Amex (AXP) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
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Should l Buy AXP?
Source: NASDAQ.COM
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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: 318.840
Low
280.00
Averages
379.06
High
425.00
Current: 318.840
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 Thrives Amid Interest Rate Fluctuations
- Interest Rate Impact: American Express benefits from its credit card transaction fee model in both high-interest and high-inflation environments, with projected revenue growth of 9% to 10% in 2026, demonstrating resilience amid economic fluctuations.
- Strong Customer Base: The company added 3.1 million cards last quarter, indicating the effectiveness of its membership model targeting high-income consumers, which enhances customer loyalty and reduces competitive risks.
- Robust Profitability: Expected earnings per share (EPS) for 2026 are projected between $17.30 and $17.90, showcasing the company's profitability and risk resilience in uncertain economic conditions.
- Inflation Protection Mechanism: As inflation rises, American Express's revenue growth will accelerate, further solidifying its market leadership and making it a premium choice for investors.
See More
American Express Shows Strong Performance Amid High Oil Prices
- Strong Earnings Report: American Express reported a 15% year-over-year increase in net income to nearly $3 billion for Q1 2026, with revenue net of interest expense rising 11% to $18.9 billion, indicating resilience amid economic challenges.
- Robust Spending Trends: CEO Stephen Squeri highlighted an 18% growth in luxury retail spending and a 12% increase in premium airline cabin expenditures, demonstrating that the affluent customer base remains unaffected by rising oil prices, thereby reinforcing the company's market position.
- Record Travel Bookings: The company achieved record levels of travel bookings, reflecting strong consumer demand for travel, although the potential impact of higher oil prices on everyday goods and travel costs has yet to be fully realized.
- Cautious Market Reaction: Despite the strong performance, investors remain cautious, with shares down 14% in 2026, indicating concerns about the potential effects of sustained high oil prices on consumer spending.
See More
American Express Reports Strong Q1 Growth Amid Economic Challenges
- Significant Growth: American Express reported an 11% year-over-year increase in net revenue for Q1 2026, reaching $18.9 billion, while net income rose by 15% to nearly $3 billion, demonstrating the company's resilience amid economic challenges.
- Strong Luxury Spending: CEO Stephen Squeri highlighted an 18% growth in retail luxury spending and a 12% increase in premium airline cabin expenditures, indicating that its affluent customer base continues to thrive despite rising oil prices.
- Record Travel Bookings: The company achieved record levels of travel bookings, reflecting strong demand from customers, although the impact of higher oil prices on everyday goods and travel costs may still be emerging.
- Cautious Market Reaction: Despite strong performance, investor confidence in American Express appears low, with shares falling 14% in 2026, indicating ongoing uncertainty regarding the future economic landscape.
See More
Buffett's Retirement Marks New Era for Berkshire Hathaway Leadership
- Leadership Transition: Warren Buffett officially retired as CEO of Berkshire Hathaway on December 31, 2025, with his long-time understudy Greg Abel taking over after more than 25 years at the company; while Buffett remains chairman, Abel now oversees daily operations and the investment portfolio.
- Investment Strategy Shift: Abel is likely to sell Bank of America, previously Buffett's second-largest holding, as it was notably absent from Buffett's list of eight 'forever' stocks in his 2023 annual letter, indicating a significant strategic shift under new leadership.
- Clear Reduction Trend: Berkshire's 13F filings reveal that Buffett has been a consistent seller of Bank of America shares for six consecutive quarters, having reduced his stake by nearly 515.6 million shares, or about 50%, suggesting that BofA is no longer viewed as a core holding.
- Valuation No Longer Attractive: By early 2026, Bank of America shares were trading at a 43% premium to book value, a stark contrast to the 62% discount when Buffett initially invested, and Abel's commitment to value investing may lead to BofA's eventual exit from Berkshire's portfolio.
See More
Warren Buffett Retires, Greg Abel Takes Over as CEO
- Leadership Transition: Warren Buffett officially retired as CEO on December 31, 2025, handing over the reins to Greg Abel, who has been with the company for over 25 years, marking a new era for Berkshire Hathaway despite Buffett remaining as chairman.
- Portfolio Adjustments: In his first letter to shareholders, Abel did not list Bank of America as a long-term holding, indicating a potential shift in investment strategy that could impact Berkshire's value-focused approach.
- Shareholding Changes: Leading up to his retirement, Buffett sold nearly 515.6 million shares of Bank of America over six consecutive quarters, reducing his stake by approximately 50%, suggesting that the stock is no longer viewed as a core asset, which may affect market confidence in Berkshire.
- Market Valuation Shift: By early 2026, Bank of America shares were trading at a 43% premium to book value, contrasting sharply with Buffett's initial investment at a 62% discount, indicating a significant change in market perception that could lead Abel to further divest from the stock.
See More
American Express: Steady Growth and Dividend Returns
- Stable Dividend Growth: American Express offers a dividend yield of 1.15%, which, while modest, has seen an average annual growth rate of 17% over the past five years, demonstrating the company's ongoing commitment to shareholder returns and bolstering investor confidence.
- Strong Performance: In 2025, the company achieved a 10% year-over-year revenue growth, alongside double-digit earnings per share (EPS) growth, indicating its sustained competitiveness and profitability in the market.
- Long-term Investment Strategy: CEO Stephen Squeri reaffirmed the 2026 revenue growth target of 9% to 10% and plans to increase investments in marketing and technology, highlighting the company's focus on future growth opportunities and strategic positioning.
- Reasonable Price Pullback: Although the stock recently pulled back due to management not raising near-term growth expectations, this presents a reasonable entry point for long-term investors, reflecting market recognition of the company's future potential.
See More
American Express Thrives Amid Interest Rate Fluctuations
- Interest Rate Impact: American Express benefits from its credit card transaction fee model in both high-interest and high-inflation environments, with projected revenue growth of 9% to 10% in 2026, demonstrating resilience amid economic fluctuations.
- Strong Customer Base: The company added 3.1 million cards last quarter, indicating the effectiveness of its membership model targeting high-income consumers, which enhances customer loyalty and reduces competitive risks.
- Robust Profitability: Expected earnings per share (EPS) for 2026 are projected between $17.30 and $17.90, showcasing the company's profitability and risk resilience in uncertain economic conditions.
- Inflation Protection Mechanism: As inflation rises, American Express's revenue growth will accelerate, further solidifying its market leadership and making it a premium choice for investors.
See More
American Express Shows Strong Performance Amid High Oil Prices
- Strong Earnings Report: American Express reported a 15% year-over-year increase in net income to nearly $3 billion for Q1 2026, with revenue net of interest expense rising 11% to $18.9 billion, indicating resilience amid economic challenges.
- Robust Spending Trends: CEO Stephen Squeri highlighted an 18% growth in luxury retail spending and a 12% increase in premium airline cabin expenditures, demonstrating that the affluent customer base remains unaffected by rising oil prices, thereby reinforcing the company's market position.
- Record Travel Bookings: The company achieved record levels of travel bookings, reflecting strong consumer demand for travel, although the potential impact of higher oil prices on everyday goods and travel costs has yet to be fully realized.
- Cautious Market Reaction: Despite the strong performance, investors remain cautious, with shares down 14% in 2026, indicating concerns about the potential effects of sustained high oil prices on consumer spending.
See More
American Express Reports Strong Q1 Growth Amid Economic Challenges
- Significant Growth: American Express reported an 11% year-over-year increase in net revenue for Q1 2026, reaching $18.9 billion, while net income rose by 15% to nearly $3 billion, demonstrating the company's resilience amid economic challenges.
- Strong Luxury Spending: CEO Stephen Squeri highlighted an 18% growth in retail luxury spending and a 12% increase in premium airline cabin expenditures, indicating that its affluent customer base continues to thrive despite rising oil prices.
- Record Travel Bookings: The company achieved record levels of travel bookings, reflecting strong demand from customers, although the impact of higher oil prices on everyday goods and travel costs may still be emerging.
- Cautious Market Reaction: Despite strong performance, investor confidence in American Express appears low, with shares falling 14% in 2026, indicating ongoing uncertainty regarding the future economic landscape.
See More
Buffett's Retirement Marks New Era for Berkshire Hathaway Leadership
- Leadership Transition: Warren Buffett officially retired as CEO of Berkshire Hathaway on December 31, 2025, with his long-time understudy Greg Abel taking over after more than 25 years at the company; while Buffett remains chairman, Abel now oversees daily operations and the investment portfolio.
- Investment Strategy Shift: Abel is likely to sell Bank of America, previously Buffett's second-largest holding, as it was notably absent from Buffett's list of eight 'forever' stocks in his 2023 annual letter, indicating a significant strategic shift under new leadership.
- Clear Reduction Trend: Berkshire's 13F filings reveal that Buffett has been a consistent seller of Bank of America shares for six consecutive quarters, having reduced his stake by nearly 515.6 million shares, or about 50%, suggesting that BofA is no longer viewed as a core holding.
- Valuation No Longer Attractive: By early 2026, Bank of America shares were trading at a 43% premium to book value, a stark contrast to the 62% discount when Buffett initially invested, and Abel's commitment to value investing may lead to BofA's eventual exit from Berkshire's portfolio.
See More
Warren Buffett Retires, Greg Abel Takes Over as CEO
- Leadership Transition: Warren Buffett officially retired as CEO on December 31, 2025, handing over the reins to Greg Abel, who has been with the company for over 25 years, marking a new era for Berkshire Hathaway despite Buffett remaining as chairman.
- Portfolio Adjustments: In his first letter to shareholders, Abel did not list Bank of America as a long-term holding, indicating a potential shift in investment strategy that could impact Berkshire's value-focused approach.
- Shareholding Changes: Leading up to his retirement, Buffett sold nearly 515.6 million shares of Bank of America over six consecutive quarters, reducing his stake by approximately 50%, suggesting that the stock is no longer viewed as a core asset, which may affect market confidence in Berkshire.
- Market Valuation Shift: By early 2026, Bank of America shares were trading at a 43% premium to book value, contrasting sharply with Buffett's initial investment at a 62% discount, indicating a significant change in market perception that could lead Abel to further divest from the stock.
See More
American Express: Steady Growth and Dividend Returns
- Stable Dividend Growth: American Express offers a dividend yield of 1.15%, which, while modest, has seen an average annual growth rate of 17% over the past five years, demonstrating the company's ongoing commitment to shareholder returns and bolstering investor confidence.
- Strong Performance: In 2025, the company achieved a 10% year-over-year revenue growth, alongside double-digit earnings per share (EPS) growth, indicating its sustained competitiveness and profitability in the market.
- Long-term Investment Strategy: CEO Stephen Squeri reaffirmed the 2026 revenue growth target of 9% to 10% and plans to increase investments in marketing and technology, highlighting the company's focus on future growth opportunities and strategic positioning.
- Reasonable Price Pullback: Although the stock recently pulled back due to management not raising near-term growth expectations, this presents a reasonable entry point for long-term investors, reflecting market recognition of the company's future potential.
See More
