American Express Raises Profit Outlook on Increased Member Spending — Update

By Kelly Cloonan

American Express boosted its profit outlook for the year as its customers continue to spend more.

The updated outlook came as the credit-card company, which targets higher-income consumers, reported a 9% rise in sales in the third quarter.

Chief Executive Stephen Squeri attributed the guidance raise to the company's performance so far this year. American Express is seeing strength in billings as it acquires new customers and retains its existing card members, he said, and as it continues to improve its membership model.

The company has been investing further in its roster of membership credit cards that come with annual fees and a range of perks. For instance its Platinum card, which was refreshed last year, comes with access to premium travel perks like airport lounges and luxury hotel benefits. The company said in July that the card, which has one of the highest annual fees of any Amex card, is now its fastest growing product in its U.S. consumer business.

American Express now forecasts earnings per share of $18.30 to $18.60 for the year, up from $17.30 to $17.90 previously. The new outlook factors in a boost from the sale of the company's equity investment in Global Business Travel Group, net of a restructuring charge.

The company expects adjusted earnings per share--which exclude the effects of the sale and restructuring--of $17.60 to $17.90, and said it remains on track for sales growth of 10% this year.

Analysts polled by FactSet project earnings of $17.61 a share on revenue growth of 10% for the year.

Third-quarter profit was $3.71 billion, or $5.42 a share, compared with $2.9 billion, or $4.14 a share, a year earlier.

Adjusted earnings per share were $4.68, compared with analyst estimates of $4.48, according to FactSet.

Revenue net of interest expense rose 9% to $20.06 billion. Analysts forecast revenue of $20.12 billion.

The increase in sales was primarily due to higher card-member spending, higher net interest income on growth in card balances, card fee growth, American Express said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

October 23, 2026 08:33 ET (12:33 GMT)