American Express (AXP) Stock Falls Despite Revenue Beat After Q4 Earnings Report

TLDR

• American Express reported fourth-quarter earnings of $3.53 per share, missing analyst estimates of $3.54 per share
• Revenue rose 10% to $18.98 billion, beating Wall Street’s expectations of $18.92 billion
• The company forecasts 2026 revenue growth of 9% to 10% with earnings between $17.30 and $17.90 per share
• Card member spending increased 9% while net card fee revenues grew by double digits
• American Express announced a 16% dividend increase to 95 cents per share starting in the first quarter

American Express shares dropped 2.8% in premarket trading Friday after the company reported mixed fourth-quarter results. The credit-card giant posted earnings that fell short of expectations while revenue topped Wall Street forecasts.

American Express Company, AXP

The company reported earnings of $3.53 per share for the fourth quarter. That figure came in just below the analyst consensus estimate of $3.54 per share, according to FactSet.

Revenue painted a brighter picture. Net income totaled $2.46 billion, up from $2.17 billion in the prior year period.

Revenue net of interest expenses reached $18.98 billion, marking a 10% increase from last year. The result exceeded Wall Street’s projection of $18.92 billion.

The revenue growth came from multiple sources. Higher card member spending drove the increase, along with card fee growth and increased net interest income from growing revolving loan balances.

Card member spending climbed 9% during the quarter. Net card fee revenues grew by double digits, showing strong demand for the company’s premium offerings.

Expenses Rise With Customer Engagement

Company expenses increased 10% to $14.5 billion. The jump stemmed largely from higher variable customer engagement costs tied to increased spending and the launch of new Platinum cards.

American Express laid out its expectations for the year ahead. The company forecasts 2026 revenue growth of 9% to 10%, maintaining the same pace as 2025.

2026 Outlook and Dividend Boost

The earnings guidance for 2026 ranges from $17.30 to $17.90 per share. The midpoint of that range sits slightly above the analyst estimate of $17.43 per share.

The company announced a dividend increase of 16% to 95 cents per share. The new dividend rate takes effect in the first quarter.

Shares had already fallen 3.1% in 2026 through Thursday’s close. The decline comes partly from uncertainty around President Donald Trump’s proposal to cap credit-card interest rates at 10% for one year.

Other financial stocks showed weakness in early trading. Capital One Financial dropped 0.7% while JPMorgan Chase fell 0.4%.

Card network stocks also declined. Visa slipped 1% and Mastercard dropped 0.6% in premarket trading.

The broader S&P 500 fell sharply in early premarket trading. The index recovered some ground after Trump nominated Kevin Warsh, former Federal Reserve governor, to be the next Fed chair.

American Express has maintained that its customer base continues spending and paying bills despite broader consumer confidence declines. The company targets higher-income consumers willing to pay premium fees for cards offering perks and benefits.

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