American Express (NYSE:AXP) executives highlighted what they described as a “very strong start to the year” during the company’s first-quarter 2026 earnings call, pointing to double-digit growth in revenue and card member spending, continued strength in premium products, and stable, “best-in-class” credit performance. Management also said it plans to increase investments in marketing and technology while reaffirming full-year guidance.
Quarterly performance: revenue up 11%, EPS up 18%
Chairman and CEO Stephen Squeri said first-quarter revenue grew 11% (10% on an FX-adjusted basis), while earnings per share were $4.28, up 18% year-over-year. Card member spending rose 10% reported, which Squeri called the highest quarterly growth rate in three years.
Spending trends: goods, services, and travel all contributed
Le Caillec said overall spending momentum reflected “an acceleration in U.S. Platinum spend following the refresh last year” and benefits from the company’s global footprint, including FX tailwinds and strong international growth.
By category, Le Caillec said travel and entertainment (T&E) spending rose 9% FX-adjusted, while goods and services grew 8% FX-adjusted. He also cited specific pockets of strength, including retail spending up 11% FX-adjusted and luxury retail merchant spending up 18%. Restaurant spending increased 9% again in the quarter, and airline spending grew 8%.
However, Le Caillec noted that airline growth softened in the “last few weeks of March and into April,” attributing the change to travel disruptions from the Middle East conflict. In Q&A, he said the softness was most visible in an increased volume of refunds being processed, but added that the impact was “not that large” and “not something that you should worry too much about.”
Le Caillec also said American Express was able to rebook “something like 18,000” customers who had tickets to the Middle East during the disruption, and he noted increased engagement with partner CLEAR at airports.
On fuel costs, he said higher average ticket prices and fuel spending were visible, but fuel represents “less than 2%” of billed business and was “not very visible” in overall spending trends. He added that the company did not see “any discontinuity” across products, cohorts, or geographies.
Premium products, younger cohorts, and international growth
Squeri said American Express continues to see “strong demand and engagement” for premium products. He pointed to accelerated spending growth in the U.S. Platinum portfolio following its refresh, alongside “high retention rates” after a fee increase took effect. He also said millennial and Gen Z spending growth remained robust and that “globally, over 70% of new accounts are on fee-paying products.”
Le Caillec said the company acquired 3.1 million new cards in the quarter and also cited continued momentum in attracting younger customers. In the international business, he said International Card Services (ICS) was up 13% FX-adjusted, and spending in that segment rose 20%. Squeri said international remained the company’s fastest-growing segment, with billings up double digits for the 20th consecutive quarter on an FX-adjusted basis.
On the U.S. Platinum refresh, Squeri said most of the spending lift is coming from existing card members due to the portfolio’s size. He referenced a slide showing U.S. Consumer Platinum accelerating by 6 percentage points and said “the majority of that…is coming from the back book,” calling it a “very strong sign.”
Le Caillec also cited engagement metrics tied to membership assets. He said lodging spend on Fine Hotels + Resorts and The Hotel Collection programs was up 50% year-over-year, and dining spend at U.S. Resy restaurants increased 20%.
Credit, balances, and deposits: stable metrics and reserve release
Both Squeri and Le Caillec said credit performance remains strong. Squeri described results as “excellent and best in class,” while Le Caillec said delinquency and write-off rates remain below 2019 levels. Le Caillec said delinquency rates were flat sequentially and write-off rates were slightly down, consistent with expectations for “generally stable credit metrics throughout 2026.”
Provision expense was $1.3 billion, including a reserve release of $24 million, which Le Caillec said was “mostly driven by lower ending card balances versus Q4.” He added that reserves reflect uncertainty in the macroeconomic environment.
Total balances increased 7% year-over-year FX-adjusted. Le Caillec said American Express has updated presentation terminology: what was previously referred to as total loans and card member receivables is now labeled total balances, and the company has combined card member loans and receivables into a single “card balances” line in financial statements, reflecting product evolution such as Pay Over Time.
Le Caillec noted about a 1 percentage point impact on balance growth from small business co-brand held-for-sale portfolios. As those portfolios are exited over the course of the year, he said American Express expects a “low single-digit impact to spend growth in SME starting in Q2” until the company laps the exits, but “negligible impact to pre-tax income.” Squeri later said the Amazon and Lowe’s book will roll off as the year goes on, creating “a slight drag on revenue” but “zero impact on PTI.”
Le Caillec said net interest income (NII) rose 12% FX-adjusted and is expected to continue outpacing balance growth for the year. He also pointed to deposit growth, saying high-yield savings and direct CD balances were up 9% year-over-year, with millennials and Gen Z comprising over half of accounts and about one-third of balances.
Investments, partnerships, AI initiatives, and guidance
Management said it will increase investment spending to capitalize on growth opportunities. Squeri said American Express decided to increase investments in marketing and technology “based on our strong results to date and our confidence going forward,” while reaffirming full-year 2026 guidance of 9% to 10% revenue growth and EPS of $17.30 to $17.90.
Le Caillec said marketing spend was $1.5 billion in the quarter, flat year-over-year, but the company now expects marketing expenses to grow in the mid-single digits for the full year. He described the incremental spending as directed toward additional “investment opportunities” tied to acquisition efforts, which had not been funded previously.
In Q&A, Squeri said stronger-than-expected performance gave management room to “move those ROI thresholds down” and fund more initiatives while staying within guidance. Le Caillec also cited a couple of items that benefited expenses in the quarter: a court decision regarding VAT in Europe and a small gain recorded upon completing the acquisition of the other half of a joint venture in Switzerland. He said those factors increased confidence in expense trends and helped “release investment capacity.”
On partnerships and membership value propositions, Squeri highlighted new and renewed sports and entertainment agreements and said the company announced a multi-year global partnership with the NFL that will make American Express the league’s official payments partner beginning with the 2026 season. He also discussed airport lounge openings and expansions in multiple locations and said Fine Hotels + Resorts and The Hotel Collection programs added 300 properties recently accepted from about 1,400 applicants.
Squeri also emphasized product and technology initiatives, including what he called the “most significant one-year commercial product expansion in the company’s history,” with plans for eight new or enhanced U.S. commercial products, benefits, and capabilities in 2026 starting with the Graphite Business Cash Unlimited Card. He said the roadmap includes a corporate cash back card and expense management software. In Q&A, he said the company plans to relaunch or launch Center in the coming months and noted the acquisition of a company called Hypercard, which he said would be integrated into Center.
On AI, Squeri said American Express is positioning itself for “agentic commerce” and introduced the Amex Agentic Commerce Experiences (ACE) developer kit to enable integration of American Express cards into AI-powered transactions “with trust and control.” He also discussed an “industry-first” commitment called Amex Agent Purchase Protection, designed to protect registered agent purchases. Addressing fraud concerns, Squeri argued that in an agentic commerce world “data is king” and said American Express’s closed-loop model provides “as perfect information as you’re going to get.”
Capital return was another theme. Le Caillec said American Express returned $2.3 billion to shareholders in the quarter through $0.7 billion of dividends and $1.7 billion of share repurchases, and he noted the company increased its dividend by 16%.
Looking ahead, executives repeatedly pointed to momentum in spending and premium engagement while acknowledging uncertainty in the macro and geopolitical backdrop. “While the macro and geopolitical environment remains uncertain,” Squeri said, American Express believes it is “well-positioned” due to its premium focus, spend- and fee-centric model, and strong portfolio quality.
About American Express (NYSE:AXP)
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.
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