American Express profits jump 18% as premium spend hits three-year high

American Express Company (NYSE:AXP) announced a standout first quarter for 2026, surpassing Wall Street expectations on both the top and bottom lines.

The New York-based payments giant reported net income of $3 billion, or $4.28 per diluted share, representing an 18% increase over the $3.64 earned in the prior-year period.

Total revenue for the quarter rose 11% to $18.9 billion, fueled by robust card member engagement and a significant uptick in interest income.

The results were underpinned by a notable acceleration in consumer activity, with card member spending growing 10% (9% on an FX-adjusted basis).

CEO Stephen Squeri highlighted that this represents the highest quarterly growth in three years, a trend he attributed to the sustained demand for the company’s premium products among both long-standing members and a growing base of Millennial and Gen Z customers.

Billed business—a key metric of total network spend—reached $428 billion for the three-month period.

Meanwhile, credit quality remained a pillar of strength despite the broader macroeconomic backdrop.

Provisions for credit losses were $1.3 billion, a modest increase from $1.2 billion a year ago, reflecting the company's focus on high-credit-standard individuals.

The principal-only net write-off rate for consumer and small business cards remained best-in-class at 2%, signaling the continued financial resilience of Amex’s core customer segments.

In light of the strong start, American Express reaffirmed its full-year 2026 guidance.

The company continues to expect revenue growth between 9% and 10% and earnings per share in the range of $17.30 to $17.90.