American Express (NYSE:AXP) Issues Quarterly Earnings Results

American Express Company (NYSE:AXP) issued its quarterly earnings results on Friday. The payment services company reported $3.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.54 by ($0.01), Briefing.com reports. American Express had a return on equity of 33.41% and a net margin of 14.97%.The company had revenue of ($17,139.00) million for the quarter, compared to analysts’ expectations of $18.91 billion. During the same quarter in the previous year, the business earned $3.04 EPS. The company’s revenue for the quarter was up 10.5% on a year-over-year basis. American Express updated its FY 2026 guidance to 17.300-17.900 EPS.

Here are the key takeaways from American Express’ conference call:

• Management guided 2026 to 9%–10% revenue growth and EPS of $17.30–$17.90 and announced a 16% raise in the quarterly dividend to $0.95, signaling confidence in sustained earnings and shareholder returns.
• American Express reported record 2025 results — revenue $72 billion (+10%), EPS $15.38 (+15% ex‑Accertify), net card fees reached $10 billion, ROE was 34%, and $7.6 billion of capital was returned to shareholders.
• The company is materially stepping up investments (marketing $6.3B, technology ~$5B annually) and expects VCE-to-revenue around 44% in 2026, which supports long‑term growth but raises near‑term expense levels.
• Management is reallocating marketing toward premium, fee‑paying products (notably the new U.S. Platinum), lifting the fee‑paying mix by ~8 percentage points with high retention and strong app-driven engagement that is boosting spend.
• Management flagged risks including macro/political uncertainty (e.g., proposed 10% credit cap), intensified commercial/SMB competition and middle‑market softness, and potential seasonal variation in credit provisions.

American Express Stock Performance

American Express stock opened at $352.14 on Friday. American Express Company has a 1-year low of $220.43 and a 1-year high of $387.49. The company has a current ratio of 1.61, a quick ratio of 1.59 and a debt-to-equity ratio of 1.78. The firm has a market capitalization of $242.57 billion, a PE ratio of 23.63, a price-to-earnings-growth ratio of 1.50 and a beta of 1.15. The firm’s 50 day simple moving average is $369.37 and its 200 day simple moving average is $343.84.

American Express Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 10th. Investors of record on Friday, January 2nd will be paid a dividend of $0.82 per share. The ex-dividend date of this dividend is Friday, January 2nd. This represents a $3.28 annualized dividend and a yield of 0.9%. American Express’s payout ratio is currently 22.01%.

Key Stories Impacting American Express

Here are the key news stories impacting American Express this week:

• Positive Sentiment: Management set FY2026 EPS guidance of $17.30–$17.90 and revenue guidance roughly $78.7B–$79.5B, which sits at/above Street revenue expectations and implies mid‑high single‑digit growth — a key reason investors are focusing on the outlook rather than the quarterly miss.
• Positive Sentiment: Q4 revenue grew ~10% y/y and card‑member spending remained strong, supporting the company’s growth narrative and the confident 2026 outlook. AXP Stock Falls Despite Revenue Beat After Q4 Earnings Report
• Positive Sentiment: Board approved a meaningful dividend increase (reported as ~16%), which is supportive for income‑oriented investors and signals confidence in cash flow. American Express Posts Strong 2025 Results, Raises Dividend
• Neutral Sentiment: Analysts have mixed/timely coverage — some firms reiterate buy ratings citing attractive risk/reward and valuation upside, which could limit downside if results stay in-line with guidance. American Express: Attractive Risk-Reward, Solid Growth Outlook
• Negative Sentiment: Q4 EPS of $3.53 slightly missed consensus (by ~$0.01–$0.04 depending on source), and some headlines emphasize the profit miss as a near‑term catalyst for selling pressure. Scorecard: Grading American Express Q4 Earnings
• Negative Sentiment: Rising customer‑engagement and operating costs were called out on the call and in analyst notes as the main drag on margin expansion, which clouds near‑term EPS trajectory. AXP Q4 Earnings Lag Estimates on Rising Customer Engagement Costs
• Negative Sentiment: Regulatory risk headlines (discussion of a potential credit‑card rate cap) and a strategic shift to higher‑fee premium cards (more marketing to Platinum vs. no‑fee products) create execution and political/regulatory uncertainty that can pressure sentiment. American Express, credit card provider to the wealthy, wants even more high spenders CEO on rate cap

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in AXP. Brighton Jones LLC raised its holdings in shares of American Express by 24.4% in the 4th quarter. Brighton Jones LLC now owns 6,481 shares of the payment services company’s stock valued at $1,924,000 after acquiring an additional 1,273 shares in the last quarter. EntryPoint Capital LLC bought a new position in shares of American Express in the first quarter worth approximately $278,000. Kestra Advisory Services LLC raised its stake in American Express by 1.9% in the first quarter. Kestra Advisory Services LLC now owns 57,744 shares of the payment services company’s stock valued at $15,536,000 after purchasing an additional 1,070 shares in the last quarter. Strategies Wealth Advisors LLC bought a new stake in American Express during the first quarter valued at approximately $210,000. Finally, AlphaQuest LLC lifted its position in American Express by 141.7% during the first quarter. AlphaQuest LLC now owns 1,095 shares of the payment services company’s stock valued at $295,000 after purchasing an additional 642 shares during the last quarter. 84.33% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

AXP has been the topic of several research reports. DZ Bank upgraded American Express from a “sell” rating to a “hold” rating and set a $340.00 target price on the stock in a research note on Tuesday, October 21st. Evercore ISI set a $400.00 price objective on American Express in a report on Tuesday, January 6th. Barclays boosted their price objective on American Express from $355.00 to $367.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 6th. JPMorgan Chase & Co. increased their target price on shares of American Express from $360.00 to $385.00 and gave the stock a “neutral” rating in a research report on Monday, January 12th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $420.00 target price on shares of American Express in a research note on Tuesday, January 6th. Nine research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $353.95.

About American Express

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.