American Express Profit Rises on Strength of Premium Customers

American Express Company (NYSE: AXP) reported higher first-quarter profit, driven by continued spending strength among its premium card members and sustained growth in billed business. The company described the quarter as a strong start to 2026.

On a reported basis, revenue rose to about $18.9 billion and earnings per share came in at $4.28, exceeding Wall Street estimates. Total billed business reached roughly $428.0 billion, while Card Member spending increased 9% on a foreign-exchange-adjusted basis — the highest quarterly pace in three years. The company also noted growth in card balances and net interest income, with credit metrics remaining stable.

Market reaction was mixed: shares initially moved higher in pre-market trading but retraced some gains during the session. Investors focused on which revenue streams and customer cohorts were driving growth; American Express signaled continued investment in marketing, technology and membership benefits while reaffirming full-year guidance for 9–10% revenue growth and EPS of $17.30–$17.90.

Management highlighted that the premium customer base sustained strong spending on travel and discretionary categories, although airline-related spending softened in March and April due to travel disruptions in the Middle East. The company emphasized that its Membership Model and premium product offerings remain central to its resilience versus broader consumer cohorts.

Analysts say the results validate American Express’s strategy to monetize higher-income customers through fees, lending and exclusive benefits, but caution that margin pressure from elevated investment levels and macro volatility could affect forward results. Key metrics to watch going forward include Card Member spend trends, growth in card balances and the trajectory of credit losses. The company’s confirmed guidance provides a degree of clarity for 2026, though execution will determine whether the momentum is sustained.