AXP
American Express Co (AXP) Q2 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Article Summary
BUY- American Express Co. (NYSE: AXP) reported strong revenue growth and EPS of $4.53, with full-year revenue guidance raised to 10% reflecting confidence in strategic initiatives.
- Pre-tax income increased 15% year-over-year, spending grew 9% FX-adjusted, and card fees grew at double-digit rates for 32 consecutive quarters.
- American Express Co. maintained strong credit quality, with delinquency and write-off rates below 2019 levels, and returned $2.9 billion in capital to shareholders through dividends and share repurchases.
- Despite raising EPS guidance, the company chose not to increase EPS guidance and reinvested in growth initiatives, including 3 million new cards acquired in the quarter and global MX Travel Bookings up 22%.
- VCE-to-revenue ratio increased slightly higher than expected due to increased spending, with the sale of two small business co-brand portfolios expected to impact spend growth by about 1 percentage point and net interest income by 2.5 percentage points in Q4.
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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.