American Express Co
AXP10-Q,quarter ended Sep 30, 2026,filed Oct 23, 2026,Original on SEC.gov (opens in a new tab)
3 of 3 checkable figures match the filing, 4 of 4 risk excerpts located in the filing text
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The Print
American Express reported third-quarter 2026 net income of $3.7B ($5.42 diluted EPS) on total revenues net of interest expense of $20.1B, up 9% from $18.4B a year earlier.
Revenue growth was driven by billed business, which management said drove an 8% increase in Discount revenue, while Net card fees grew 16% reflecting product refreshes and Net interest income grew 10% on balance growth and net yield expansion. Net income growth outpaced revenue growth, with the quarter including a $982M pre-tax gain on the GBTG sale and a $336M restructuring charge, and the effective tax rate falling to 18.1% from 24.1% on discrete tax benefits related to resolution of prior-period tax items.
- Total revenues net of interest expense rose 9% YoY to $20.1B, with net card fees up 16% and net interest income up 10%.
- Net income increased 28% to $3.7B and diluted EPS rose 31% to $5.42, aided by a $982M pre-tax gain ($751M after tax) on the sale of the GBTG equity interest, partly offset by a $336M restructuring charge.
- Provisions for credit losses fell 23% to $985M, driven by a reserve release versus a prior-period reserve build, with the Card balances reserve down to $5.6B (2.5% of Card balances) from $6.1B (2.9%).
- Billed business grew 8% to $454.0B and Card balances and Other loans rose 8% to $233.2B.
Results That Matter
- Net Interest Income
- Current period
- $4.9B
- Prior period
- $4.5B
- Change
- unavailable
Prior period from XBRL - Non-Interest Income
- Current period
- $15.1B
- Prior period
- $13.9B
- Change
- unavailable
Prior period from XBRL - Total revenues net of interest expense
- Current period
- $20.1B
- Prior period
- $18.4B
- Change
- +8.9%
Growth was driven by billed business, which management said drove an 8% increase in Discount revenue, alongside a 16% increase in Net card fees and a 10% increase in Net interest income. - Total non-interest revenues
- Current period
- $15.1B
- Prior period
- $13.9B
- Change
- +8.5%
Discount revenue rose 8% and Net card fees rose 16%, the latter reflecting increases in average fee per card of premium products and growth in premium card portfolios. - Total provisions for credit losses
- Current period
- $985.0M
- Prior period
- $1.3B
- Change
- −23.5%
Management attributed the decrease primarily to reserve releases in the current period versus reserve builds in the prior period, partially offset by higher net write-offs. - Total expenses
- Current period
- $14.5B
- Prior period
- $13.3B
- Change
- +9.3%
Card Member services expense rose 36% and Salaries and employee benefits rose 15%, while Other, net expense fell 26%, which management attributed primarily to the GBTG sale gain and gains on Amex Ventures investments, partially offset by increases in legal reserves and technology costs. - Pretax income
- Current period
- $4.5B
- Prior period
- $3.8B
- Change
- +18.5%
Pretax income rose 18% while the income tax provision fell 11% to $819M, with the effective tax rate at 18.1% versus 24.1%. - Net income
- Current period
- $3.7B
- Prior period
- $2.9B
- Change
- +27.9%
Net income growth exceeded pretax income growth, reflecting the lower effective tax rate in the current period. - Diluted earnings per common share
- Current period
- $5.42
- Prior period
- $4.14
- Change
- +30.9%
Diluted EPS grew faster than net income as average diluted shares fell 3% to 674 million from 693 million.
| Metric | Current Period | Prior Period | Change | Investor Takeaway |
|---|---|---|---|---|
| $4.9B | $4.5B | unavailable | Prior period from XBRL | |
| $15.1B | $13.9B | unavailable | Prior period from XBRL | |
| $20.1B | $18.4B | +8.9% | Growth was driven by billed business, which management said drove an 8% increase in Discount revenue, alongside a 16% increase in Net card fees and a 10% increase in Net interest income. | |
| $15.1B | $13.9B | +8.5% | Discount revenue rose 8% and Net card fees rose 16%, the latter reflecting increases in average fee per card of premium products and growth in premium card portfolios. | |
| $985.0M | $1.3B | −23.5% | Management attributed the decrease primarily to reserve releases in the current period versus reserve builds in the prior period, partially offset by higher net write-offs. | |
| $14.5B | $13.3B | +9.3% | Card Member services expense rose 36% and Salaries and employee benefits rose 15%, while Other, net expense fell 26%, which management attributed primarily to the GBTG sale gain and gains on Amex Ventures investments, partially offset by increases in legal reserves and technology costs. | |
| $4.5B | $3.8B | +18.5% | Pretax income rose 18% while the income tax provision fell 11% to $819M, with the effective tax rate at 18.1% versus 24.1%. | |
| $3.7B | $2.9B | +27.9% | Net income growth exceeded pretax income growth, reflecting the lower effective tax rate in the current period. | |
| $5.42 | $4.14 | +30.9% | Diluted EPS grew faster than net income as average diluted shares fell 3% to 674 million from 693 million. |
Earnings Quality & Cash Conversion
Reported third-quarter net income of $3,712M includes a $982M pre-tax ($751M after tax; $1.11 per share) gain on the sale of the GBTG equity interest, reported as a reduction to Other expense within Corporate & Other, and a $336M ($253M after tax; $0.37 per share) restructuring charge that management said resulted from using a portion of the gain to invest in efficiency initiatives. The filing does not define an adjusted or ex-item earnings total.
Red flag
Red flag
Value Drivers & Capital Allocation
“We plan to continue to return to shareholders the excess capital we generate while managing our CET1 capital ratio within our target range and supporting balance sheet growth.”
Filing statement
Period net income attributable to the parent / period-end equity, not annualized: 10.4% (prior at 2025-09-30: 9.0%); period net income attributable to the parent / period-end assets, not annualized: 1.2% (prior at 2025-09-30: 1.0%).
Forward Signals
No quantitative financial guidance is provided in the filing. Management stated only that it expects growth in variable customer engagement expenses to moderate next quarter as the impact of the U.S. Platinum refresh is reflected in both current and prior period results.
Known trends
- Management expects growth in variable customer engagement expenses (Card Member rewards, Card Member services and Business development) to moderate next quarter as the U.S. Platinum refresh impact is reflected in both current and prior period results.
- Management cited uncertainty in the geopolitical and regulatory landscape and stated it will continue to strengthen risk management and compliance programs.
Subsequent events
- Not disclosed—no material events after September 30, 2026 are described in the provided excerpts.
“We expect growth in variable customer engagement expenses to moderate next quarter as the impact of the refresh of our U.S. Platinum cards will be reflected in both current and prior period results.”
Management
Risks
Excerpts are the filing’s own words; each heading is the start of its excerpt. Selected excerpts are not a complete risk inventory.
Other expenses decreased for both the three and nine month periods, primarily driven by the gain…
Other expenses decreased for both the three and nine month periods, primarily driven by the gain recognized on the sale of our equity method investment in GBTG and gains on Amex Ventures investments, partially offset by increases in legal reserves and technology costs.
Card balances reserve for credit losses decreased for the three months ended September 30, 2026…
Card balances reserve for credit losses decreased for the three months ended September 30, 2026, primarily driven by enhancements to the models that estimate expected credit losses resulting from our periodic review process, partially offset by a sequential increase in Card balances.
In connection with the project, we entered into a commitment of up to $2.8 billion for the cost…
In connection with the project, we entered into a commitment of up to $2.8 billion for the cost of construction.
For a discussion of our risk factors, including risks and uncertainties related to business…
For a discussion of our risk factors, including risks and uncertainties related to business, economic and geopolitical conditions, see Part I, Item 1A. “Risk Factors” of the 2025 Form 10-K.
4 of 4 excerpts located in the filing text
Segments
| Segment | Revenue | Operating Income | Revenue Change | Commentary |
|---|---|---|---|---|
| USCS | $4.3B | +10.5% | Management attributed non-interest revenue growth primarily to higher Discount revenue and Net card fees, with Net card fees up 18% on higher average fee per card and premium portfolio growth; billed business rose 9% to $194.2B. | |
| CS | $3.1B | +4.0% | Management attributed the segment's expense increase to higher Card Member rewards, Card Member services, Business development and Marketing expenses, and noted billed business growth of 3% reflected exits from small business cobrand held-for-sale portfolios. | |
| ICS | $2.1B | +7.5% | Management attributed revenue growth to higher Discount revenue and Net card fees, with billed business up 11% on both a reported and FX-adjusted basis; Swisscard became a wholly owned subsidiary on January 12, 2026. | |
| GMNS | $1.7B | +9.0% |
Balance Sheet & Liquidity
Leverage: Identified borrowing components as of 2026-09-30 (carrying amount): long-term debt including current maturities of $58.5B; short-term borrowings of $1.4B. Together $60.0B — every borrowing this filing reports separately on this basis, though it covers borrowings only, not lease, deposit or other financial liabilities, so it is not a total obligations measure.
Liquidity: Cash and cash equivalents totaled $43,203M at September 30, 2026, down $4,589M from $47,792M at December 31, 2025, per the Consolidated Statements of Cash Flows. Customer deposits rose to $155,019M from $152,488M at year-end 2025.
Working capital: Not applicable—American Express reports an unclassified balance sheet with no current-asset/current-liability split.
Maturities & covenants
- Contractual maturities of available-for-sale debt securities: $1,967M due in 1 year or less, $3,069M due after 1 year through 5 years, $7M due after 5 years through 10 years and $32M due after 10 years (estimated fair value).
- Common Equity Tier 1 capital ratio was 10.9% at September 30, 2026 versus 10.5% a year earlier, within management's stated 10 to 11 percent target range.
Notable Footnotes
| Item | Impact |
|---|---|
| Sale of GBTG equity interest | The sale of the approximately 30 percent equity interest in GBTG on September 29, 2026 resulted in a pre-tax gain of $982M ($751M after tax), reported as a reduction to Other expense within Corporate & Other. |
| Card balances presentation change | Beginning in the first quarter of 2026, Card Member loans and Card Member receivables are presented on a combined basis as Card balances, with prior periods reclassified; the change has no impact on recognition or measurement of balances or reserves. |
| Switzerland joint venture acquisition | The January 12, 2026 acquisition of the partner's interest in Swisscard AECS GmbH resulted in recognition of $272M of intangible assets and $136M of goodwill within the ICS segment, with purchase accounting preliminary. |
| New headquarters commitment | The company committed up to $2.8B for construction of a new headquarters at 200 Greenwich Street and recognized a $370M finance lease liability with a corresponding right-of-use asset. |
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