American Express Reports Strong Fee Revenue Growth Despite Miss on Revenue
Credit card company American Express (NYSE: AXP) reported second-quarter earnings before the market opened on July 24, with EPS of $4.53 exceeding expectations but revenue net of interest falling short at $19.64 billion. Shares dropped over 4% following the report. Despite this, fee revenue—particularly from premium credit and charge cards—showed robust growth of 15% year-over-year in Q2, with management expecting acceleration into late 2026. American Express raised its annual fee on the Platinum Card by $200 at the start of 2026 but saw no significant backlash from customers. The company's premium card portfolio is now growing faster than any other consumer segment in the U.S., even as broader economic conditions and consumer sentiment have weakened. The firm also reported strong credit performance, with a stable net write-off rate at 2% and declining delinquency rates. New accounts added were largely fee-based, especially among younger demographics like Millennials and Gen Z.
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