American Express Raises Revenue Guidance but Maintains Earnings Outlook
American Express (NYSE: AXP) reported a strong second-quarter performance, with revenue rising 10% year-over-year to $19.6 billion and per-share earnings increasing from $4.08 to $4.53. The company raised its full-year revenue guidance for 2026 by one percentage point, now expecting growth of over 10%. However, it kept its annual earnings-per-share (EPS) forecast unchanged at $17.30–$17.90. CFO Christophe Le Caillec explained that the decision to maintain EPS guidance is due to increased spending on customer acquisition and technology development. Marketing costs are expected to rise by 10% in the second half of 2026, while card-member services expenses surged 50%, and data processing outlays grew 13%. CEO Steve Squeri also highlighted plans for a strategic investment in TheFork, an online restaurant reservation platform. Despite investor concerns reflected by a more than 4% drop in AXP shares following the announcement, American Express has historically delivered strong long-term growth from similar investments. Over the past decade—excluding pandemic-impacted 2020—the company consistently increased revenue and profits.
Topics: American Express financial guidance revenue growth technology investment