Amex earnings beat Wall Street estimates

• Key insights: Amex’s earnings beat Wall Street estimates. For the quarter ending March 31, Amex reported net income of $3.0 billion,  compared with net income of $2.6 billion a year ago. Earnings per share was $4.28, up from $3.64 a year ago. Revenue was $18.9 billion, up from $16.9 billion the prior year.
• What’s at stake: Amex plans to boost spending on technology and marketing based on its strong payments growth.
• Forward look: The company affirmed its outlook for the full year 2026. 

The Iran war’s impact has landed on American Express’ radar, but the company says it’s been muted so far.
“Against the backdrop of an unstable world, we saw record billings, and are seeing great engagement from our Platinum refresh,” Amex CEO Steve Squeri said during Thursday’s earnings call.

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Some payment companies and banks have expressed concerns over the Iran war, warning it could disrupt supply chains, boost inflation and weaken the overall economy.

Amex reported a “spike” in customer refunds in March due to cancelled travel in the Middle East, but said the impact on the company’s overall  performance was “not that large.” Amex also said it was able to rebook 18,000 customers who had travel plans in the Middle East. Fuel is less than 2% of Amex’s billed travel-related business via partnerships with fuel brands, and it has not seen “discontinuity” due to higher fuel prices.

Squeri additionally said Amex’s focus on attracting younger consumers could provide some cover from war and geopolitical risks. “The younger generation is more equipped for the changing dynamics in the world today,” Squeri said. “They are more adaptable, more technology savvy.”

Amex’s earnings

For the quarter ending March 31, the company reported net income of $3.0 billion, compared with $2.6 billion a year ago. Earnings per share was $4.28, up from $3.64 a year ago. Revenue was $18.9 billion, up from $16.9 billion the prior year. 

Analysts expected Amex to post quarterly earnings of $4.01, with revenue of $18.62 billion, according to Zacks Investment Research. 

Consolidated provisions for credit losses were $1.3 billion, compared with $1.2 billion a year ago. The increase reflected higher net write-offs and a lower reserve release compared to the prior year. The first quarter net write-off rate was 2.0 percent, compared to 2.1 percent a year ago. “It’s a strong start, and incremental investments should support continued growth,” analysts at Jefferies said in a research note. 

Amex reaffirmed its full-year 2026 guidance for 9% to 10% revenue growth and EPS of $17.30 to $17.90, and said it would increase its spending on marketing and technology. Squeri also called out Amex’s marketing deals, including extending its partnerships with the NBA and NFL, its launch of business-focused products and investment in agentic commerce. “There is a huge appetite for technology, the [strong payments] performance that we have and our use of AI allows us to get to [new tech projects] quicker,” Squeri said, noting improvements in technology work efficiency due to AI.

Agentic AI

Amex has increased its focus on agentic and generative artificial intelligence, recently introducing a Graphite Business Cash card, which is part of a pipeline of several business-focused products. The card will use agentic AI to support product searches and checkout.

The company has also developed  the American Express Agentic Commerce Experiences — or ACE — developer kit, which is designed to enable users to integrate Amex’s payment technology into their agentic experiences. 

Similar to other payment companies, Amex is betting on advancements in agentic and generative AI to feed a new generation of financial services and payment options.  

The new developer kits enable the verification of AI agents to ensure they are valid and performing authorized tasks. 

Another product, Agentic Protocols, features guardrails to provide clarity and trust for consumers who use AI agents to make purchases on their behalf. Additionally, Amex will offer a $300 ChatGPT business credit for U.S. business platinum and gold cards. 

In March, Squeri said, “We are embarking on an era in which AI-powered agents can discover products and services, make decisions, and complete transactions on behalf of consumers and businesses, from booking travel and making dinner reservations to replenishing business inventories, managing expenses and completing payments autonomously.”

Other AI-related products include an Insights Agent for corporate customers that is designed to help corporate customers to create reports with insights and analysis into their spending, leveraging data across cards, expenses, accounts payable, and other information. And an expense app will manage employee spending and reporting. Amex’s AI investments also include risk management, Squeri said. “Given our closed loop model and end-to-end view of transactions…we can provide fraud protection.” 

To enhance risk management, Amex’s agentic AI services include purchase protection, in which the company will guarantee purchases made by AI agents. 

“If the card member is left holding the bag, we’ll protect the card member,” Squeri said. 

The new business and AI tools come on the heels of Amex’s acquisition of business technology company Center in 2025 and are also related to a broader expansion in B2B payments at the company. American Express has also expanded from a brand based on traditional corporate wealth to one that includes younger consumers. Millennials and Gen Z are Amex’s fastest-growing customer segments.

“Millennials and Gen Z represent an attractive long-term tailwind for Amex,” William Blair analysts said in a research note. “The data suggest that the Gen Z and millennial cohorts are more engaged and use more rewards, and give American Express a higher share of wallet and have lower servicing costs.”