American Express raises 2026 earnings outlook after record $20.1 billion quarter

American Express reported record third-quarter revenue of $20.1 billion, up 9% from a year earlier. The October 23 filing said higher card-member spending, growth in card balances and stronger card-fee revenue all contributed to the increase during the quarter ended September 30.

Net income rose to $3.7 billion from $2.9 billion, while diluted earnings increased to $5.42 a share from $4.14. Those reported results included a gain connected with the previously announced sale of the company's stake in Global Business Travel Group. Excluding that gain and associated restructuring, American Express reported adjusted net income of $3.2 billion and adjusted earnings of $4.68 a share.

The company's billed business reached $454 billion, an 8% year-over-year increase on a foreign-exchange-adjusted basis. Its provision for credit losses declined to $1.0 billion from $1.3 billion, and the net write-off rate edged down to 1.8% from 1.9%. Expenses grew 9% to $14.5 billion, partly because customer-engagement costs rose with spending and the U.S. Platinum Card refresh.

American Express raised its full-year reported earnings forecast to $18.30 to $18.60 a share and its adjusted range to $17.60 to $17.90. For businesses following household demand, the quarter provides a broad payments-company reading of continued spending growth, while the gap between reported and adjusted earnings shows why the one-time sale gain must be separated from operating performance.

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