American Express Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 24 July 2026: press release. Guidance figures: 1 raised, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 10 percent: Revenue net of interest expense reached $19.6 billion, up 10 percent, driven by Card Member spending, higher net interest income from card balances, and card fees. Source
• Diluted EPS rose 11 percent: Diluted EPS was $4.53, up from $4.08, on net income of $3.1 billion compared with $2.9 billion a year ago. Source
• Spending growth at three-year high: Card Member spending grew 9 percent on an FX-adjusted basis, the highest rate management has seen in three years. Source
• Reserve release lowered provisions: The provision decline reflected a reserve release this quarter against a reserve build a year earlier, partly offset by higher net write-offs. Source
• Engagement and benefit costs drove growth: Higher variable engagement costs from increased spending, the Platinum Card refresh, and benefit usage drove expense growth, along with higher operating expenses. Source
• TheFork acquisition proposed: Proposed acquisition of TheFork, a restaurant booking platform with 50,000 restaurants in 11 countries, was announced. Source

“We had another excellent quarter, with 10 percent revenue growth, EPS of $4.53, and Card Member spending growth of 9 percent, the highest rate we've seen in three years on an FX-adjusted basis.”

Stephen J. Squeri | Chairman and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 revenue growth guidance moved from 9 to 10 percent to 10 percent. Source
• Guidance kept: Full-year 2026 EPS guidance of $17.30 to $17.90 was carried forward without change. Source
• New: Proposed acquisition of TheFork, a European restaurant booking platform, was announced. Source
• New: A new global partnership with ALL Accor, a booking and loyalty platform for Accor's 45 brands, was announced. Source
• New: American Express became Official Payments Partner of Fanatics in select online and retail locations. Source
• New: An expense management platform was piloted with an initial group of middle-market customers. Source

Results and growth drivers

• Revenue rose 10 percent: Revenue net of interest expense reached $19.6 billion, up 10 percent, driven by Card Member spending, higher net interest income from card balances, and card fees. Source
• Diluted EPS rose 11 percent: Diluted EPS was $4.53, up from $4.08, on net income of $3.1 billion compared with $2.9 billion a year ago. Source
• Six-month EPS rose 14 percent: Six-month diluted EPS was $8.81, compared with $7.71 a year earlier, an increase of 14 percent. Source

Card Member spending and demand

• Spending growth at three-year high: Card Member spending grew 9 percent on an FX-adjusted basis, the highest rate management has seen in three years. Source
• Billed business reached $455.8 billion: Billed business was $455.8 billion, up 9 percent year-over-year and 9 percent FX-adjusted, from $416.3 billion a year ago. Source
• Platinum portfolio grew fastest: Management said the Platinum portfolio is now the fastest growing within the U.S. Consumer business. Source
• Value propositions drove accelerated spend: Management linked accelerated spend and revenue growth to investments made in its value propositions. Source
• Younger customers added: Management said it attracted a large number of new customers, particularly Millennials and Gen-Zs, whom it describes as carrying greater lifetime value. Source

“Six months into the year, we’re seeing stronger momentum than we expected.”

Stephen J. Squeri | Chairman and Chief Executive Officer

Credit provisions and write-offs

• Provisions fell to $1.1 billion: Consolidated provisions for credit losses were $1.1 billion, down from $1.4 billion a year earlier. Source
• Reserve release lowered provisions: The provision decline reflected a reserve release this quarter against a reserve build a year earlier, partly offset by higher net write-offs. Source
• Write-off rate flat at 2.0 percent: The net write-off rate was 2.0 percent, unchanged from a year earlier. Source

Expenses and tax rate

• Expenses rose 12 percent: Consolidated expenses were $14.5 billion, up 12 percent year-over-year. Source
• Engagement and benefit costs drove growth: Higher variable engagement costs from increased spending, the Platinum Card refresh, and benefit usage drove expense growth, along with higher operating expenses. Source
• Tax rate rose to 23.6 percent: The effective tax rate was 23.6 percent, up from 18.7 percent, which management attributed mainly to discrete tax benefits in the prior year. Source

“We are competing from a position of strength and generating momentum that enables us to continue investing in our differentiated Membership Model”

Stephen J. Squeri | Chairman and Chief Executive Officer

Earnings and share count

• Pretax income rose 15 percent: Pretax income was $4,071 million, compared with $3,550 million a year earlier, an increase of 15 percent. Source
• Diluted share count fell 3 percent: Average diluted common shares were 679 million, down from 699 million; the six-month average was 682 million, down from 701 million. Source

Products, partnerships and benefits

• Fanatics payments partnership: American Express became the official payments partner for Fanatics in select online and retail locations worldwide. Source
• Accor global partnership announced: A global partnership with ALL Accor covers Accor's portfolio of 45 worldwide brands, including Raffles, Fairmont and Sofitel. Source
• Delta SkyMiles travel benefits added: New travel benefits were introduced for Delta SkyMiles Card Members. Source
• Apple Pay redemption enabled: Membership Rewards points redemption was enabled for U.S. Card Members checking out with Apple Pay. Source
• Expense platform pilot started: The new expense management platform was piloted with an initial group of middle-market customers. Source
• Mobile app ranked first: The company ranked first in the J.D. Power 2026 U.S. credit card mobile app and online satisfaction studies. Source

Strategy and acquisition

• TheFork acquisition proposed: Proposed acquisition of TheFork, a restaurant booking platform with 50,000 restaurants in 11 countries, was announced. Source
• Membership Model investment continues: Management said current momentum enables continued investment in its differentiated Membership Model. Source

Coming up, as management said on 24 July 2026

• Reinvest outperformance in growth: Management plans to reinvest the first-half outperformance in growth initiatives, citing significant opportunities ahead. Source

Figures management reported

Risks management discussed

• Financial: Net write-offs rose year-over-year, partly offsetting the reserve release that lowered provisions. Source
• Operational: Variable engagement costs, the Platinum Card refresh, benefit usage and higher operating expenses all increased expense levels. Source

Earlier plans management reported on

• Ahead: Management said first-half momentum was stronger than it expected, which led to the raised revenue growth guidance. Source
• Not stated: The prior quarter said management decided to increase investments in marketing and technology for long-term growth.

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.