American Express Company (NYSE: AXP) reported record third-quarter 2026 consolidated revenue net of interest expense of $20.1 billion, up 9% year-over-year, and raised its full-year profit outlook in its Form 8-K Exhibit 99.1 earnings release filed with the Securities and Exchange Commission on Friday, October 23, 2026. Diluted earnings per share reached $5.42, a 31% surge from $4.14 in the prior-year period, while adjusted diluted EPS grew 13% to $4.68 after accounting for a non-recurring corporate divestiture gain.
Management raised full-year 2026 diluted EPS guidance to a range of $18.30 to $18.60 ($17.60 to $17.90 on an adjusted basis), pointing to sustained payment volume momentum, resilient premium customer retention, and stable card portfolio credit metrics.
Key Takeaways
- Record Top-Line Delivery: Consolidated Q3 revenues net of interest expense reached $20,062 million, advancing 9% from $18,426 million in Q3 2025, driven by higher card fees and payment card transaction volumes.
- Guidance Upgrade: Full-year 2026 EPS outlook was lifted to $18.30–$18.60 (from prior targets), representing 19% to 21% GAAP earnings expansion over 2025.
- Divestiture and Restructuring Impact: Results included a $982 million pre-tax gain ($751 million after-tax) on the sale of equity in Global Business Travel Group (GBTG), partly offset by a $336 million pre-tax restructuring charge.
- Lower Credit Provisions: Consolidated provisions for credit losses dropped 23% to $1.0 billion as a credit reserve release countered modest increases in net charge-offs.
Billed Business and Revenue Expansion
Total billed business across global network operations expanded 8% year-over-year to $454.0 billion in the quarter ending September 30, 2026, compared to $421.0 billion in the third quarter of 2025. On a constant foreign-exchange basis, billed volume growth also tracked at 8%, demonstrating steady transaction demand across premium consumer and commercial customer segments.
Revenues net of interest expense increased across core product lines, supported by double-digit net card fee growth following recent card refreshes and expanded partner distribution. In corporate disclosures, the company noted that worldwide merchant acceptance surpassed 190 million locations, having more than doubled outside the United States over the past four years.
| Financial Metric | Q3 2026 | Q3 2025 | YoY Change |
|---|---|---|---|
| Billed Business (Billions) | $454.0 | $421.0 | +8% |
| Revenues Net of Interest Expense (Millions) | $20,062 | $18,426 | +9% |
| Pretax Income (Millions) | $4,531 | $3,825 | +18% |
| Consolidated Net Income (Millions) | $3,712 | $2,902 | +28% |
| Diluted Earnings Per Share (GAAP) | $5.42 | $4.14 | +31% |
| Adjusted Diluted EPS | $4.68 | $4.14 | +13% |
| Provisions for Credit Losses (Billions) | $1.0 | $1.3 | -23% |
GAAP vs. Adjusted Earnings: Divestiture and Restructuring Bridge
American Express Company (NYSE: AXP) today reported third-quarter 2026 net income of $3.7 billion, compared with net income of $2.9 billion a year ago. The divergence between reported GAAP EPS of $5.42 and adjusted EPS of $4.68 reflects two offsetting non-operational developments during the quarter.
First, the company completed the previously announced sale of its remaining equity stake in Global Business Travel Group, Inc. (GBTG), recognizing a pre-tax gain of $982 million ($751 million after-tax, or $1.11 per share). Second, management redeployed part of the divestiture proceeds into an operational efficiency program, absorbing a $336 million pre-tax restructuring charge ($253 million after-tax, or $0.37 per share).
Adjusted net income was $3.2 billion, or $4.68 per share, which excludes the $982 million pre-tax gain ($751 million after-tax) from the previously-announced sale of the company’s equity interest in Global Business Travel Group, Inc. net of restructuring costs. Even excluding these one-off items, ongoing operating earnings expanded 13% over the prior year.
Credit Quality and Credit Loss Reserves
Consolidated provisions for credit losses were $1.0 billion, compared with $1.3 billion a year ago. The reduction in credit provisioning came as a positive surprise given broader market scrutiny surrounding revolving consumer debt burdens. According to the company’s financial disclosures, the lower provision reflected a credit reserve release during the third quarter, contrasting with a reserve build of $0.1 billion in the third quarter of 2025.
Net principal write-offs rose modestly to 1.8% of average card member loans and receivables, remaining well within historical cycle norms and beneath pre-pandemic averages. Strong customer balance-sheet metrics among affluent cardholders allowed American Express to manage portfolio risk while growing total loan balances.
Regulatory Context and Execution Momentum
The solid quarterly delivery follows earlier regulatory resolution disclosures. Two weeks prior, American Express disclosed supervisory consent orders resolving legacy anti-money laundering compliance matters, detailed in ECMSource’s coverage of the American Express $350 million regulatory settlement. At the time, management maintained that the compliance program enhancements and civil monetary penalties would not compromise annual financial performance targets. The third-quarter beat and upward guidance revision reinforce that operational momentum remains steady across core customer segments.
Readers exploring how corporate earnings releases, non-GAAP reconciliations, and capital allocation frameworks shape market valuation can review our educational guide at ECMSource Start Here.
Raised 2026 Outlook and What to Watch Next
Citing cumulative performance through the first nine months of the year, American Express raised its full-year 2026 diluted EPS expectation to $18.30–$18.60 ($17.60–$17.90 adjusted), up from its earlier guidance corridor, while reaffirming full-year revenue expansion of approximately 10%. Detailed balance-sheet components and segment schedules are available in the company’s quarterly filing on Form 10-Q and its formal Form 8-K Current Report.
Heading into the fourth quarter, investors will watch whether consumer discretionary spending and holiday travel maintain their mid-single-digit pace, how corporate card activity tracks in an evolving macroeconomic tape, and whether credit provisions continue to benefit from benign delinquency levels.
Disclosure: This article is for informational purposes only and is not investment advice.
Sources
- American Express Company Form 8-K Exhibit 99.1 Press Release (October 23, 2026) — SEC EDGAR
- American Express Company Form 8-K Current Report (October 23, 2026) — SEC EDGAR
- American Express Company Form 10-Q Quarterly Report (Period Ended September 30, 2026) — SEC EDGAR
- American Express Fined $350M in AML Settlement; Guidance Intact — ECMSource Archive