American Express (AXP) Stock Rises 15.4% Driven by Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy AXP?
Source: NASDAQ.COM
- Significant Revenue Growth: American Express reported a 9% year-over-year revenue increase in the first nine months of 2025, driven by new product launches and strategic partnerships, showcasing strong performance amid a rebound in travel and entertainment spending, thereby solidifying its market position.
- Strong Cash Flow: The company returned $2.9 billion through buybacks and dividends in Q3, with a ROE of 33.4%, exceeding the industry average, indicating robust capital return strategies that enhance investor confidence.
- Rising Demand for Surgical Robots: Intuitive Surgical's stock has gained 6.6% over the past six months, with 240 placements of the da Vinci 5 system in the U.S., driving a 19% year-over-year increase in global procedures, reflecting strong demand in the medical device market.
- Outstanding Microcap Performance: Daily Journal Corp.'s stock surged 61.8% in the past six months, supported by a market capitalization of $894.14 million and a $493 million marketable securities portfolio, demonstrating strong asset management capabilities and growth potential.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 312.770
Low
280.00
Averages
379.06
High
425.00
Current: 312.770
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its range of products and services includes credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services; banking and other payment and financing products and services, including deposits and non-card lending; merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, and network services. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers, and business partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-Term Growth Potential: Delta's management projects adjusted earnings per share for 2026 to be between $6.50 and $7.50, implying about 20% growth at the midpoint, with the current stock price around $72 trading at approximately 10 times earnings, presenting a favorable investment opportunity.
See More
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- Stable Apple Holdings: Berkshire maintained its stake in Apple at approximately 228 million shares, which, while below the historical peak of over 900 million shares, still represents 22% of its equity portfolio, reflecting confidence in Apple's long-term value.
- Significant Google Investment: Berkshire's share count in Alphabet surged from about 17.85 million to roughly 58 million, pushing the position's value to nearly $17 billion, indicating CEO Abel's strong confidence and willingness to invest in tech stocks.
- Exploration of New Investment Areas: The new $2.65 billion stake in Delta Air Lines and a minor position in Macy's signal Abel's readiness to enter sectors previously avoided by Buffett, further diversifying the investment portfolio.
- Aggressive Sell-offs: Berkshire exited positions in Amazon, Visa, Mastercard, and others, while slashing its stake in Constellation Brands by 95%, indicating Abel's intent to reshape the investment strategy and reinforce his personal style.
See More
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- Leadership Transition: Warren Buffett officially handed over the CEO role to Greg Abel at the end of 2025, while remaining as executive chairman and largest shareholder of Berkshire Hathaway, ensuring his influence over the $284 billion equity portfolio continues.
- Portfolio Overview: As of December 31, 2025, Berkshire's portfolio shows Apple at 22.6% and American Express at 20.5%, highlighting Buffett's definition of a 'wonderful business' and his long-term investment strategy.
- Coca-Cola's Competitive Edge: Coca-Cola, a core holding since 1988, exemplifies Buffett's investment philosophy with its unmatched global brand and strong market moat, demonstrating enduring business value and competitive advantage.
- American Express's Resilience: American Express, functioning as both a payment network and a bank, showcases strong recession resistance due to its premium brand and customer loyalty, with Buffett investing since 1964, reflecting his preference for stable cash flows.
See More
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- Portfolio Concentration: Berkshire Hathaway's portfolio is heavily concentrated in five key stocks—Apple, American Express, Coca-Cola, Bank of America, and Chevron—which together account for approximately 60% of total investments, indicating a strong reliance on these core assets.
- Buffett's Cautious Strategy: Despite a strong stock market, Buffett remains cautious in his investments, refraining from significantly increasing exposure to emerging technologies and industries, reflecting his preference for familiar sectors.
- Significant Cash Flow Growth: While the portfolio has not changed dramatically, Berkshire's cash flow has grown significantly, indicating that the company can still achieve strong financial performance through stable core assets.
- Successful Investment Philosophy: Buffett emphasizes that having just one top-performing stock, like Apple, can dramatically enhance overall portfolio performance, underscoring the importance of focusing on familiar areas of expertise.
See More
Berkshire Hathaway's Future Under Greg Abel: Growth Prospects and Stability
- Leadership Transition: Warren Buffett stepped down as CEO at the end of 2025, with successor Greg Abel reaffirming at the recent shareholder meeting his commitment to maintaining Berkshire's culture and policies, ensuring stability and continued growth for the company in the future.
- Reasonable Valuation: With a forward-looking P/E ratio of 22, close to its five-year average of 21, Berkshire Hathaway presents a reasonable valuation in the current market environment, attracting long-term investors' interest.
- Strong Growth Outlook: The stock has averaged a 10.3% annual growth over the past five years, and it is expected to maintain similar growth in the next five years, potentially increasing its price from $476 to around $767, showcasing robust investment potential.
- Diversified Business Strength: Berkshire's numerous defensive subsidiaries, such as those in insurance and energy, can maintain stability during economic downturns, while its substantial stock portfolio (including Coca-Cola and Apple) continues to provide steady cash flow for the company.
See More
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- Earnings Miss: Capital One reported Q1 revenue of $15.2 billion and an adjusted EPS of $4.42, down 2% year-over-year and missing analyst expectations of $15.4 billion and $4.55, indicating increasing financial strain on consumers.
- Rising Loan Loss Provisions: The company's loan-loss provision surged to $4.07 billion, exceeding estimates of $3.77 billion and significantly up from $2.37 billion a year ago, highlighting escalating bad debt risks that could impact future profitability.
- Increasing Delinquency Rates: TransUnion reported that the percentage of credit card holders 90 days late on payments rose to 2.53%, nearing a two-year high, reflecting consumer vulnerability amid record-high credit card balances and ongoing spending pressures.
- Widespread Industry Challenges: The struggles are not limited to Capital One, as both Papa John's and McDonald's reported revenue and earnings misses, underscoring the broader economic challenges affecting various sectors, which could lead to weakened overall market performance.
See More
