American Express delivered stronger earnings, but investors should separate growth in its card business from a disposal gain and other accounting effects. For households, the report also highlights why a card’s benefits and fees deserve a separate calculation from the company’s success.
Review window: October 23, 2026, 04:00–16:00 UTC. The company announced results at 7:00 a.m. EDT (11:00 UTC) on October 23; the financial results cover the quarter ended September 30. This is a new quarterly announcement, not a new date for earlier business activity.
What happened: reported profit outpaced adjusted growth
American Express (NYSE: AXP) reported net income of $3.712 billion, up 28% from a year earlier. Diluted earnings per share, or EPS, rose 31% to $5.42. Adjusted EPS increased 13% to $4.68. Revenue net of interest expense rose 9% to $20.062 billion, according to the company-issued release distributed by Publicnow.
Read the earnings bridge
The company’s reconciliation shows $5.42 minus a $1.11 after-tax sale gain per share, plus a $0.37 after-tax restructuring charge, equals $4.68. The gain came from selling its equity investment in Global Business Travel Group. GAAP follows standard accounting rules; adjusted EPS removes specified items. Neither measure should be read alone.
Why it happened: spending, fees and accounting effects
American Express attributed revenue growth to higher customer spending, net interest income and card fees. Its effective tax rate fell to 18.1% from 24.1%, reflecting discrete tax benefits. Credit-loss provisions also declined, partly because reserves were released rather than increased.
Interpretation: A lower tax bill and a reserve release can lift profit without equivalent growth in customer purchases. A provision is an expense for expected credit losses; it is different from a loan actually being written off. These distinctions help explain why a strong headline does not measure every part of the business equally.
What it means for personal money and investing
For cardholders: calculate usable value
A premium card can be worthwhile when benefits you would otherwise buy exceed the annual fee. Count credits you can realistically use, not their advertised maximum. Higher spending by other customers is no reason to increase your own budget. Carrying an interest-bearing balance can outweigh rewards, so repayment costs belong in the calculation.
For shareholders: test repeatability
Adjusted earnings can help compare ongoing performance, but restructuring still consumes resources. Reported earnings retain those costs and the disposal gain. Compare both, then examine spending growth, customer retention and credit quality over several quarters. American Express customers are not a representative sample of every U.S. household.
What to watch next
Management raised full-year GAAP EPS guidance to $18.30–$18.60, with adjusted guidance of $17.60–$17.90. These are company forecasts, not guaranteed outcomes. Watch whether revenue growth continues after fee changes, whether credit-loss reserves need rebuilding, and whether efficiency spending produces lasting savings.
Investor interpretation: Better earnings need not produce a higher stock price if valuation already assumes strong growth. Compare future results with the assumptions behind the outlook, including taxes and credit costs. The original investor-relations earnings and SEC-filings page provides the company’s reporting materials; its October 23 announcement identifies the release and earnings call.
Core keywords: American Express Q3 2026 earnings, AXP stock, adjusted EPS, credit losses, card fees, earnings guidance.
