American Express raises 2026 revenue forecast as affluent spending supports profit
Stronger travel and dining purchases by higher-income cardholders are helping American Express outperform broader concerns about consumer caution and living costs. The company lifts its full-year 2026 revenue growth forecast to 10% after second-quarter profit beats Wall Street expectations.
Highlights
- American Express reports billed business up 9% to $455.8 billion and quarterly revenue rising 10% to $19.6 billion for Q2 2024.
- Q2 earnings reach $4.53 per share, exceeding analyst expectations of $4.40, with the firm maintaining 10% full-year revenue growth guidance.
- Consolidated provisions for credit losses fall to $1.1 billion from $1.4 billion a year earlier, reflecting improved U.S. consumer sentiment.
Quarter results and upgraded outlook
As reported by Reuters, American Express says billed business rises 9% to $455.8 billion on a foreign exchange-adjusted basis, while quarterly revenue increases 10% to $19.6 billion. The card issuer reports earnings of $4.53 per share for the three months ended June 30, up from $4.08 a year earlier and above analysts' expectation of $4.40 per share.Chief Executive Officer Stephen Squeri says in a statement that the company is seeing stronger momentum than expected six months into the year, with prior investments in its value proposition driving faster spending and revenue growth. American Express now expects full-year revenue to grow 10%, in line with Wall Street expectations compiled by LSEG, and keeps its profit growth forecast unchanged.
Affluent consumer trends and credit quality signals
American Express draws much of its business from higher-income consumers, unlike rivals that serve a broader range of borrowers. That customer base gives investors an early view of discretionary spending trends, particularly before other major card networks report results.The New York-based company sets aside $1.1 billion in consolidated provisions for credit losses in the quarter, down from $1.4 billion a year earlier. Those reserves, which reflect expected loan repayment risks, decline as U.S. consumer sentiment rebounds from record lows in June, even though households remain concerned about the high cost of living, according to the University of Michigan's Surveys of Consumers.
In our earlier article on RTX’s Q2 results and outlook upgrade, we noted that the company beat expectations on adjusted EPS and revenue and raised its full-year sales, profit and free-cash-flow guidance. The piece also highlighted falling debt, stronger operating cash flow, and a bullish technical trend—while flagging overbought conditions that could keep the stock rangebound unless it breaks above nearby resistance.
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