American Express Posts Fastest Card Spending Growth in Three Years
The payments company posted $4.28 a share in the first quarter, up 18% year over year, as card-member spending accelerated to its strongest pace since 2023.
American Express (AXP) reported first-quarter 2026 earnings per share of $4.28, an 18% increase from $3.64 a year earlier, as card-member spending growth hit its highest quarterly rate in three years.
The results marked a continuation of the revenue and earnings acceleration that defined the company's 2025 fiscal year. Total revenues net of interest expense reached $18.9 billion, up 11% year over year on a reported basis and 10% on an FX-adjusted basis, building on the prior quarter's 10% reported growth. Billed business — the company's measure of card-member spending — rose 10% reported and 9% FX-adjusted, the strongest quarterly pace since early 2023.
Travel and entertainment spending led the charge, growing 12% reported and 9% FX-adjusted, accelerating from 9% and 8% respectively in the fourth quarter of 2025. Goods and services spending held steady at 10% reported growth. The spending gains flowed through to net income of $3.0 billion, up 15% year over year, while return on average equity climbed to 35.2% from 33.6% a year ago.
International Card Services was the standout segment, with revenues surging 20% to $3.5 billion and pretax income more than doubling to $781 million, as expense growth of just 6% lagged well behind the top line. U.S. Consumer Services, the largest unit by revenue, posted 11% growth to $9.1 billion, though pretax income rose only 1% as a 14% jump in expenses — driven by the U.S. Platinum Card refresh and higher variable customer engagement costs — compressed margins. Commercial Services revenues grew 7% but pretax income slipped 2% as provisions and expenses outpaced the top line.
Average fee per card climbed 14% to $127, continuing a multi-quarter acceleration from $111 a year earlier, even as the pace of new card acquisitions moderated to 3.1 million from 3.4 million in the year-ago period. Total card balances stood at $213.3 billion, up 8% year over year, while the net interest yield expanded to 8.4% from 8.2%.
Credit quality remained stable. The consolidated net write-off rate fell to 2.0% from 2.1% a year earlier, and the 30-plus-days past due rate held at 1.3%, unchanged from both the prior quarter and the year-ago period. Provisions for credit losses rose 9% to $1.3 billion, reflecting higher net write-offs and a smaller reserve release.
American Express reaffirmed its full-year 2026 guidance for revenue growth of 9% to 10% and EPS of $17.30 to $17.90, unchanged from the outlook it provided with fourth-quarter results. The company returned $8.7 billion to shareholders through dividends and buybacks over the trailing 12 months ended March 31, including a 16% dividend increase to $0.95 a share effective with the first-quarter declaration. Average diluted shares outstanding fell 2% year over year to 686 million. The Stress Capital Buffer requirement remains at the regulatory minimum of 2.5% through September 2027, giving the company continued room to deploy capital.