American Express Reports Strong Fee Revenue Growth in Q2 Despite Missed Revenue Estimate
American Express (NYSE: AXP) reported second-quarter earnings with strong fee revenue growth despite missing Wall Street's revenue expectations. The company’s shares fell over 4% after the report, but its premium credit card segment showed resilience and pricing power following a $200 annual fee increase on its flagship Platinum Card in early 2026. Fee revenue grew by 15% year-over-year during Q2, with management expecting continued acceleration into late 2026. The company's focus on premium cardholders has proven resilient amid broader economic uncertainty and declining consumer sentiment. American Express reported a stable net write-off rate of 2%, while delinquency rates improved slightly to 1.2%. The firm also noted strong growth in new accounts, with Millennials and Gen Z accounting for the majority of additions. Analysts remain optimistic about long-term earnings potential, projecting an average annual growth rate of around 14% over the next three to five years. Despite a current valuation multiple of approximately 19 times estimated 2026 earnings, American Express continues to benefit from high-margin revenue and brand strength in its premium segment.