AXP currently has a PEG ratio of 1.43.
Another notable valuation metric for IFS is its P/B ratio of 1.8. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AXP has a P/B of 7.13.
These metrics, and several others, help IFS earn a Value grade of B, while AXP has been given a Value grade of C.
IFS stands above AXP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IFS is the superior value option right now.
American Express (AXP - Free Report) closed the most recent trading day at $355.35, moving -1.72% from the previous trading session. This move lagged the S&P 500's daily loss of 1.01%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.4%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 6.97% outpaced the Finance sector's gain of 2.6% and the S&P 500's gain of 0.32%.
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 is expected to report EPS of $4.4, up 7.84% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $19.62 billion, reflecting a 9.88% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.67 per share and revenue of $79.28 billion, which would represent changes of +14.89% and +9.76%, respectively, from the prior year.
Investors should also note any 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. American Express is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, American Express is currently being traded at a Forward P/E ratio of 20.47. This signifies a premium in comparison to the average Forward P/E of 10.97 for its industry.
Investors should also note that AXP has a PEG ratio of 1.46 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 0.92.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
NEW YORK--(BUSINESS WIRE)--The Board of Directors of American Express Company (NYSE: AXP) declared a quarterly dividend on the company's 3.550% Fixed Rate Reset Noncumulative Preferred Shares, Series D, of $9,072.22 per share (which is equivalent to $9.07222 per related Depositary Share). The dividend is payable on September 15, 2026 to shareholders of record on September 1, 2026. ABOUT AMERICAN EXPRESS American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by tec.
American Express (AXP - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this credit card issuer and global payments company have returned +7% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Financial - Miscellaneous Services industry, to which American Express belongs, has lost 4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, American Express is expected to post earnings of $4.40 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The consensus earnings estimate of $17.67 for the current fiscal year indicates a year-over-year change of +14.9%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $20.23 indicates a change of +14.5% from what American Express is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, American Express is rated Zacks Rank #3 (Hold).
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For American Express, the consensus sales estimate for the current quarter of $19.62 billion indicates a year-over-year change of +9.9%. For the current and next fiscal years, $79.28 billion and $85.94 billion estimates indicate +9.8% and +8.4% changes, respectively.
Last Reported Results and Surprise HistoryAmerican Express reported revenues of $18.91 billion in the last reported quarter, representing a year-over-year change of +11.4%. EPS of $4.28 for the same period compares with $3.64 a year ago.
Compared to the Zacks Consensus Estimate of $18.62 billion, the reported revenues represent a surprise of +1.55%. The EPS surprise was +6.2%.
Over the last four quarters, American Express surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
American Express is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about American Express. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Retirement-focused investors have a compelling setup in American Express (NYSE:AXP | AXP Price Prediction) before the July 24 earnings report, and the case is straightforward. A premium-customer franchise growing double digits, an aggressive capital return program, and a stock still trading below its December highs make this a rare setup where the fundamentals, the model, and the calendar all point the same direction.
Valuation Is the Easy Part AXP traded around at $359.94 on July 14 against management’s reaffirmed FY2026 EPS guidance of $17.30 to $17.90. That is roughly 20x forward earnings for a business that just posted 18% EPS growth and 10% FX-adjusted revenue growth in Q1. The 24/7 Wall St. model targets $390.12 with 90% confidence, and the Street’s consensus sits at $372.22 across 14 Buy ratings versus just one Sell rating. Shares are down 3.43% year-to-date, offering a cheaper entry on a stronger business.
The Income Story Retirement Investors Want Amex hiked its dividend 16% to 95 cents per share quarterly starting Q1 2026. In that single quarter the company returned $2.3 billion to shareholders, split between $0.7 billion in dividends and $1.7 billion in buybacks. Diluted share count fell to 686 million from 702 million, and Q1 ROE hit 35%. Insiders are voting with cash: 21 recent insider transactions with a net buying direction.
The July 24 Catalyst Q1 delivered the strongest spend growth in three years: Card Member spending grew 9% FX-adjusted, and Net Card Fees rose 16% FX-adjusted, extending a 30-quarter streak of double-digit net card fee growth. Younger cohorts are compounding: Gen Z spending up 38%, Millennials up 13%. The U.S. Platinum refresh drove a 6-percentage-point acceleration in Platinum spend, most of it from tenured cardholders. Polymarket bettors assign a 74.5% probability that Q2 revenue clears $19.5B. CEO Stephen Squeri summed it up: “We had a very strong start to the year, reflecting continued momentum across our premium customer base.”
Why AXP Beats the Obvious Alternative The reflex comparison is Visa (NYSE:V). Visa is a pure transaction toll-taker with no equivalent to AXP’s Net Card Fees line, the fastest-growing pillar at Amex at 16% FX-adjusted growth. AXP also owns the customer relationship through its closed-loop network, which is why over 70% of new accounts are on fee-paying products. Retirement investors get compounding fee income on top of swipe volume, and the credit book is behaving: net write-off rate improved to 2.0% from 2.1%.
The July 24 report is the near-term catalyst to watch.
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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.
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PayPal (NASDAQ:PYPL | PYPL Price Prediction) stock is up 19% to $56.60 in early Wednesday trading following a reported joint takeover offer from Stripe and private-equity firm Advent International valued at more than $53 billion, or $60.50 per share. The bid, first reported by Reuters and the Financial Times, both citing unnamed sources, represents a 28% premium to Tuesday’s close.
The move puts PayPal stock at its highest level in months and unwinds much of a bruising stretch. Shares had fallen 35% over the past 12 months heading into the report and were still down 18% year to date (YTD) as of Tuesday’s close.
PayPal’s payment-sector peers are barely reacting. Visa (NYSE:V) stock is flat at $356, Mastercard (NYSE:MA) shares are flat at $537, and American Express (NYSE:AXP) stock is virtually unchanged at around $356.
Reported $53B Bid Sparks the Rally The offer, if it advances, would rank among the largest payments-sector deals in recent memory. Under the reported structure, Stripe and Advent would own PayPal equally, with no plans to break up the business, and the bid is backed by $50 billion in committed financing. Stripe and Advent are private companies, so neither trades publicly.
This remains a reported approach rather than a signed deal. PayPal has not responded publicly, and Stripe, Advent, and PayPal all declined to comment. Reuters also indicated that an earlier approach in April went unanswered, with the buyers now pushing for an agreement by month-end.
Not everyone thinks $60.50 is enough. On his Substack, “The Big Short” investor Michael Burry called the bid “simply too low” and “only an opening bid,” stated he is not selling PayPal shares, and pegged fair value in a $75 to $115 range, with a best estimate near $100. Thomas Hayes of Great Hill Capital, quoted in reporting, asserted that even an offer above $80 would undervalue PayPal.
Read-Through to Visa, Mastercard, and American Express The muted response in card-network stocks makes sense. Visa and Mastercard are the rails that digital wallets like PayPal and Stripe often run on, so a Stripe-PayPal tie-up is not an obvious fundamental threat to their processing volumes. American Express operates a differentiated closed-loop, premium-cardholder model that competes on a different axis entirely.
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Year-to-date positioning tells the same story. Visa stock is up 2% YTD, Mastercard shares are down 5%, and American Express stock is down 3%. Traders appear to be treating today’s rally in PayPal as an idiosyncratic M&A event, with a thematic “who could be next” spotlight on payments consolidation rather than a re-rating catalyst for the networks. (For readers exploring the broader payments landscape, our Next NVIDIA Playbook report frames how to think about disruptive platform bets like this one.)
To achieve diversified fintech exposure without single-name deal risk, the Global X FinTech ETF (NASDAQ:FINX) offers a basket approach across payments, software, and digital-finance platforms. The ETF is a narrow, thematic fund with concentration risk, so investors should consider keeping their position sizes modest.
What to Watch Next The bull case for PayPal is straightforward: a live takeover premium, a trailing P/E ratio of 9x that leaves room for a higher bid, and an improving free cash flow profile under new CEO Enrique Lores. Polymarket traders are currently pricing an 82% probability that PayPal is acquired before 2027, and a 75% probability that Stripe specifically closes a deal in 2026.
Reddit sentiment on r/stocks flipped from a bearish score of 22 before the news to bullish scores in the 67 to 72 range overnight, with competitive pressure from Apple (NASDAQ:AAPL) Pay, Google Pay, and other wallets remaining a factor if a deal falls apart. Bear in mind that the offer is unconfirmed, and PayPal has not accepted.
Watch for whether PayPal’s board issues a formal response before month-end, whether Stripe and Advent raise the bid to counter Burry-style pushback, and how the stock behaves relative to the $60.50 offer price in the coming days. If PYPL shares trade meaningfully above the bid, the market is probably signaling that it expects a sweetened offer.
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Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListBuilding an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: American Express (AXP - Free Report) Founded in 1850, NY-based American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. AmEx earns revenue through both transaction fees and interest income, supported by a closed-loop payment network. Unlike open-loop peers (e.g., Visa or Mastercard), its integrated system allows AmEx to engage directly with both merchants and cardholders. This setup enables deeper customer insights, targeted marketing and strong customer loyalty.
Since being added to the Focus List on December 23, 2021 at $162.47 per share, shares of AXP have increased 118.15% to $354.43. The stock is currently a #3 (Hold) on the Zacks Rank.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.08 to $17.67. AXP boasts an average earnings surprise of 4%.
Additionally, AXP's earnings are expected to grow 14.9% for the current fiscal year.
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When Warren Buffett handed the chief executive job at Berkshire Hathaway to Greg Abel at the start of this year, he stepped back to the role of chairman and left behind a stock portfolio built around a few enormous bets. The biggest is Apple. The second is American Express (AXP +1.07%), which now makes up about 17% of Berkshire's equity holdings and stands as one of Buffett's longest-held stocks.
It has been a rewarding place to sit. American Express stock has more than doubled over the past five years, and it recently traded around $350 as of this writing, not far below the record high near $382 it set in December. So the question worth asking today is a simple one: With the shares this high, is it too late to buy, or does the current valuation still leave room for more?
Image source: The Motley Fool.
A premium model that keeps working American Express isn't an ordinary card company. It runs what's called a closed-loop network, meaning it issues the cards, handles the transactions, and lends to many of its customers. Even more, it collects an annual fee from members and a cut of everything they spend. And that spend-centric model leans on affluent cardholders who charge a lot and tend to pay their bills, the kind of customer base that holds up relatively well when the economy softens. Those annual fees also recur, and they often see an increase when Amex refreshes a card, creating a stream of high-margin revenue that grows as the cardmember base expands.
The first quarter of 2026 showed the formula still working. Revenue rose 11% year over year to about $18.9 billion, and earnings per share climbed 18%. Billed business -- the total amount members charged to their cards -- rose 10%, a strong pace for a company this size.
More telling is who is doing the spending. Millennial and Gen Z members have become Amex's fastest-growing group, and globally more than 70% of new accounts are now on fee-paying products. That pushes back on the old assumption that American Express is a brand for an older customer base. Better still, those younger members come with years, even decades, of prime spending ahead of them.
"Within our U.S. Platinum portfolio, we are seeing accelerated spend growth following the refresh while maintaining high retention rates after the fee increases went into effect," Chairman and CEO Stephen Squeri said on the company's first-quarter earnings call.
Credit quality, the risk that can hurt a lender fastest, stayed in good shape too. The net write-off rate on U.S. consumer card balances was about 1.9% in the quarter, and balances at least 30 days past due sat near 1.3% -- both still below where they were before the pandemic, with the write-off rate down and delinquencies flat from a year earlier. For now, there's little sign of the borrower stress you might expect this late in an economic cycle.
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The price of a great business But a business of this caliber rarely stays cheap, and American Express no longer is. Based on its recent price and the past year's earnings, the stock trades at a price-to-earnings ratio of about 22. Measured against management's guidance for full-year earnings per share of $17.30 to $17.90, the forward price-to-earnings ratio is about 20.
Neither figure is outrageous. But both sit well above the low-to-mid-teens multiple Amex carried for much of the past decade, when it was still treated more like a cheap value stock than a premium franchise. Investors are paying up for quality now, not buying it on sale.
Is that a problem? Not necessarily. Management expects earnings per share to grow about 15% this year, and the company keeps buying back stock while paying a dividend that yields about 1.1%. A business compounding earnings in the mid-teens can grow into a 20-times multiple over time, even if the multiple never expands again.
But that is the crux of it. The easy money in American Express -- the part that came from a cheap stock rerating higher as Buffett's original thesis played out -- has largely been made. From here, the returns have to come from the business itself: more spending, more fee-paying members, and loan losses staying low.
Fortunately, that's what Amex is delivering, with second-quarter results due later this month, on July 24, to test the trend again. So while I wouldn't count on the stock repeating its strong five-year run, I think it's still a reasonable buy for patient investors who want a high-quality compounder and don't mind paying a fair -- rather than cheap -- price. Just go in knowing the bargain days are probably behind it.
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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.
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 (AXP +0.39%) has stumbled out of the gate and is down by roughly 10% halfway through the year. However, that can soon change when the global payments company reports earnings on July 24. First-quarter earnings had some good signs, and the valuation has become more enticing thanks to the sell-off.
Image source: Getty Images.
American Express is still growing steadily Fundamentally, American Express is still performing well. An 11% year-over-year increase in revenue came with a 15% year-over-year boost in net income. Amex has held on to double-digit growth rates for a while, as reflected in its 13.1% compound annual growth rate (CAGR) for revenue over the past three years.
CEO Stephen J. Squeri cited "continued momentum across our premium customer base" as a primary catalyst. In an economy where high-income households do most of the spending, Amex is positioned to thrive. Its cards cater to wealthy consumers who are more resilient amid economic uncertainty.
The company is also implementing a growth strategy that has worked well. Part of that playbook has included an extended long-term partnership with the National Basketball Association (NBA) and recently becoming the official payments partner of the National Football League.
Getting in front of sports fans more often can help American Express win over new customers and retain existing ones. The fact that the company extended its NBA partnership is a testament that its current efforts are working.
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The valuation is pretty cheap Continued revenue and net income growth also comes with a cheap valuation, especially if you compare it to other companies that are known for credit cards. American Express trades at a 22 price-to-earnings ratio (P/E), which is considerably lower than Mastercard's and Visa's valuations, which each sit at 31 times earnings.
The businesses are slightly different. American Express issues cards, has a bank, and acts as a merchant acquirer. While Visa and Mastercard have their branding on many credit cards, they don't actually issue credit cards. Banks issue the cards and earn money on any interest or late fees, while Visa or Mastercard act as the payment network. This setup results in Visa and Mastercard having higher profit margins than American Express.
Although these differences exist, the gap should be a little narrower. Visa and Mastercard have three-year revenue CAGRs of 10.9% and 13.9%, respectively. American Express' 13.1% CAGR over that stretch sits firmly in the middle.
Although American Express may not wind up with a 31 P/E, it can experience expansion of its multiple and see marginal gains due to a rising P/E. Second-quarter earnings may serve as a catalyst to reignite the financial stock and help it out of its slump.
American Express is an advertising partner of Motley Fool Money. Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Mastercard, and Visa. The Motley Fool has a disclosure policy.
