AXP
American Express Company (NYSE: AXP, XETRA: AEC1) shares fell about 6% on Friday after American Express Co.
Article Summary
BUY- American Express Company (NYSE: AXP, XETRA: AEC1) shares fell about 6% on Friday after American Express Co. reported second-quarter revenue that came in slightly below Wall Street expectations, despite beating profit estimates.
- Revenue, net of interest expense, increased 10% year over year to $19.64 billion, slightly below analyst expectations, while net income rose 8% to $3.11 billion from $2.89 billion, and diluted earnings per share reached $4.53, beating expectations by 11%.
- Card member spending increased 9%, marking the highest rate we've seen in three years on an FX-adjusted basis, and total billed business rose 9% year-over-year to $455.8 billion.
- The company raised its full-year 2026 revenue growth guidance to 10% from 9% to 10%, while maintaining its earnings-per-share outlook of $17.90, citing accelerating spend and revenue growth driven by investments in value propositions, growth in its US Consumer Platinum portfolio, strengthening credit performance, and continued customer acquisition.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 9.4% | 25% | 35.0 ptsBelow Screener (9.4%) - Weak growth |
| EPS Growth Next 5Y ? | 14.2% | 25% | 35.0 ptsBelow Screener (14.2%) - Modest outlook |
| Target Price Upside ? | 16.9% | 20% | 60.0 ptsModerate Upside (16.9%) - Target: $378.50 vs Current: $323.90 |
| Gross Margin % ? | 60.2% | 15% | 80.0 ptsVery Healthy (60.2%) - High-quality margins |
| Drawdown from 52-Wk High ? | -16.4% | 15% | 40.0 ptsMild Pullback (-16.4%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About AXP
- American Express Company, together with its subsidiaries, operates as an integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and internationally.
- It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.
- The company offers credit and charge cards and complementary products and services, including travel, dining, and lifestyle and expense management products and services; and banking and other payment and financing products and services, including deposits and non-card lending.
- It also provides merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, as well as network services.
- The company offers its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone, and direct response advertising.
- American Express Company was founded in 1850 and is headquartered in New York, New York.