American Express Continues Strong Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 59 minutes ago
0mins
Source: Fool
- Significant Earnings Growth: American Express reported $18.9 billion in revenue and $4.28 earnings per share for Q1, marking increases of 10% and 18% respectively, surpassing analysts' expectations of $18.6 billion and about $4 per share, demonstrating the company's resilience amid economic uncertainty.
- High-End Consumer Spending Rebounds: Despite economic pressures, restaurant and airline spending rose by 9% and 8% respectively, indicating the continued strong purchasing power of affluent customers, which further solidifies American Express's market position.
- Stable Outlook: While the market remains cautious about future marketing and technology expenditures, American Express still anticipates revenue growth of 9% to 10% by 2026, reflecting management's confidence in the company's long-term growth prospects.
- Investor Caution: Despite strong performance, the stock price fell due to failure to raise future guidance, highlighting a gap between investor expectations for future growth and the company's actual projections.
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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: 321.900
Low
280.00
Averages
379.06
High
425.00
Current: 321.900
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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- Scholarship Support: The Smart Futures for Small Business Scholarships provide eligible U.S. small business employees with up to $1,000 for AI certification courses, aiming to enhance employee skills through education, thereby driving overall business development.
- Diverse Course Offerings: The training program offers multiple tracks, including AI Generalist, Digital Marketing, and Digital Customer Success, enabling small business employees to flexibly apply AI in various roles, enhancing work efficiency and customer experience.
- Real-World Application Cases: Participants like Katy Kinch from Buttermilk Bakeshop noted that AI tools allowed her to analyze customer feedback and identify trends from home, demonstrating the immense potential of AI in small businesses and further driving business growth.
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American Express Continues Strong Performance
- Significant Earnings Growth: American Express reported $18.9 billion in revenue and $4.28 earnings per share for Q1, marking increases of 10% and 18% respectively, surpassing analysts' expectations of $18.6 billion and about $4 per share, demonstrating the company's resilience amid economic uncertainty.
- High-End Consumer Spending Rebounds: Despite economic pressures, restaurant and airline spending rose by 9% and 8% respectively, indicating the continued strong purchasing power of affluent customers, which further solidifies American Express's market position.
- Stable Outlook: While the market remains cautious about future marketing and technology expenditures, American Express still anticipates revenue growth of 9% to 10% by 2026, reflecting management's confidence in the company's long-term growth prospects.
- Investor Caution: Despite strong performance, the stock price fell due to failure to raise future guidance, highlighting a gap between investor expectations for future growth and the company's actual projections.
See More
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- Affluent Customer Spending: Despite a challenging economic backdrop, spending from affluent customers remained robust, with restaurant spending up 9% and airline spending up 8%, indicating the strength of American Express's customer base during economic fluctuations.
- Future Growth Outlook: The company anticipates revenue growth between 9% and 10% for 2026, with earnings per share projected between $17.30 and $17.90; although the market was disappointed by the lack of an upward revision, it still reflects stable growth potential.
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- Debt Repayment Trend: A report from VantageScore indicates that households are paying down debt and decreasing revolving credit balances, suggesting a trend of consumer deleveraging supported by seasonal inflows such as tax refunds.
- Private Credit Risk Management: Hassett noted that despite recent stress in private credit, it is not expected to reach a level requiring collective discussion, as related assets remain liquid and investors can withdraw funds to address management frustrations.
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See More
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- AI Skills Training Program: American Express, in collaboration with Generation, has launched the AI Upskilling for Small Business initiative aimed at helping small businesses globally acquire practical AI skills, which is expected to significantly enhance their market competitiveness by improving operational efficiency.
- Scholarship Support: The Smart Futures for Small Business Scholarships provide eligible U.S. small business employees with up to $1,000 for AI certification courses, aiming to enhance employee skills through education, thereby driving overall business development.
- Diverse Course Offerings: The training program offers multiple tracks, including AI Generalist, Digital Marketing, and Digital Customer Success, enabling small business employees to flexibly apply AI in various roles, enhancing work efficiency and customer experience.
- Real-World Application Cases: Participants like Katy Kinch from Buttermilk Bakeshop noted that AI tools allowed her to analyze customer feedback and identify trends from home, demonstrating the immense potential of AI in small businesses and further driving business growth.
See More
American Express Continues Strong Performance
- Significant Earnings Growth: American Express reported $18.9 billion in revenue and $4.28 earnings per share for Q1, marking increases of 10% and 18% respectively, surpassing analysts' expectations of $18.6 billion and about $4 per share, demonstrating the company's resilience amid economic uncertainty.
- High-End Consumer Spending Rebounds: Despite economic pressures, restaurant and airline spending rose by 9% and 8% respectively, indicating the continued strong purchasing power of affluent customers, which further solidifies American Express's market position.
- Stable Outlook: While the market remains cautious about future marketing and technology expenditures, American Express still anticipates revenue growth of 9% to 10% by 2026, reflecting management's confidence in the company's long-term growth prospects.
- Investor Caution: Despite strong performance, the stock price fell due to failure to raise future guidance, highlighting a gap between investor expectations for future growth and the company's actual projections.
See More
American Express Exceeds Earnings Estimates, Outlook Remains Positive
- Strong Earnings Report: American Express reported first-quarter revenue of $18.9 billion, a 10% increase year-over-year, with earnings per share at $4.28, surpassing analysts' expectations of $4, demonstrating the company's resilience amid economic uncertainty.
- Affluent Customer Spending: Despite a challenging economic backdrop, spending from affluent customers remained robust, with restaurant spending up 9% and airline spending up 8%, indicating the strength of American Express's customer base during economic fluctuations.
- Future Growth Outlook: The company anticipates revenue growth between 9% and 10% for 2026, with earnings per share projected between $17.30 and $17.90; although the market was disappointed by the lack of an upward revision, it still reflects stable growth potential.
- Investor Confidence Recovery: Despite a decline in stock price following the earnings report, investor confidence appears to be gradually returning as the market recognizes the company's long-term performance capabilities, indicating American Express's ability to perform well across various economic environments.
See More
Buffett's Investment Portfolio Revealed
- Portfolio Concentration: As of December 31, 2025, over 70.9% of Buffett's Berkshire Hathaway portfolio is concentrated in five stocks: Apple, American Express, Bank of America, Coca-Cola, and Chevron, highlighting a highly concentrated investment strategy and risk management approach.
- Apple Holdings: Apple is Berkshire's largest holding with a market value of $61.9 billion, representing 22.6% of the portfolio; despite selling over 75% of its Apple shares in recent years, it remains a core asset, reflecting Buffett's commitment to long-term investments.
- Historical Investment Returns: Buffett first bought Coca-Cola in 1988 and American Express in 1963, and these long-held stocks have significantly appreciated over decades, becoming key pillars of Berkshire's portfolio, showcasing his investment foresight and patience.
- Investment Strategy Advice: To emulate Buffett's success, The Motley Fool recommends that investors build a diversified portfolio of at least 25 stocks, hoping to identify some big winners that can dominate their portfolios and drive wealth growth.
See More
Surge in Consumer Credit Card Spending
- Surge in Spending: Kevin Hassett, Director of the White House National Economic Council, highlighted in an interview that consumer spending on gas and other goods has surged, indicating signs of economic recovery, even as households are reducing borrowing and revolving balances.
- Debt Repayment Trend: A report from VantageScore indicates that households are paying down debt and decreasing revolving credit balances, suggesting a trend of consumer deleveraging supported by seasonal inflows such as tax refunds.
- Private Credit Risk Management: Hassett noted that despite recent stress in private credit, it is not expected to reach a level requiring collective discussion, as related assets remain liquid and investors can withdraw funds to address management frustrations.
- Market Stability Confidence: He emphasized that while some investors may be disappointed with returns in private credit, he does not foresee any overflow effects into the broader market, indicating that the industry's structure is vigilant against systemic risks.
See More
2026 NYC Small Business Expo Set for May 7
- Major Attendance Expected: The 2026 NYC Small Business Expo is set for May 7 at the Javits Convention Center, anticipated to draw thousands of entrepreneurs, startup founders, and small business owners from the New York metropolitan area, fostering networking and business growth opportunities.
- Support from Major Brands: Hosted by Verizon Business, the event is backed by prominent sponsors including American Express and GEICO, highlighting strong support for the success and growth of America's small business ecosystem.
- Release of Small Business Report: The Expo will unveil the latest State of Small Business Report, offering insights into the opportunities, challenges, and economic trends affecting small businesses in 2026, including key topics like AI adoption and access to capital.
- Rich Media Opportunities: Media attendees will have access to live interviews, entrepreneur success stories, and high-energy networking visuals, providing direct engagement with thousands of business leaders and industry experts, enhancing coverage of the small business economy.
See More
