Economy April 23, 2026 07:07 AM

American Express Tops Q1 Estimates as Affluent Cardholders Maintain Spending

Billed business grows 9% while revenue and earnings outpace analyst expectations amid continued investment in customer acquisition

By Hana Yamamoto
American Express Tops Q1 Estimates as Affluent Cardholders Maintain Spending

American Express reported first-quarter results that exceeded analyst forecasts as higher-income customers continued to spend on travel and discretionary items. Billed business rose 9% to $428 billion on a foreign exchange-adjusted basis, revenue climbed 10% to $18.9 billion, and adjusted earnings per share reached $4.28, ahead of consensus. The company increased provisions for credit losses to $1.3 billion and highlighted ongoing investments to attract younger customers.

Key Points

  • Affluent customer spending led to a 9% FX-adjusted increase in billed business to $428 billion, benefiting travel and discretionary categories - impacts retailers and consumer goods companies serving high-end buyers.
  • Revenue climbed 10% to $18.9 billion and EPS reached $4.28, exceeding the LSEG consensus of $4.02 - signals strength for payment networks and financials.
  • American Express is increasing marketing, digital and rewards investments to attract younger Gen Z customers, reflecting a strategic push to diversify and expand its cardholder base.

April 23 - American Express outperformed Wall Street expectations for first-quarter profit as cardholders with higher incomes sustained spending on travel and discretionary categories. The credit card issuer recorded robust growth in billed business and revenue, underscoring continued demand for premium payment products.

Billed business - a metric that captures total spending on American Express cards - expanded 9% on a foreign exchange-adjusted basis to $428 billion for the quarter. That rise coincided with a 10% increase in revenue to $18.9 billion.

On a per-share basis, American Express reported earnings of $4.28 for the three months ended March 31, up from $3.64 in the same period a year earlier. The company’s profit beat the average analyst forecast of $4.02 per share, based on estimates compiled by LSEG.

Management described card member activity as unusually strong for the period. "Card Member spending grew 9% FX-adjusted, the highest quarterly growth in three years, driven by strong demand and engagement with our premium products," said Stephen Squeri, the company’s chief executive, in a statement.

Market reaction was modestly positive, with American Express shares trading up approximately 1.2% in premarket activity following the release of results.

From a credit perspective, the company set aside $1.3 billion in consolidated provisions for credit losses during the quarter, compared with $1.2 billion a year earlier. Provisions are a gauge of credit performance and reflect management’s posture toward potential future losses.

American Express has also continued to allocate resources to long-term customer acquisition and engagement. The company said it has stepped up investments in marketing, digital capabilities and rewards programs in recent years to broaden appeal and draw younger Gen Z customers into the cardholder base.

Observers and market participants often look to American Express as an early indicator of consumer spending trends at U.S. card firms. In that role, resilient AmEx results are read as a sign that luxury and high-end consumers are continuing to spend, which can provide support to retailers and consumer goods companies focused on that segment.


Key data points:

  • Billed business rose 9% to $428 billion (FX-adjusted).
  • Revenue increased 10% to $18.9 billion for the quarter.
  • Reported earnings per share were $4.28 versus $3.64 a year earlier; consensus was $4.02.
  • Consolidated provisions for credit losses were $1.3 billion, up from $1.2 billion a year ago.

This quarter’s results provide a snapshot of cardholder behavior and the company’s strategy execution, while also reflecting management choices around credit loss provisioning and investment in growth initiatives.

Risks

  • Higher consolidated provisions for credit losses - $1.3 billion versus $1.2 billion a year ago - indicate management is building reserves against potential defaults, a factor for financial sector credit performance.
  • Elevated interest rates and concerns around inflation driven by higher gasoline prices create an uncertain macroeconomic backdrop that could affect consumer spending and credit performance, relevant to retailers, consumer goods firms and card issuers.

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