American Express Raises Revenue Guidance but Maintains Earnings Outlook
American Express reported a strong second-quarter performance with revenue rising 10% year-over-year to $19.6 billion and earnings per share increasing from $4.08 to $4.53. The company raised its full-year 2026 revenue guidance by one percentage point, now projecting growth of over 10%, but kept its EPS forecast unchanged at $17.30–$17.90. The decision not to raise earnings expectations is attributed to increased spending on customer acquisition and technology development. CFO Christophe Le Caillec noted that marketing costs could rise by up to 10% in the second half of 2026, while CEO Steve Squeri highlighted investments such as TheFork acquisition for long-term growth. Despite investor concerns over slowing profit growth relative to revenue expansion and a short-lived stock price drop following the announcement, American Express has historically delivered strong returns on similar strategic investments. Management appears cautious in setting expectations but remains confident about outperforming its own guidance.
Tickers: $AXP
Topics: finance guidance_revision revenue_growth stock_performance