American Express Profit Rises on Premium Customer Strength
By Nicholas G. Miller
American Express reported higher first-quarter profit on the back of continued strength in its business targeting upper-income customers.
The company posted net income of $2.97 billion, or $4.28 a share, up from $2.58 billion, or $3.64 a share, the year prior. Analysts polled by FactSet had expected $4 a share.
Consolidated total revenue net of interest expense rose 11% to $18.91 billion. Wall Street had expected $18.61 billion.
Consolidated expenses rose 11% to $13.9 billion. The company said the increase was driven by higher customer engagement costs due to increased card member spending, the refresh of its U.S. Platinum Card and the usage of travel and lifestyle benefits.
The company reiterated its full-year guidance of 9% to 10% revenue growth and earnings of $17.30 to $17.90 a share. Analysts see full-year earnings of $17.56 a share. American Express also said it had decided to increase its investments in marketing and technology.
Last year, the company unveiled its updated consumer and business Platinum cards with a higher annual fee. The company said in January that it was seeing strong demand for its Platinum card and that premium products were providing much of its card-fee growth.
The company also said then that higher-income clients were showing strength and stability, continuing to spend on restaurants and luxury items.
Write to Nicholas G. Miller at nicholas.miller@wsj.com
(END) Dow Jones Newswires
April 23, 2026 07:24 ET (11:24 GMT)
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