AXP
American Express Raises Revenue Outlook as Expenses Jump 12%, Shares Fall 5.7%
Article Summary
BUY- American Express Co. (NYSE: AXP) reported stronger second-quarter spending and earnings as demand from premium cardholders continued to support growth.
- Revenue increased 10%, while customer spending rose 9% on a currency-adjusted basis, marking its fastest growth rate in three years.
- Billed business climbed more than 9% to $455.8 billion, slightly above analysts' expectations, while adjusted earnings reached $4.53 per share exceeding the $441 analyst estimate.
- American Express Co. raised its full-year revenue growth forecast to 10% from its previous range of 9 to 10%, suggesting management has become more confident in American Express Co.'s momentum.
- However, expenses rose 12% from the previous quarter to $14.5 billion, reflecting higher customer-engagement costs, increased customer spending, the update of its U.S.
- Platinum card and greater use of cardholder benefits.
- Management expects marketing expenses to increase by around 10% in the second half of 2026 compared with the same period last year, while operating expenses are expected to grow at a mid-single-digit rate.
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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 ? | 16.0% | 20% | 60.0 ptsModerate Upside (16.0%) - Target: $378.50 vs Current: $326.17 |
| Gross Margin % ? | 60.2% | 15% | 80.0 ptsVery Healthy (60.2%) - High-quality margins |
| Drawdown from 52-Wk High ? | -15.8% | 15% | 40.0 ptsMild Pullback (-15.8%) - 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.