American Express (AXP) Stock Rises 15.4% Driven by Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
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: 336.390
Low
280.00
Averages
379.06
High
425.00
Current: 336.390
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
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 Breaks Ground on New Headquarters at 2 World Trade Center
- Groundbreaking Ceremony: American Express hosted a groundbreaking ceremony for its new headquarters at 2 World Trade Center in Lower Manhattan, attended by hundreds of government officials, community members, and partners, showcasing the company's strong commitment to future growth and investment.
- Building Scale and Impact: The new headquarters will span nearly 2 million square feet and stand approximately 1,250 feet tall, expected to create over 3,200 direct and indirect construction-related jobs in New York City, contributing an estimated $5.9 billion to the city's economy.
- History and Vision: American Express President Denise Pickett emphasized that this project is more than just a new headquarters; it reaffirms the company's commitment to New York City, aiming to inspire innovation and collaboration while empowering employees to thrive in an optimal environment.
- Rebuilding and Future: The project is seen as a significant step in the redevelopment of the World Trade Center, with New York City Mayor Zohran Kwame Mamdani highlighting it as an investment in the local economy and sustainability, reflecting confidence in the city's future.
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American Express and General Motors Upgraded to Buy Amid Strong Consumer Trends
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- Optimistic Outlook for GM: General Motors (GM) was upgraded to Buy, with analysts noting a 30% stock rally since last August, yet valuation remains depressed; the forward P/E ratio has decreased from 6.3 to 5.95, with 2026 EBIT growth projected at 14% and EPS growth at 18%, indicating strong long-term growth potential.
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Rising Global Inflation Heightens Credit Card Risks
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- Surge in Credit Card Debt: The Federal Reserve indicates that U.S. borrowers' credit card debt reached nearly $1.25 trillion at the end of Q1, up 5.9% year-over-year, suggesting that consumers increasingly rely on credit cards for basic needs, which may lead to rising default risks in the future.
- Increase in Delinquent Accounts: The percentage of credit card accounts at least 90 days delinquent has reached an 18-year high of 13.2%, reflecting the financial strain on consumers coping with high inflation, which could directly impact the profitability of credit card issuers.
- Subprime Borrower Risks: Capital One Financial reports that about a quarter of its cardholders have FICO scores below 660, indicating a higher risk of defaults; with ongoing inflation, its Q2 delinquency and charge-off rates are expected to rise significantly, potentially negatively affecting its stock price.
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Rising Inflation's Impact on Credit Card Lending in the U.S.
- Inflation Surge: Consumer prices in the U.S. rose 4.2% year-over-year in May, primarily driven by higher energy costs, indicating increased economic pressure that may lead consumers to rely more on credit cards for basic needs, thus impacting the credit card lending market.
- Credit Card Debt Spike: The Federal Reserve reports that U.S. credit card debt reached nearly $1.25 trillion in Q1, up 5.9% year-over-year, highlighting consumers' increasing reliance on credit cards to manage rising living costs.
- Delinquency Risk Increase: The percentage of credit card accounts at least 90 days delinquent has hit an 18-year high of 13.2%, signaling greater default risks for credit card issuers, particularly those lending to subprime borrowers.
- Market Disparity: While Bank of America and Wells Fargo report stable delinquency rates, subprime lenders like Capital One and Synchrony Financial may face significant challenges due to their higher proportions of low credit score borrowers, indicating a potential rise in defaults.
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- Walmart Market Performance: Walmart's stock increased by 17% in the past year, surpassing the 12.9% growth of the supermarket sector, with its robust store network and digital transformation enhancing customer experience, despite potential short-term profitability impacts from fuel costs and policy uncertainties.
- American Express Growth Potential: American Express shares have risen 13.4% over the past year, supported by strong spending from Millennials and Gen Z, with strategic acquisitions and digital payment solutions enhancing long-term growth prospects, although high leverage and credit loss provisions could pressure margins.
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- Strong Stock Performance: Delta Air Lines has seen its stock rise over 20% in 2026, reflecting investor optimism regarding premium travel demand and improving industry pricing, which is expected to support the company during the busy summer travel season.
- Optimistic Revenue Expectations: Wall Street anticipates Delta's Q2 revenue to reach $17.74 billion, representing over 6% year-over-year growth, although EPS is expected to decline from $2.10 last year to $1.50, showcasing the company's resilience amid high labor and fuel costs.
- Advantage in Premium Demand: Delta has successfully differentiated itself from competitors reliant on price-sensitive domestic leisure travelers by emphasizing premium seating demand and strong international travel recovery, ensuring more stable profitability.
- Fuel Costs and Outlook: While management previously warned that fuel expenses would remain elevated, recent declines in oil prices have improved the industry's outlook, and investors will closely monitor management's commentary on third-quarter demand trends and full-year earnings guidance.
See More
American Express Breaks Ground on New Headquarters at 2 World Trade Center
- Groundbreaking Ceremony: American Express hosted a groundbreaking ceremony for its new headquarters at 2 World Trade Center in Lower Manhattan, attended by hundreds of government officials, community members, and partners, showcasing the company's strong commitment to future growth and investment.
- Building Scale and Impact: The new headquarters will span nearly 2 million square feet and stand approximately 1,250 feet tall, expected to create over 3,200 direct and indirect construction-related jobs in New York City, contributing an estimated $5.9 billion to the city's economy.
- History and Vision: American Express President Denise Pickett emphasized that this project is more than just a new headquarters; it reaffirms the company's commitment to New York City, aiming to inspire innovation and collaboration while empowering employees to thrive in an optimal environment.
- Rebuilding and Future: The project is seen as a significant step in the redevelopment of the World Trade Center, with New York City Mayor Zohran Kwame Mamdani highlighting it as an investment in the local economy and sustainability, reflecting confidence in the city's future.
See More
American Express and General Motors Upgraded to Buy Amid Strong Consumer Trends
- American Express Upgrade: Analysts upgraded American Express (AXP) to Buy, citing strong consumer spending and improving credit trends, with Q2 revenue growth expected at 9-10% and EPS of $17.30-$17.90, setting a price target of $422, indicating a 21% upside.
- Optimistic Outlook for GM: General Motors (GM) was upgraded to Buy, with analysts noting a 30% stock rally since last August, yet valuation remains depressed; the forward P/E ratio has decreased from 6.3 to 5.95, with 2026 EBIT growth projected at 14% and EPS growth at 18%, indicating strong long-term growth potential.
- Nvidia Downgrade: Nvidia (NVDA) was downgraded to Sell, as analysts warn that the market is derisking its long-term AI dominance amid increasing competition from Chinese firms, with a shift in AI compute demand from training to inference, reducing reliance on Nvidia silicon.
- Datadog Rating Adjustment: Datadog (DDOG) was downgraded from Buy to Hold; despite a 32% year-over-year revenue growth in Q1, analysts believe the stock is overvalued, with the market pricing in nearly 28% annual growth, while the company's high R&D intensity of 42.1% may hinder near-term profitability.
See More
Rising Global Inflation Heightens Credit Card Risks
- Inflation Pressure Intensifies: The U.S. Bureau of Labor Statistics reports a 4.2% year-over-year increase in consumer prices for May, primarily driven by rising energy costs, indicating persistent inflationary pressures that could reduce consumer spending and impact credit card issuers' performance.
- Surge in Credit Card Debt: The Federal Reserve indicates that U.S. borrowers' credit card debt reached nearly $1.25 trillion at the end of Q1, up 5.9% year-over-year, suggesting that consumers increasingly rely on credit cards for basic needs, which may lead to rising default risks in the future.
- Increase in Delinquent Accounts: The percentage of credit card accounts at least 90 days delinquent has reached an 18-year high of 13.2%, reflecting the financial strain on consumers coping with high inflation, which could directly impact the profitability of credit card issuers.
- Subprime Borrower Risks: Capital One Financial reports that about a quarter of its cardholders have FICO scores below 660, indicating a higher risk of defaults; with ongoing inflation, its Q2 delinquency and charge-off rates are expected to rise significantly, potentially negatively affecting its stock price.
See More
Rising Inflation's Impact on Credit Card Lending in the U.S.
- Inflation Surge: Consumer prices in the U.S. rose 4.2% year-over-year in May, primarily driven by higher energy costs, indicating increased economic pressure that may lead consumers to rely more on credit cards for basic needs, thus impacting the credit card lending market.
- Credit Card Debt Spike: The Federal Reserve reports that U.S. credit card debt reached nearly $1.25 trillion in Q1, up 5.9% year-over-year, highlighting consumers' increasing reliance on credit cards to manage rising living costs.
- Delinquency Risk Increase: The percentage of credit card accounts at least 90 days delinquent has hit an 18-year high of 13.2%, signaling greater default risks for credit card issuers, particularly those lending to subprime borrowers.
- Market Disparity: While Bank of America and Wells Fargo report stable delinquency rates, subprime lenders like Capital One and Synchrony Financial may face significant challenges due to their higher proportions of low credit score borrowers, indicating a potential rise in defaults.
See More
Analyst Blog Highlights: Amazon, Walmart, American Express
- Amazon Performance Highlights: Amazon's stock has risen 12.8% over the past year, outperforming the Internet - Commerce industry at 2.5%, driven by international expansion and diversified revenue streams, although capital expenditures for AI infrastructure may pressure margins.
- Walmart Market Performance: Walmart's stock increased by 17% in the past year, surpassing the 12.9% growth of the supermarket sector, with its robust store network and digital transformation enhancing customer experience, despite potential short-term profitability impacts from fuel costs and policy uncertainties.
- American Express Growth Potential: American Express shares have risen 13.4% over the past year, supported by strong spending from Millennials and Gen Z, with strategic acquisitions and digital payment solutions enhancing long-term growth prospects, although high leverage and credit loss provisions could pressure margins.
- Natural Grocers Strong Performance: Natural Grocers' stock has surged 38.5% in the last six months, with a market cap of $765 million, benefiting from positive comparable sales growth and a flexible expansion model, despite risks from soft consumer spending and intensifying competition.
See More
Delta Air Lines Poised for Strong Q2 Earnings Amid Premium Travel Demand
- Strong Stock Performance: Delta Air Lines has seen its stock rise over 20% in 2026, reflecting investor optimism regarding premium travel demand and improving industry pricing, which is expected to support the company during the busy summer travel season.
- Optimistic Revenue Expectations: Wall Street anticipates Delta's Q2 revenue to reach $17.74 billion, representing over 6% year-over-year growth, although EPS is expected to decline from $2.10 last year to $1.50, showcasing the company's resilience amid high labor and fuel costs.
- Advantage in Premium Demand: Delta has successfully differentiated itself from competitors reliant on price-sensitive domestic leisure travelers by emphasizing premium seating demand and strong international travel recovery, ensuring more stable profitability.
- Fuel Costs and Outlook: While management previously warned that fuel expenses would remain elevated, recent declines in oil prices have improved the industry's outlook, and investors will closely monitor management's commentary on third-quarter demand trends and full-year earnings guidance.
See More
