American Express Raises Its 2026 Profit Guide to $18.30 to $18.60 a Share as Affluent Cardholders Keep Spending

American Express reported third-quarter 2026 results on Friday, Oct. 23, with record total revenues net of interest expense of $20.062 billion, up 9% from $18.426 billion a year earlier, GAAP net income of $3.712 billion, or $5.42 a diluted share, and adjusted earnings of $4.68 a share, above the $4.50 expectation, as billed business rose 8% to $454.0 billion and the company raised its full-year profit guidance.

The full-year guide comes in two ranges because the quarter contained one large transaction. The $18.30 to $18.60 range is the company's GAAP guide. The $17.60 to $17.90 range is the adjusted guide, a non-GAAP measure that excludes the gain from the sale of the company's equity interest in Global Business Travel Group, net of a related restructuring charge. The adjusted range narrowed from the previous $17.30 to $17.90 by lifting its floor, and the GAAP range sits above it because the third quarter booked a $982 million pre-tax gain ($751 million after tax) on the stake sale, partly offset by a $336 million pre-tax restructuring charge ($253 million after tax). The same bridge explains the quarter's two profit lines: GAAP net income of $3.712 billion was 28% higher than a year earlier, while adjusted net income was $3.214 billion and adjusted earnings of $4.68 a share rose 13% from $4.14. Against the settled expectations tally, the adjusted result beat the $4.50 expectation by $0.18, a TickerGrove calculation, while revenue of $20.06 billion came in $60 million below the $20.12 billion consensus view, also TickerGrove's calculation.

Affluent spending carried the quarter, and credit costs fell

Billed business, the total spending on American Express cards, rose 8% to $454.0 billion on both a reported and a foreign-exchange-adjusted basis, and the record revenue was broad underneath: discount revenue was $10.169 billion, net card fees rose 16% to $2.969 billion and net interest income rose 10% to $4.940 billion, supported by growth in card balances. Consolidated provisions for credit losses fell to $1.0 billion from $1.3 billion a year ago, as the quarter released reserves where the year-earlier quarter had built them, partly offset by higher net write-offs, and the net write-off rate eased to 1.8% from 1.9%. Consolidated expenses rose 9% to $14.5 billion, driven by higher variable customer engagement costs tied to Card Member spending and the U.S. Platinum Card refresh and partly offset by lower operating expenses, while the effective tax rate fell to 18.1% from 24.1% on discrete tax benefits. “We had another strong quarter, delivering 9 percent revenue growth and EPS of $5.42, or $4.68 adjusted, up 13 percent year-over-year,” Chairman and Chief Executive Stephen J. Squeri said. “Our business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality.”

A 10% revenue year, and the holiday quarter ahead

The company said it is on track to deliver another year of 10% revenue growth, the target it set after the second quarter, when the earnings guide was last held at $17.30 to $17.90. The quarter also brought product and partnership news, including the next generation of its corporate expense platform, an extended Marriott cobrand partnership and an Airbnb partnership that brings listings to Amex Travel. American Express shares rose 0.6% to about $326 in premarket trading on Friday, Oct. 23, after ending Thursday up 0.5% at $325.17. What to watch next is management's color on the 8:30 a.m. ET call, whether billed business holds its 8% pace into the holiday quarter, and whether credit provisions stay near $1.0 billion if write-offs keep drifting higher.