0000004962false00000049622026-07-242026-07-240000004962us-gaap:CommonStockMember2026-07-242026-07-240000004962axp:A3.433FixedToFloatingRateNoteMember2026-07-242026-07-240000004962axp:A3.835FixedToFloatingRateNoteMember2026-07-242026-07-24
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2026
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
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| New York |
1-7657 |
13-4922250 |
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
200 Vesey Street,
New York, New York 10285
(Address of principal executive offices and zip code)
(212) 640-2000
(Registrant’s telephone number, including area code)
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| Not Applicable |
| (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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| Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
| Common Shares (par value $0.20 per Share) |
AXP |
New York Stock Exchange |
| 3.433% Fixed-to-Floating Rate Notes due May 20, 2032 |
AXP32 |
New York Stock Exchange |
| 3.835% Fixed-to-Floating Rate Notes due June 16, 2034 |
AXP34 |
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure
The following information is furnished under Item 2.02 – Results of Operations and Financial Condition and Item 7.01 – Regulation FD Disclosure:
On July 24, 2026, American Express Company (the “Company”) reported financial results for the second quarter of 2026. A copy of the Company’s earnings release is attached to this report as Exhibit 99.1 and additional information relating to the Company’s financial results for the second quarter of 2026 is attached to this report as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
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| Exhibit |
Description |
| 99.1 |
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| 99.2 |
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| 104 |
The cover page of this Current Report on Form 8-K, formatted as inline XBRL. |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Current Report on Form 8-K (including the exhibits attached hereto) includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address the Company’s current expectations regarding business and financial performance, including management’s guidance for 2026 and long-term growth aspiration, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:
•the Company’s ability to achieve its 2026 earnings per common share (EPS) guidance and grow EPS in the future consistent with its growth aspiration, which will depend in part on revenue growth, credit performance, credit reserve and expense levels and the effective tax rate remaining consistent with current expectations and the Company’s ability to continue investing in growth initiatives (such as its brand, value propositions, coverage, marketing, technology, partnerships and talent), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs as well as the following: macroeconomic and geopolitical conditions, including a slowdown in U.S. or global economic growth, changes to consumer and business confidence, higher rates of unemployment and wide-scale layoffs, impacts from the Middle East conflict and other international hostilities, deteriorations in global trade and the effects of announced or future tariffs, changes in interest rates, inflation, supply chain issues, energy costs, market volatility, and fiscal and monetary policies; the effects of technology changes and the adoption of artificial intelligence (AI); the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings,
impairments and changes in reserves; issues impacting brand perceptions and the Company’s reputation; changes in the competitive environment and an inability to realize benefits from new and extended sponsorships; impacts related to acquisitions, divestitures, cobrand relationships and other partners; and the impact of regulation and litigation, which could affect the profitability of the Company’s business activities, limit the Company’s ability to pursue business opportunities, require changes to business practices or alter the Company’s relationships with Card Members, partners and merchants;
•the Company’s ability to achieve its 2026 revenue growth guidance and grow revenues net of interest expense in the future consistent with its growth aspiration, which could be impacted by, among other things, the factors identified above and in the subsequent paragraphs, as well as the following: spending volumes not being consistent with expectations, including spending by U.S. and international consumer Card Members across age cohorts (including Millennial and Gen-Z customers) and business Card Members and dining, airline and other travel & entertainment spending volumes, such as due to uncertain macroeconomic and geopolitical conditions; an inability to address competitive pressures, attract and retain customers, invest in and enhance the Company’s Membership Model of premium products, differentiated services and partnerships, successfully refresh card products and introduce new features and capabilities, grow banking relationships with customers and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the impacts of portfolio sales; the effects of regulatory initiatives, including pricing regulation, such as pricing for card acceptance and interest rate and fee caps, and network regulation; merchant coverage growing less than expected or the reduction of merchant acceptance or perceptions of coverage; increased surcharging, steering, suppression or other differential acceptance practices with respect to the Company’s products; merchant discount rates changing from the Company’s expectations; and changes in foreign currency exchange rates;
•net card fee revenues not growing consistent with the Company’s expectations for 2026 and beyond, which could be impacted by, among other things, the pace of Card Member acquisition activity and demand for the Company’s fee-based products; higher Card Member attrition rates; the success and timing of the Company’s refreshes of its card products (including acquisition and retention levels of the U.S. Consumer and Business Platinum Card portfolios); a decrease in the ability and desire of Card Members to pay card fees, such as due to macroeconomic conditions or as a result of changes in card fees; the competitive environment and the perception of the value provided by premium cards; regulatory initiatives impacting card fees; and the Company’s inability to deliver and enhance benefits and services, innovate with respect to its products and develop attractive premium value propositions for new and existing customers;
•net interest income and the growth of net interest income relative to the growth of Card balances and Other loans outstanding, being higher or lower than expectations, which could be impacted by, among other things, the behavior and financial strength of Card Members and their actual spending, borrowing and paydown patterns; the effectiveness of the Company’s strategies to enhance Card Member value propositions, grow lending with premium customers and capture a greater share of Card Members’ spending and borrowings, and attract new, and retain existing, customers; the Company’s ability to effectively introduce and enhance lending features on its products and manage underwriting risk; governmental actions to cap credit card interest rates; changes in benchmark interest rates, including where such changes affect the Company’s assets or liabilities differently than expected; the Company’s ability to grow deposits, including from Card Members and across age cohorts (including Millennial and Gen-Z customers); continued volatility and other changes in capital and credit market conditions and the availability and cost of capital; credit actions, including line size and other adjustments to credit availability; the yield on revolve-eligible Card balances and Other loans differing from current expectations; and loss or impacts to cobrand relationships, including portfolio sales;
•future credit performance, the level of future delinquency, reserve and write-off rates and the amount and timing of future reserve builds and releases, which will depend in part on macroeconomic factors such as actual and projected unemployment rates and GDP, as well as the occurrence of events that increase macroeconomic uncertainty or volatility; the ability and willingness of Card Members to pay amounts owed to the Company; changes in Card balances and Other loans outstanding, such as from the implementation of the Company’s strategy to capture spending and borrowings, or from changes in consumer behavior that affect customer balances (e.g., paydown and revolve rates); changes in the levels of customer acquisitions and the credit profiles of new customers acquired; financial stress and volume of bankruptcies of Card Members and business partners; credit-related fraud levels; acquisitions or sales of balances or card portfolios; the magnitude of seasonal fluctuations in credit metrics; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; the effects of the resumption of student loan repayments; collections capabilities and recoveries of previously written-off balances; and the impact of the usage of debt settlement companies;
•the actual amount to be spent on Card Member rewards and services and business development in 2026 and beyond, and the relationship of these variable customer engagement expenses to revenues, which could be impacted by the investments and enhancements that the Company makes with respect to its value propositions, including its rewards programs and product benefits, such as in connection with card refreshes (e.g., benefits on the refreshed U.S. Consumer and Business Platinum Cards), to make them attractive to Card Members and prospective customers, potentially in a manner that is not cost-effective; changes in the level of Card Member spending and spending patterns (including the level of spend in bonus categories), the redemption of rewards and offers (including travel redemptions) and usage of travel-, lifestyle- and business-related benefits; the costs related to reward point redemptions; levels of Card Member acquisitions on premium card products; changes in the Company’s models or assumptions used to estimate these expenses; new and renegotiated contractual obligations with business partners; the Company’s ability to identify and negotiate partner-funded value for Card Members; and the pace and cost of the expansion of the Company’s global lounge collection;
•the actual amount the Company spends on marketing in 2026 and beyond and the effectiveness and efficiency of its marketing spending, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance, including the levels of demand for the Company’s products; the Company’s ability to realize marketing efficiencies, including as a result of investments in its product value propositions and the use of technology, such as the personalization of offers; management’s investment optimization process and its ability to develop premium value propositions and drive customer demand; management’s identification and assessment of attractive investment opportunities and its decisions regarding the timing of investments; the receptivity of Card Members and prospective customers to advertising and customer acquisition initiatives; and costs associated with brand advertising and new and extended sponsorships;
•the Company’s ability to control operating expenses, including relative to revenue growth, and the actual amount spent on operating expenses in 2026 and beyond, which could be impacted by, among other things, salary and benefit expenses to attract and retain talent; the Company’s ability to realize operational efficiencies, including through increased scale and automation and continued adoption of artificial intelligence technologies; management’s ability to balance expense control and investments in the business, and its decisions regarding spending in such areas as technology, business and product development, sales force, premium servicing and AI initiatives; the Company’s ability to innovate efficient channels of customer interactions and the willingness of Card Members to self-service and address issues through digital channels; restructuring activity; fraud costs; inflation and supply chain issues; increased technology costs, including AI usage and investments in technology innovations and system upgrades; expenses related to enterprise risk management and compliance and consulting, legal and other professional services fees, including as a result of the Company’s growth, litigation and
internal and regulatory reviews; the impact of changes in foreign currency exchange rates on costs; regulatory assessments; the level of M&A activity and related expenses; information security or cybersecurity incidents; the payment of fines, penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; the performance of Amex Ventures and other of the Company’s investments; and impairments of goodwill or other assets;
•the Company’s tax rate not remaining consistent with expectations, which could be impacted by, among other things, further changes in tax laws and regulation, the implementation by jurisdictions of the Organization for Economic Cooperation and Development’s global minimum tax guidelines (including safe harbors for U.S. multinational enterprises), the Company’s geographic mix of income, unfavorable tax audits, assessments and tax litigation outcomes, and the occurrence or nonoccurrence of other discrete tax items;
•changes affecting the Company’s plans regarding the return of capital to shareholders, which will depend on factors such as the Company’s capital levels and regulatory capital ratios; new rulemakings and guidance from the Federal Reserve and other banking regulators, including changes to regulatory capital requirements, such as from recent regulatory capital rule proposals, and changes to the tailoring of enhanced prudential standards applicable to banking organizations; results of operations and financial condition; credit ratings and rating agency considerations; results of the stress testing and capital planning process; and the economic environment and market conditions in any given period;
•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure and competitor settlements that may materially impact the prices charged to merchants that accept American Express cards; merchant acceptance, surcharging, steering and other differential acceptance practices; the desirability of competitor premium card products and competition for partnerships and premium experiences, services and benefits; competition for new and existing cobrand relationships; the effects of the emergence of agentic commerce on the payments landscape and customer payment experiences; competition from new and non-traditional competitors, such as financial technology companies, and with respect to new products, services and technologies, such as the emergence or increase in popularity of digital payment platforms and currencies and other alternative payment mechanisms; competitor acquisitions and transactions; and the success of marketing, promotion, rewards programs, offers and travel-, lifestyle- and business-related benefits (e.g., lounges, dining, entertainment and business tools);
•the Company’s ability to sustain its momentum and leadership in the premium consumer space, including with Millennial and Gen-Z consumers, which will be impacted in part by competition, levels of consumer demand for premium card products, brand perceptions (including perceptions related to merchant coverage) and reputation, and the Company’s ability to successfully refresh its products and develop and market new benefits, services, experiences and other value propositions, as well as new AI and digital capabilities, that appeal to Card Members and new customers, grow spending with new and younger age cohort Card Members, offer attractive services and rewards programs and build greater customer loyalty, which will depend in part on identifying and funding investment opportunities, addressing changing customer behaviors, new product innovation and development, Card Member acquisition efforts and enrollment processes, including through digital channels, continuing to realize benefits from strategic partnerships, successfully implementing the Company’s dining strategy and evolving the Company’s infrastructure to support new products, services and benefits;
•the Company’s ability to build on its leadership in commercial payments and successfully roll out new commercial products and solutions in 2026, which will depend in part on competition, including from financial technology companies and as a result of competitor acquisitions and transactions; the willingness and ability of companies to use credit and charge cards for procurement and other business expenditures as well as use the Company’s other products and services for financing needs; the acceptance of, and economics related to, B2B payment platforms; the Company’s ability to successfully
refresh its products and offer attractive value propositions and new products to current and potential customers; the Company’s ability to enhance and expand its payment, lending, cash flow and expense management solutions, including the pilot and subsequent launch of a new expense management platform in 2026, increase customer engagement, enhance the corporate card onboarding experience and build out a multi-product digital ecosystem to integrate its broad product set, which is dependent on the Company’s continued investment in capabilities, features, functionalities, platforms and technologies and the successful introduction of capabilities related to the Company’s Center acquisition; and the success of the Company’s initiatives to support businesses, such as Small Business Saturday and other Shop Small campaigns;
•the Company’s ability to expand merchant coverage globally and its success, as well as the success of third-party merchant acquirers, processors and payment facilitators, in signing merchants to accept American Express, which will depend on, among other factors, the value propositions offered to merchants and merchant acquirers for card acceptance, the awareness and willingness of Card Members to use American Express cards at merchants, scaling marketing and expanding programs to increase card usage, identifying and growing acceptance in low- and new-to-plastic industries and businesses as they form, working with commercial buyers and suppliers to establish B2B acceptance, executing on the Company’s plans to increase coverage in priority international cities, destinations, countries and industry verticals, merchant point-of-sale practices, and continued network investments, including in capabilities that allow for greater digital integration and modernization of its authorization platform;
•the Company’s ability to grow internationally, which could be impacted by regulation and business practices, such as those capping interchange or other fees, mandating network access or data localization, imposing greater requirements on payment networks, favoring local competitors or prohibiting or limiting foreign ownership of certain businesses; perceptions of the Company’s brand in international jurisdictions; the Company’s inability to successfully replicate aspects of its business model internationally and tailor products and services to make them attractive to local customers; competitors with more scale, local experience and established relationships with relevant customers, regulators and industry participants; the success of the Company and its network partners in acquiring Card Members and/or merchants; and geopolitical and economic instability, hostilities and tensions (such as the effects of the Middle East conflict), and impacts to cross-border trade and travel;
•the Company’s ability to satisfy the closing conditions related to its proposed acquisition of TheFork, including completion of a labor consultation process and receipt of regulatory approvals, and consummate the transaction; the underlying assumptions related to the transaction proving to be inaccurate or unrealized; and the Company’s ability to integrate TheFork and benefit from and expand its platform, tools and capabilities, which will depend in part on management’s decisions regarding future operations, strategies and business initiatives;
•a failure in or breach of the Company’s operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks or outages, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt the Company’s or its partners’ operations, reduce the use and acceptance of American Express cards or the Company’s digital platforms and lead to regulatory scrutiny, litigation, remediation and response costs and reputational harm;
•legal and regulatory developments, which could affect the profitability of the Company’s business activities; limit the Company’s ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or governance, or alter the Company’s relationships with Card Members, partners, merchants and other third parties, including affecting its network operations and pricing and practices governing merchant acceptance; impact interest income, card fees and rewards programs; exert further pressure on merchant discount rates and the Company’s GNS business, as well as result in an increase in surcharging, steering or other differential acceptance
practices; alter the competitive landscape; subject the Company to heightened regulatory scrutiny and result in increased costs related to regulatory oversight and compliance, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or monetary penalties; materially affect capital or liquidity requirements or limit the ability to return capital to shareholders or pay dividends; or result in harm to the American Express brand; and
•factors beyond the Company’s control such as business, economic and geopolitical conditions, consumer and business confidence and spending generally, unemployment rates & wide-scale layoffs, market volatility, energy costs, impacts to travel, and other political developments, a continuation or further escalation or widening of the Middle East conflict or other military conflicts, regional hostilities and international tensions , adverse developments affecting third parties, including other financial institutions, merchants, partners or vendors, as well as severe weather conditions and natural disasters (e.g., hurricanes and wildfires), power loss, disruptions in telecommunications, pandemics, terrorism and other catastrophic events, any of which could significantly affect demand for and spending on American Express cards, credit metrics and reserves, customer balances, deposit levels and other aspects of the Company’s business and results of operations or disrupt its global network systems and ability to process transactions.
A further description of these uncertainties and other risks can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s other reports filed with the Securities and Exchange Commission.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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AMERICAN EXPRESS COMPANY |
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(REGISTRANT) |
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By: |
/s/ James J. Killerlane III |
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Name: James J. Killerlane III |
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Title: Corporate Secretary |
Date: July 24, 2026
EX-99.1
2
q226exhibit991.htm
EX-99.1
Document
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EXHIBIT 99.1 |
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New York | July 24, 2026 |
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AMERICAN EXPRESS |
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Q2 2026 RESULTS |
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AMERICAN EXPRESS RAISES FY 2026 REVENUE GROWTH GUIDANCE TO 10%
Q2 REVENUE INCREASED 10% WITH CARD MEMBER SPENDING GROWTH OF 9%
Q2 EARNINGS PER SHARE OF $4.53 ROSE 11%
(Millions, except per share amounts, and where indicated)
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Quarters Ended
June 30,
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YoY%
Inc/(Dec)
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Six Months Ended
June 30,
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YoY%
Inc/(Dec)
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2026 |
2025 |
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2026 |
2025 |
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Billed Business (Billions)
FX-adjusted1
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$455.8 |
$416.3
$416.8
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9%
9%
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$883.8 |
$803.7
$810.4
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10%
9%
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Total Revenues Net of Interest Expense
FX-adjusted1
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$19,637 |
$17,856
$17,880
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10%
10%
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$38,544 |
$34,823
$35,090
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11%
10%
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Pretax Income |
$4,071 |
$3,550 |
15% |
$7,849 |
$6,880 |
14% |
Net Income |
$3,110 |
$2,885 |
8% |
$6,082 |
$5,469 |
11% |
Diluted Earnings Per Common Share (EPS)2
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$4.53 |
$4.08 |
11% |
$8.81 |
$7.71 |
14% |
Average Diluted Common Shares Outstanding |
679 |
699 |
(3)% |
682 |
701 |
(3)% |
American Express Company (NYSE: AXP) today reported second-quarter 2026 net income of $3.1 billion, compared with net income of $2.9 billion a year ago. Earnings per share was $4.53, up 11 percent from $4.08 a year ago.
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Stephen J. Squeri | Chairman and Chief Executive Officer
“We had another excellent quarter, with 10 percent revenue growth, EPS of $4.53, and Card Member spending growth of 9 percent, the highest rate we've seen in three years on an FX-adjusted basis. Based on our better-than-expected performance in the first half of the year, we are raising our full-year revenue growth guidance to 10 percent and plan to reinvest this outperformance in growth initiatives given the significant opportunities we see ahead. We continue to expect full-year EPS of $17.30 to $17.90.
“Six months into the year, we’re seeing stronger momentum than we expected. The investments we made in our value propositions have driven accelerated spend and revenue growth; our Platinum portfolio is now the fastest growing in our U.S. Consumer business; our best-in-class credit performance further strengthened; and we continued to attract a large number of new customers, particularly Millennials and Gen-Zs who represent greater lifetime value.
“We are competing from a position of strength and generating momentum that enables us to continue investing in our differentiated Membership Model, which reinforce our confidence in our ability to drive sustainable growth and shareholder returns over the long term.”
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AMERICAN EXPRESS Q2 2026 RESULTS
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Second-Quarter 2026 Results |
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Business Highlights |
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Second-quarter consolidated total revenues net of interest expense were $19.6 billion, up 10 percent year-over-year. The increase was primarily driven by higher Card Member spending and increased net interest income supported by growth in card balances, as well as strong card fee growth.
Consolidated provisions for credit losses were $1.1 billion, compared with $1.4 billion a year ago. The decrease reflected a reserve release during the quarter compared to a reserve build in the prior year, partially offset by higher net write-offs. The second-quarter net write-off rate was 2.0 percent, flat year-over-year.3
Consolidated expenses were $14.5 billion, up 12 percent year-over-year. The increase was primarily driven by higher variable customer engagement costs due to increased Card Member spending, the U.S. Platinum Card® refresh, and usage of Card Member benefits, as well as higher operating expenses.
The consolidated effective tax rate was 23.6 percent, up from 18.7 percent a year ago, primarily reflecting discrete tax benefits in the prior year.
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•American Express announced the proposed acquisition of TheFork, a leading European restaurant booking platform with 50,000 restaurants across 11 countries.
•The company piloted its new expense management platform to an initial group of middle-market customers.
•American Express enabled Membership Rewards® points redemption for U.S. Card Members checking out with Apple Pay.
•The company introduced new travel benefits for Delta SkyMiles Card Members.
•American Express became the Official Payments Partner of Fanatics across select Fanatics online and retail locations worldwide.
•American Express announced a new global partnership with ALL Accor, the booking and loyalty platform for Accor’s portfolio of 45 worldwide brands, including Raffles, Fairmont, and Sofitel.
•The company ranked #1 in the JD Power 2026 U.S. Credit Card Mobile App & Online Satisfaction Studies.
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# # #
This earnings release should be read in conjunction with the supplemental financial data for the second quarter 2026 (the statistical tables), which include information regarding our reportable operating segments and certain defined terms used in this release, available on the American Express Investor Relations website at http://ir.americanexpress.com and in a Form 8-K furnished today with the Securities and Exchange Commission.
An investor conference call will be held at 8:30 a.m. (ET) today to discuss second-quarter 2026 results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned American Express Investor Relations website. A replay of the conference call will be available at the same website address following the call.
AMERICAN EXPRESS Q2 2026 RESULTS
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As used in this release, FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for current period apply to the corresponding prior-year period against which such results are being compared). FX-adjusted revenues is a non-GAAP measure. The company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the company’s performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates. |
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Attributable to common shareholders. Represents net income less earnings allocated to participating share awards and dividends on preferred shares. Refer to the statistical tables for more information. |
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Net write-off rates are based on principal losses only (i.e., excluding interest and/or fees) and represent consumer and small business card balances (net write-off rates based on principal losses only are unavailable for corporate). Refer to the statistical tables for more information and net write-off rates including interest and fees. |
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Media Contacts:
Amanda Miller, Amanda.C.Miller@aexp.com, +1.408.219.0563
Deniz Yigin, Deniz.Yigin@aexp.com, +1.332.999.0836
Investors/Analysts Contacts:
Kartik Ramachandran, Kartik.Ramachandran@aexp.com, +1.212.640.5574
Amanda Blumstein, Amanda.Blumstein@aexp.com, +1.212.640.5574
ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.
Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.
For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address American Express Company’s current expectations regarding business and financial performance, including management’s guidance for 2026 and long-term growth aspiration, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, those that are set forth under the caption “Cautionary Note Regarding Forward-Looking Statements” in the company’s current report on Form 8-K filed with the Securities and Exchange Commission (SEC) on July 24, 2026 (the Form 8-K Cautionary Note), which are incorporated by reference into this release.
AMERICAN EXPRESS Q2 2026 RESULTS
Those factors include, but are not limited to, the following:
•the company’s ability to achieve its 2026 earnings per common share (EPS) guidance and grow EPS in the future consistent with its growth aspiration, which will depend in part on revenue growth, credit performance, credit reserve and expense levels and the effective tax rate remaining consistent with current expectations and the company’s ability to continue investing in growth initiatives (such as its brand, value propositions, coverage, marketing, technology, partnerships and talent), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs and the Form 8-K Cautionary Note, as well as the following: macroeconomic and geopolitical conditions, including a slowdown in U.S. or global economic growth, changes to consumer and business confidence, higher rates of unemployment and wide-scale layoffs, impacts from the Middle East conflict and other international hostilities, deteriorations in global trade and the effects of announced or future tariffs, changes in interest rates, inflation, supply chain issues, energy costs, market volatility, and fiscal and monetary policies; the effects of technology changes and the adoption of artificial intelligence (AI); the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and the company’s reputation; changes in the competitive environment and an inability to realize benefits from new and extended sponsorships; impacts related to acquisitions, divestitures, cobrand relationships and other partners; and the impact of regulation and litigation, which could affect the profitability of the company’s business activities, limit the company’s ability to pursue business opportunities, require changes to business practices or alter the company’s relationships with Card Members, partners and merchants;
•the company’s ability to achieve its 2026 revenue growth guidance and grow revenues net of interest expense in the future consistent with its growth aspiration, which could be impacted by, among other things, the factors identified above, in the subsequent paragraphs and in the Form 8-K Cautionary Note, as well as the following: spending volumes not being consistent with expectations, including spending by U.S. and international consumer Card Members across age cohorts (including Millennial and Gen-Z customers) and business Card Members and dining, airline and other travel & entertainment spending volumes, such as due to uncertain macroeconomic and geopolitical conditions; an inability to address competitive pressures, attract and retain customers, invest in and enhance the company’s Membership Model of premium products, differentiated services and partnerships, successfully refresh card products and introduce new features and capabilities, grow banking relationships with customers and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the impacts of portfolio sales; the effects of regulatory initiatives, including pricing regulation, such as pricing for card acceptance and interest rate and fee caps, and network regulation; merchant coverage growing less than expected or the reduction of merchant acceptance or perceptions of coverage; increased surcharging, steering, suppression or other differential acceptance practices with respect to the company’s products; merchant discount rates changing from the company’s expectations; and changes in foreign currency exchange rates;
•the actual amount the company spends on growth initiatives in 2026 and beyond and the effectiveness of the investments, which will be based in part on business performance, contingencies and changes in the macroeconomic and competitive environment, including the levels of demand for the company’s products; management’s ability to balance expense control and investments in the business, develop new capabilities, features and value propositions, effectively utilize artificial intelligence, enhance our digital channels and platforms, and drive customer demand; and management’s identification and assessment of attractive investment opportunities and its decisions regarding the timing of investments; and
•the company’s ability to satisfy the closing conditions related to its proposed acquisition of TheFork, including completion of a labor consultation process and receipt of regulatory approvals, and consummate the transaction; the underlying assumptions related to the transaction proving to be inaccurate or unrealized; and the company’s ability to integrate TheFork and benefit from and expand its platform, tools and capabilities, which will depend in part on management’s decisions regarding future operations, strategies and business initiatives.
A further description of these uncertainties and other risks can be found in American Express Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the company’s other reports filed with the SEC, including in the Form 8-K Cautionary Note.
EX-99.2
3
q226exhibit992.htm
EX-99.2
Q2'26 Exhibit 99.2
See Appendix II for footnote references and definitions of certain key terms
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Consolidated Statements of Income |
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(Millions, except percentages and per share amounts) |
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Service fees and other revenue |
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Total non-interest revenues |
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Interest on Card balances and Other loans |
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Interest and dividends on investment securities |
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Deposits with banks and other |
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Total revenues net of interest expense |
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Provisions for credit losses |
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Total provisions for credit losses |
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Total revenues net of interest expense after provisions
for credit losses
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Salaries and employee benefits |
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Data processing and equipment |
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Net income attributable to common shareholders (A) |
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Earnings Per Common Share |
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Net income attributable to common shareholders |
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Average common shares outstanding |
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Net income attributable to common shareholders |
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Average common shares outstanding |
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Cash dividends declared per common share |
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# - Denotes a variance of 100 percent or more. |
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See Appendix II for footnote references and definitions of certain key terms
2
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Consolidated Balance Sheets and Related Statistical Information |
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(Millions, except percentages, per share amounts and where indicated) |
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Consolidated Balance Sheets |
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Card balances, less reserves |
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Card balances held for sale |
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Liabilities and Shareholders' Equity |
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Total liabilities and shareholders' equity |
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Related Statistical Information |
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Total Card balances and Other loans |
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Average Card balances and Other loans |
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Return on average equity (D) |
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Return on average common equity (D) |
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Book value per common share (dollars) |
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# - Denotes a variance of 100 percent or more. |
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See Appendix II for footnote references and definitions of certain key terms
3
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(Millions, except percentages) |
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Repurchase of common shares |
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Net impact of employee benefit plans and others |
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Risk-Based Capital Ratios - Basel III |
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Common Equity Tier 1/Risk Weighted Assets (RWA) |
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Supplementary Leverage Ratio (SLR) |
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Average Total Assets to calculate the Tier 1 Leverage Ratio |
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Total Leverage Exposure to calculate SLR |
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See Appendix II for footnote references and definitions of certain key terms
4
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Selected Card Related Statistical Information |
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(Millions, except percentages and where indicated) |
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Network volumes (billions) |
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Proprietary cards-in-force |
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Proprietary basic cards-in-force |
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Average proprietary basic Card Member
spending (dollars)
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Average fee per card (dollars) (E) |
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Proprietary new cards acquired |
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See Appendix II for footnote references and definitions of certain key terms
5
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Network Volumes Related Growth |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Card Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant industry billed business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goods & Services spend
(71% of Q2'26 billed business)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Travel & Entertainment spend
(28% of Q2'26 billed business)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Appendix II for footnote references and definitions of certain key terms
6
|
|
|
|
|
Selected Credit Related Statistical Information |
|
(Millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay-in-full Card balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions - principal, interest and fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net write-offs - principal, interest and fees, less
recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve as a % of Card balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of past due - consumer and small business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net write-off rate (principal, interest and fees) (G) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net write-off rate (principal only) - consumer and small
business (G)(H)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30+ days past due as a % of total - consumer and small
business (H)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90+ days past billing as a % of total - corporate (H) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net write-offs (principal only) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net write-offs (interest and fees only) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve as a % of other loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve as a % of other receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# - Denotes a variance of 100 percent or more. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Appendix II for footnote references and definitions of certain key terms
7
|
|
|
|
|
|
|
Selected Income Statement Information by Segment |
|
(Millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Consumer
Services
(USCS)
|
|
|
|
International
Card
Services
(ICS)
|
|
Global
Merchant and
Network
Services
(GMNS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Total provisions for credit losses |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense after provisions
for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
|
Card Member rewards, business development and
Card Member services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits and other operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Total provisions for credit losses |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense after provisions
for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
|
Card Member rewards, business development and
Card Member services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits and other operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Total provisions for credit losses |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense after provisions
for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
|
Card Member rewards, business development and
Card Member services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits and other operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# - Denotes a variance of 100 percent or more. |
|
|
|
|
|
|
|
|
|
|
|
|
See Appendix II for footnote references and definitions of certain key terms
8
|
|
|
|
|
Selected Income Statement and Statistical Information |
(Millions, except percentages and where indicated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provisions for credit losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense after
provisions for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Card Member rewards, business development
and Card Member services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits and other
operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billed business (billions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proprietary cards-in-force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proprietary basic cards-in-force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average proprietary basic Card Member
spending (dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net write-off rate (principal, interest and fees)
(G)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net write-off rate (principal only) (G) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30+ days past due as a % of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Appendix II for footnote references and definitions of certain key terms
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Income Statement and Statistical Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions, except percentages and where indicated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provisions for credit losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues net of interest expense after provisions
for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Card Member rewards, business development and
Card Member services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits and other operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billed business (billions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proprietary cards-in-force (J) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average proprietary basic Card Member spending
(dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Net write-off rate (principal, interest and fees) (G) |
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Net write-off rate (principal only) - small business
(G)(H)
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30+ days past due as a % of total - small business (H) |
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90+ days past billing as a % of total - corporate (H) |
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See Appendix II for footnote references and definitions of certain key terms
10
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International Card Services |
|
Selected Income Statement and Statistical Information |
(Millions, except percentages and where indicated) |
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Total revenues net of interest expense |
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Total provisions for credit losses |
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Total revenues net of interest expense after provisions
for credit losses
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Card Member rewards, business development and
Card Member services
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Salaries and employee benefits and other operating
expenses
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Billed business (billions) |
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Proprietary cards-in-force |
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Proprietary basic cards-in-force |
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Average proprietary basic Card Member spending
(dollars)
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Net write-off rate (principal, interest and fees) (G) |
|
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|
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|
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|
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Net write-off rate (principal only) - consumer and
small business (G)(H)
|
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30+ days past due as a % of total - consumer and
small business (H)
|
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90+ days past billing as a % of total - corporate (H) |
|
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See Appendix II for footnote references and definitions of certain key terms
11
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Global Merchant and Network Services |
|
Selected Income Statement and Statistical Information |
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(Millions, except percentages and where indicated) |
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Total revenues net of interest expense |
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|
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Total provisions for credit losses |
|
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|
|
Total revenues net of interest expense after provisions
for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business development and Card Member services |
|
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|
|
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|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits and other operating
expenses
|
|
|
|
|
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|
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Total network volumes (billions) |
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# - Denotes a variance of 100 percent or more. |
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|
|
|
|
|
|
See Appendix II for footnote references and definitions of certain key terms
12
|
|
|
|
|
|
|
|
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE) |
(Millions, except percentages) |
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|
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|
Average shareholders' equity |
|
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|
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|
|
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|
|
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Return on average equity (D) |
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|
Preferred share dividends and equity related adjustments |
|
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|
|
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|
|
|
|
|
|
Earnings allocated to participating share awards and
other
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity |
|
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|
|
|
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|
|
|
|
|
|
|
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|
|
|
|
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|
|
|
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|
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|
Average common shareholders' equity |
|
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|
|
|
|
|
|
|
|
|
|
|
Return on average common equity (D) |
|
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|
The financial measures in the preceding tables are presented on a basis prepared in conformity with accounting principles generally accepted in the United States of
America (GAAP), unless otherwise indicated. Certain reclassifications of prior period amounts have been made to conform to the current period presentation.
Amounts presented in the preceding tables may not sum and percentages may not recalculate due to rounding.
|
Beginning in the first quarter of 2026, we have updated our presentation and disclosure of Card Member loans and Card Member receivables to present them on a
combined basis as Card balances. Prior period amounts have been reclassified to conform to the new presentation. Previously, Card Member loans represented
balances on our credit card products and revolve-eligible balances on our charge card products, which included balances that Card Members paid in full as well as
balances that Card Members paid over time with interest, and Card Member receivables represented balances on our charge card products that need to be paid in full
on or before the Card Member’s payment due date. The updated Card balances presentation includes both revolve-eligible balances and balances that need to be paid
in full, reflecting the evolution of our card products over time, primarily due to the expansion of lending features on our charge card portfolio, and is more consistent
with industry convention. This presentation change has no impact on the recognition or measurement of outstanding Card balances and associated reserves for credit
losses.
|
|
|
Represents net income, less (i) earnings allocated to participating share awards of $20 million, $19 million, $18 million, $20 million and $18 million in Q2'26,
Q1'26, Q4'25, Q3'25 and Q2'25, respectively; and (ii) dividends on preferred shares of $15 million, $14 million, $15 million, $14 million and $15 million in
Q2'26, Q1'26, Q4'25, Q3'25 and Q2'25, respectively.
|
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|
Within assets, "other" includes the following items as presented in our Consolidated Balance Sheets: Other loans, less reserves for credit losses, Premises and
equipment and Other assets (including Other receivables); and within liabilities, "other" includes the following items: Accounts payable and Other liabilities.
|
|
|
Net interest yield on average Card balances and Other loans represents net interest income, computed on an annualized basis, divided by average Card
balances, Card balances held for sale and Other loans. Reserves and net write-offs related to uncollectible interest are recorded through provision for credit
losses and are thus not included in the net interest yield calculation.
|
|
|
Return on Average Equity (ROE) is calculated by dividing annualized net income for the period by average shareholders' equity for the period. Return on
Average Common Equity (ROCE) is calculated by dividing annualized net income attributable to common shareholders for the period by average common
shareholders' equity for the period.
|
|
|
Average fee per card is computed on an annualized basis based on proprietary net card fees divided by average proprietary total cards-in-force. |
|
|
FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of conversion into U.S. dollars (e.g., assumes
the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being
compared).
|
|
|
Our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses and we therefore present a net write-off rate including
principal, interest and/or fees. We also present a net write-off rate based on principal losses only to be consistent with industry convention.
|
|
|
Net write-off rate for principal losses only and 30+ days past due metrics represent consumer and small business, and are not available for corporate due to
system constraints.
|
|
|
Other primarily includes foreign currency translation adjustments. |
|
|
Q2'26 Commercial Services Proprietary cards-in-force reflects the sale of a small business cobrand portfolio previously classified as held for sale. |
|
|
|
As used in the preceding tables and/or in our second quarter of 2026 earnings release, investor presentation slides or investor conference call: |
|
|
|
Billed business (Card Member spending) — Represents transaction volumes (including cash advances) on payment products issued by American Express. |
Card balances — Represents balances on our card products, including both revolve-eligible balances and balances that need to be paid in full on or before the Card
Member’s payment due date (pay-in-full Card balances). Card balances consist of principal (resulting from authorized transactions), associated interest and fees.
|
Cards-in-force — Represents the number of cards that are issued and outstanding by American Express (proprietary cards-in-force) and cards issued and outstanding
under network partnership agreements with banks and other institutions, except for retail cobrand cards issued by network partners that had no out-of-store spending
activity during the prior twelve months. Basic cards-in-force excludes supplemental cards issued on consumer accounts. Cards-in-force is useful in understanding the
size of our Card Member base.
|
Locations in force (LIF) — Represents proprietary and partner acquired merchant locations where the merchant is enabled to accept American Express. LIF estimates
incorporate data provided to us by certain third parties and include merchants that accept American Express through payment facilitators and merchants that accept
American Express through digital wallets.
|
Network volumes — Represents the total of billed business and processed volumes. |
Operating expenses — Represents salaries and employee benefits, professional services, data processing and equipment, and other expenses. |
Processed volumes — Represents transaction volumes (including cash advances) on cards issued under network partnership agreements with banks and other
institutions, including joint ventures, as well as alternative payment solutions facilitated by American Express.
|
Proprietary new cards acquired — Represents the number of new cards issued by American Express during the referenced period, net of replacement cards.
Proprietary new cards acquired is useful as a measure of the effectiveness of our customer acquisition strategy.
|
Reserve build (release) — Represents the portion of the provisions for credit losses for the period related to increasing or decreasing reserves for credit losses as a
result of, among other things, changes in volumes, macroeconomic outlook, portfolio composition and credit quality of portfolios. Reserve build represents the amount
by which the provision for credit losses exceeds net write-offs, while reserve release represents the amount by which net write-offs exceed the provision for credit
losses.
|
Variable customer engagement costs (VCE) — Represents the aggregate of Card Member rewards, business development, and Card Member services expenses. |
|
|
|
Refer to the “Glossary of Selected Terminology” in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange
Commission for definitions of certain other terms used.
|
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