Amex projects upbeat 2026 profit on steady spending by affluent customers
It expects revenue to grow in the range of 9 to 10% – versus expectations of about 9%
[NEW YORK] American Express (Amex) forecast annual profit largely above Wall Street expectations on Friday (Jan 30), underscoring resilient spending by the credit card giant’s largely-affluent customer base amid broader economic uncertainty.
The company expects its earnings per share for 2026 to be between US$17.30 and US$17.90.
The midpoint of the range is above analysts’ average projection of US$17.41 a share, estimates compiled by the London Stock Exchange Group showed.
Revenue is expected to grow in the range of 9 to 10 per cent – versus expectations of about 9 per cent.
Analysts have said Amex’s focus on the premium segment insulates the company from a broader slowdown in spending, and helps deliver solid growth.
“As demonstrated in our results, our investments are paying off – driving increased customer demand, engagement and loyalty,” CEO Stephen Squeri said.
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Billed business, a measure of spending on Amex cards, rose by 9 per cent to US$445.1 billion in the fourth quarter.
The company in December reported a 9 per cent growth in US retail consumer spending around the key Thanksgiving holiday week, ahead of an Adobe Analytics report of a 7.7 per cent rise for the broader spending.
Its shares gained 24.7 per cent in 2025, outperforming rivals Visa’s 11 per cent and Mastercard’s 8.4 per cent rise.
American Express’ profit came in at US$3.53 a share in the three months ended Dec 31. That compares with US$3.04 a share from a year earlier. Revenue grew by 10 per cent to US$18.98 billion.
Investor attention is on how Amex will navigate a potential one-year cap on credit card interest rates – proposed by US President Donald Trump to address affordability concerns.
Banking and card-industry bodies have pushed back strongly against the proposal, arguing that it would limit credit availability to everyday Americans.
Analysts, though, have said such a move would require legislation and has slim odds of passage. The proposal weighed on financial stocks and sent them tumbling earlier in January. REUTERS
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