American Express reported fourth‑quarter revenue of $18.98 billion, falling short of the consensus estimate of $18.93 billion to $19.11 billion. Earnings per share were $3.53, a touch below the median analyst expectation of $3.54 and $3.55, indicating a modest miss in profitability. The miss reflects higher-than‑anticipated operating expenses, including a $200 million increase in technology and marketing spend that offset the benefit of a 9% rise in billed business.
Billed business grew 9% year‑over‑year to $408.4 billion, driven by a 10% increase in U.S. consumer card activity and a 7% rise in international card usage. Card‑member spending increased 8% on an FX‑adjusted basis, supported by a 12% jump in travel‑related purchases and a 6% lift in retail spending. The stronger mix of premium cardholders helped offset a 3% decline in low‑margin commercial card volume.
The company’s operating margin contracted to 9.9% from 10.2% in the prior year, largely due to the higher cost of the new technology investments and a 2% increase in interest expense. Net card fee revenue grew double‑digit quarter‑over‑quarter, but the impact of higher operating costs and a slight decline in merchant processing fees weighed on overall profitability.
Management reiterated its 2026 outlook, maintaining revenue growth guidance of 9%–10% and EPS guidance of $17.30–$17.90. CEO Stephen Squeri emphasized that the company’s premium‑card strategy continues to drive fee growth, while CFO Christophe Le Caillec highlighted ongoing investments in digital platforms that are expected to generate long‑term margin expansion. The guidance signals confidence in sustaining growth momentum despite short‑term cost pressures.
Investors reacted negatively to the earnings miss, with market sentiment dampened by the revenue shortfall and higher consolidated expenses. Analysts noted that while the company’s core business remains resilient, the miss underscores the need for tighter cost control and a clearer path to margin recovery in the coming quarters.
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