American Express Faces Price Target Cut Amid Strong Earnings Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Should l Buy AXP?
American Express Co (AXP) has seen its stock price decline by 3.00%, hitting a 20-day low amid broader market weakness, with the Nasdaq-100 down 0.67% and the S&P 500 down 0.29%.
The decline follows an analyst's price target adjustment, with Evercore ISI lowering the target from $400 to $393 while maintaining an In Line rating. Despite this, American Express projected strong earnings per share between $17.30 and $17.90 for 2026, exceeding analysts' average estimate of $17.41. The company is successfully attracting younger affluent customers, with spending by Gen Z and millennials surpassing that of Gen X for the first time, indicating a positive long-term trend.
This price target cut reflects updated earnings expectations but does not overshadow the company's strong appeal among high-income consumers, who continue to spend robustly despite broader economic challenges.
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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: 299.390
Low
280.00
Averages
379.06
High
425.00
Current: 299.390
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.
American Express Sees Significant Growth in New Accounts
- New Account Growth: In 2025, over 70% of new American Express accounts are fee-paying products, indicating strong consumer demand for premium credit cards, which is expected to further drive revenue growth for the company.
- Young User Demographics: Millennials and Gen Z account for 65% of new accounts, with 75% of high-end Gold and Platinum cardholders being from these demographics, demonstrating the company's success in attracting younger consumers and enhancing future market competitiveness.
- AI Technology Implementation: American Express has rolled out AI coding assistants to over 11,000 engineers, cutting coding time by 30%, and has introduced an AI chatbot handling over a million app inquiries monthly, improving customer service efficiency and reducing operational costs.
- Sustained Revenue Growth: The company has posted 30 consecutive quarters of double-digit net card fee revenue growth, with net card fees reaching a record $10 billion in 2025, reflecting the loyalty and spending power of its premium customer base.
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- Revenue Growth Momentum: The company's net card fee revenue reached a record $10 billion in 2025, achieving 30 consecutive quarters of double-digit growth, with over 70% of new accounts being fee-paying products, indicating strong demand for premium services among high-end customers and further solidifying its market position.
- Youthful Customer Base: In 2025, Millennials and Gen Z accounted for 65% of new account acquisitions, with 75% for premium Gold and Platinum cards, demonstrating that American Express is successfully attracting younger consumers, who are now its core growth engine.
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- New Account Growth: In 2025, over 70% of new American Express accounts are fee-paying products, indicating strong consumer demand for premium credit cards, which is expected to further drive revenue growth for the company.
- Young User Demographics: Millennials and Gen Z account for 65% of new accounts, with 75% of high-end Gold and Platinum cardholders being from these demographics, demonstrating the company's success in attracting younger consumers and enhancing future market competitiveness.
- AI Technology Implementation: American Express has rolled out AI coding assistants to over 11,000 engineers, cutting coding time by 30%, and has introduced an AI chatbot handling over a million app inquiries monthly, improving customer service efficiency and reducing operational costs.
- Sustained Revenue Growth: The company has posted 30 consecutive quarters of double-digit net card fee revenue growth, with net card fees reaching a record $10 billion in 2025, reflecting the loyalty and spending power of its premium customer base.
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Acquisitions and Growth Strategy: The company is focusing on acquisitions, including a $5.15 billion purchase of Brex Inc., to enhance its fintech capabilities and integrate payment systems.
Financial Results and Provisions: In 2025, Capital One's net income was approximately $2.1 billion, with adjusted earnings per share of $3.86, while provisions for credit losses increased significantly due to rising delinquencies.
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- AWS Growth Acceleration: Amazon's cloud unit AWS is no longer lagging behind Microsoft Azure, thanks to its partnership with Anthropic, with expectations for next quarter's margins to exceed market forecasts, boosting investor confidence.
- Cybersecurity Challenges: CrowdStrike has been affected by turmoil in the software market, but the CEO highlighted the positive impact of AI on cyberattacks, indicating long-term growth potential in the security sector, despite high stock prices.
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See More
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- AI Strategy Deployment: American Express has rolled out AI coding assistants to over 11,000 engineers, successfully reducing coding time by 30%, and established an AI chatbot that handles one million application inquiries monthly, showcasing the company's forward-looking approach in AI to enhance customer service efficiency and user experience.
- Revenue Growth Momentum: The company's net card fee revenue reached a record $10 billion in 2025, achieving 30 consecutive quarters of double-digit growth, with over 70% of new accounts being fee-paying products, indicating strong demand for premium services among high-end customers and further solidifying its market position.
- Youthful Customer Base: In 2025, Millennials and Gen Z accounted for 65% of new account acquisitions, with 75% for premium Gold and Platinum cards, demonstrating that American Express is successfully attracting younger consumers, who are now its core growth engine.
- Self-Reinforcing Business Model: By offering high-value rewards and services, American Express attracts premium customers, which in turn drives merchant revenue growth, creating a virtuous cycle that ensures customer loyalty and sustained revenue growth, showcasing strong market competitiveness.
See More
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- Political Influence: A breakthrough in Washington indicated a potential shift in fortunes for these companies, impacting their market performance.
See More
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- Market Reaction: Shares of Hertz Global and Clear Secure fell on Friday following a significant executive order from President Donald Trump.
- Executive Order Impact: The order directs the Department of Homeland Security to compensate Transportation and Security Administration employees, indicating a shift in the dynamics affecting travel-related companies.
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