American Express (Amex) reported first-quarter 2026 net income of $2.97bn, up 15% from $2.6bn in the same quarter last year.
According to a Reuters report, the results beat Wall Street expectations. The report said higher spending by affluent customers on travel and entertainment helped lift card spending growth to its highest level in three years.
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Billed business, which measures total spending on AmEx cards, increased 10% year-on-year to $428bn for the quarter ended 31 March 2026.
Consolidated total revenues, net of interest expense, rose 11% year-on-year to $18.9bn, compared with $16.9bn in Q1 2025.
Amex said the increase was driven mainly by higher Card Member spending. It also pointed to higher net interest income supported by growth in card balances, alongside strong growth in card fees.
Earnings per share (EPS) rose 18% to $4.28, up from $3.64 a year earlier.
Amex chairman and CEO Stephen Squeri said: “We had a very strong start to the year, reflecting continued momentum across our premium customer base and execution of our proven growth strategy.
“We delivered 10% FX-adjusted revenue growth and 18% EPS growth in the quarter. Card Member spending grew 9% FX-adjusted, the highest quarterly growth in three years, driven by strong demand and engagement with our premium products. Our credit performance remained excellent.
“Our consistently strong performance reinforces that our strategy is working well, supported by our ongoing investments in growth initiatives.”
Consolidated provisions for credit losses were $1.3bn, compared with $1.2bn a year ago. The rise was attributed to higher net write-offs and a lower reserve release than in the prior-year quarter.
Consolidated expenses increased 11% year-on-year to $13.9bn. Amex attributed the increase to higher variable customer engagement costs linked to higher Card Member spending. The company also cited the US Platinum Card refresh, increased use of travel and lifestyle benefits, and higher operating expenses.
Amex has increased investment in marketing, digital capabilities and rewards programmes in recent years. The company recently agreed to acquire expense management platform Hypercard to expand AI capabilities in its commercial services operations.
