American Express Company (NYSE:AXP, XETRA:AEC1) shares fell about 6% on Friday after the company reported second-quarter revenue that came in slightly below Wall Street expectations, despite beating profit estimates.
The company reported earnings per share of $4.53 for the quarter ended June 30, ahead of the consensus estimate of $4.40. Revenue, net of interest expense, increased 10% year over year to $19.64 billion, slightly below analyst expectations of approximately $19.69 billion.
Net income rose 8% to $3.11 billion from $2.89 billion a year earlier, while diluted earnings per share increased 11% from $4.08. Total billed business, a measure of card spending, rose 9% year over year to $455.8 billion.
American Express raised its full-year 2026 revenue growth guidance to 10% from its prior range of 9% to 10%, while maintaining its earnings per share outlook of $17.30 to $17.90.
For the first six months of 2026, revenue, net of interest expense, increased 11% to $38.54 billion, while net income rose 11% to $6.08 billion. Earnings per share for the period climbed 14% to $8.81.
American Express CEO Stephen Squeri highlighted the company's stronger-than-expected first-half performance, noting that revenue grew 10%, earnings per share reached $4.53, and card member spending increased 9%, marking "the highest rate we've seen in three years on an FX-adjusted basis."
Squeri said that the stronger first-half results prompted the company to raise its full-year revenue growth guidance to 10%, while maintaining its earnings per share outlook of $17.30 to $17.90.
He added that American Express plans to reinvest the outperformance into growth initiatives "given the significant opportunities we see ahead."
He also highlighted accelerating spend and revenue growth driven by investments in the company's value proposition, growth in its US Consumer Platinum portfolio, strengthening credit performance, and continued customer acquisition, particularly among Millennials and Gen Z consumers.