American Express reported first-quarter results that outpaced Wall Street forecasts, driven by stronger-than-expected consumer spending among its affluent cardholders. Management said broad-based growth in goods and services, led by retail and luxury purchases, supported a 9% rise in billed business to $428 billion on a foreign exchange-adjusted basis, and helped lift quarterly revenue 10% to $18.9 billion.
Against a backdrop of elevated interest rates and concerns about inflation pressures from rising gasoline prices, company executives emphasized the relative insulation provided by American Express’s wealthier customer mix. "Very strong growth across the board," Chief Financial Officer Christophe Le Caillec told Reuters in an interview. He highlighted retail as a standout, saying: "I think in goods and services, the highlight is retail spend (which) was up 11% and when you look at luxury retail, it’s up 18%."
The card issuer reported earnings of $4.28 per share for the quarter ended March 31, beating consensus estimates of $4.02 per share, according to LSEG data. Analysts at William Blair characterized the results as evidence of persistence in consumer activity, writing that "Resiliency continued into the March quarter. Overall results were solid as billings growth accelerated."
Within the travel and entertainment category, American Express saw airline spending increase 8% despite notable interruptions to global travel flows and higher fares tied to airspace closures and fuel supply issues connected to the Iran conflict. Le Caillec acknowledged that the company experienced "a lot of refund requests" toward the end of the quarter because of the war in the Middle East, creating some noise in airline volumes, but he nevertheless described overall performance in the segment as "very strong."
On credit quality, the company set aside $1.3 billion in consolidated provisions for credit losses for the quarter, up from $1.2 billion a year earlier. Le Caillec defended the underlying credit picture, saying: "Credit numbers are incredibly strong... we see no noise or concerns there."
American Express has increased spending in recent years on marketing, enhancements to digital services and its rewards programs with an eye toward attracting younger cohorts, including Gen Z, as long-term cardholders. Executives and market observers see the firm's results as an early indicator of spending patterns for U.S. card issuers more broadly because of its scale and consumer mix.
Shares of American Express initially climbed in premarket trading but later reversed course amid broader market weakness, finishing the session down 1.1% as volatility persisted.
Looking ahead, the company reaffirmed its targets for 2026, maintaining an expected revenue growth rate of 9% to 10% and reiterating a full-year adjusted earnings-per-share range of $17.30 to $17.90. The guidance underscores management’s confidence in ongoing demand from its core customer base and the effectiveness of its investments in customer acquisition and engagement.
Summary takeaways:
- Billed business grew 9% to $428 billion on a foreign exchange-adjusted basis; revenue rose 10% to $18.9 billion.
- Retail spending was a standout, up 11% overall and 18% in luxury retail, while airline spend rose 8% despite travel disruptions.
- Credit provisions edged up to $1.3 billion but management described credit trends as strong and without concerning signals.
Context for market participants: American Express’s quarterly performance offers a near-term read on consumer demand dynamics in higher-income segments and signals how retail and travel categories are performing in a higher-rate, higher-gas-price environment. The company’s continued investment in digital capabilities and rewards seeks to diversify its customer base and secure longer-term account economics by attracting younger customers.