American Express Issues Shareholder Letter, Highlights AI Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 25 2026
0mins
Should l Buy AXP?
American Express issues letter to shareholders. "2025 was an excellent year for American Express. Propelled by our loyal customers, our global network of merchants and partners, and our talented colleagues, we delivered some of the best financial results in our long history, building on the strong growth we have sustained since introducing our long term growth aspirations in 2022. Our consistently strong performance has been powered by our Framework for Winning, a strategic roadmap we have had in place since 2018 that lays out our vision, our key business imperatives, and what we need to do to win. We continuously refine and update the Framework as the environment changes, pivoting as needed to take advantage of emerging opportunities. As we look ahead, artificial intelligence's potential to transform commerce is one of those opportunities. We are embarking on an era in which AI-powered agents can discover products and services, make decisions, and complete transactions on behalf of consumers and businesses - from booking travel and making dinner reservations to replenishing business inventories, managing expenses, and completing payments autonomously... We are confident that we can continue delivering strong results and create value for our shareholders over the long term because of our powerful Membership Model, our loyal Card Members, an incredible network of merchants and partners, and our dedicated colleagues around the world who, guided by our Framework for Winning as our north star, make it all possible."
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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: 316.030
Low
280.00
Averages
379.06
High
425.00
Current: 316.030
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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- 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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- 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
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- Rising Loan Defaults: Capital One Financial's Q1 report reveals a loan-loss provision of $4.07 billion, exceeding the $3.77 billion estimate, indicating increasing financial strain on consumers that could impact the company's future profitability.
- Consumer Spending Risks: While consumer spending is up, the rise in bad debt is concerning, with Capital One's charge-offs increasing from $2.74 billion to $3.85 billion, reflecting negative economic impacts that may lead to a contraction in the overall consumer market.
- Restaurant Sector Challenges: Reports from Papa John's and McDonald's indicate that the former experienced a 6.4% decline in same-store sales, while the latter relied heavily on value meals to navigate economic pressures, suggesting even strong brands are not immune to economic slowdowns, potentially affecting their market share.
- Increasing Credit Card Delinquencies: TransUnion reports that the percentage of credit card holders 90 days late on payments has risen to a near two-year high of 2.53%, amidst record credit card balances of $1.12 trillion, raising concerns about consumer financial health that could trigger broader economic repercussions.
See More
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- Earnings Per Share Increase: Adjusted EPS grew 20% to $3.31, surpassing consensus forecasts by $0.22, reflecting effective cost management and profitability, which boosts investor confidence in its future performance.
- Business Model Advantage: Visa's partnership model with banks rather than issuing its own cards allows for rapid expansion and the introduction of value-added services like cybersecurity and data analytics, enhancing its competitive edge and customer stickiness.
- Optimistic Future Outlook: Despite facing inflation and regulatory pressures, Visa raised its full-year revenue and EPS guidance and launched a $20 billion share repurchase program, with expected revenue and EPS growth rates of 11% and 18% CAGR from fiscal 2025 to 2028.
See More
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- Earnings Per Share Increase: The adjusted EPS grew by 20% to $3.31, surpassing the consensus forecast by $0.22, reflecting effective strategies in cost control and revenue enhancement, which bolsters investor confidence.
- Share Buyback Program Launched: Visa announced a new $20 billion stock repurchase program aimed at enhancing shareholder value and boosting market confidence in its future growth, indicating the company's trust in its financial health.
- Long-Term Growth Outlook: Analysts expect Visa's revenue and EPS to grow at CAGRs of 11% and 18% from fiscal 2025 to 2028, and despite facing inflation and regulatory pressures, its strong market position and business model suggest it remains a valuable investment for the future.
See More
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- 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
