American Express Reports Strong Q3 2026 Results and Raises Full-Year EPS Guidance

Executive Summary

On October 23, 2026, American Express Company filed a Form 8-K under Items 2.02 (Results of Operations and Financial Condition) and 7.01 (Regulation FD Disclosure), announcing its financial results for the third quarter ended September 30, 2026. Following strong year-to-date performance, the company raised its full-year 2026 earnings per share (EPS) guidance.

Key Financial Highlights

• Revenues: Consolidated total revenues net of interest expense reached a record $20.06 billion, up 9% year-over-year (both reported and FX-adjusted) from $18.43 billion in Q3 2025. Growth was fueled by increased Card Member spending, higher net interest income supported by card balance growth, and robust card fee revenue.
• Billed Business: Totaled $454.0 billion, reflecting an 8% YoY increase compared to $421.0 billion in Q3 2025.
• Net Income & EPS:
  • Q3 net income rose 28% YoY to $3.71 billion compared to $2.90 billion in the prior-year period.
  • Diluted EPS increased 31% YoY to $5.42 (vs. $4.14 in Q3 2025).
  • Adjusted EPS was $4.68 (up 13% YoY), which excludes a $982 million pre-tax gain ($751 million after-tax) on the sale of the equity interest in Global Business Travel Group, Inc. (GBTG), net of restructuring charges.
• Credit Quality & Provisions: Consolidated provisions for credit losses stood at $1.0 billion, down from $1.3 billion in Q3 2025, driven by a reserve release versus a reserve build in the prior year, partially offset by higher net write-offs. The net write-off rate improved slightly to 1.8% from 1.9% a year ago.
• Operating Expenses: Consolidated expenses increased 9% YoY to $14.5 billion, primarily reflecting higher variable customer engagement costs tied to spending volumes and the U.S. Platinum Card® refresh, partially offset by lower operating expenses due to the GBTG divestiture gain.
• Effective Tax Rate: The effective tax rate fell to 18.1% from 24.1% in Q3 2025, driven by discrete tax benefits tied to prior-period tax resolutions.

Guidance Update

• FY 2026 EPS Guidance: Raised to $18.30 – $18.60 (reported) and $17.60 – $17.90 (adjusted).
• Revenue Growth: On track to achieve approximately 10% revenue growth for the full year 2026.