- Revenue & EPS Growth 2025 revenue hit record $72B (+10%), EPS rose 15% to $15.38 excluding a gain.
- 2026 Guidance Expects 9-10% revenue growth, $17.30-$17.90 EPS, and a 16% dividend hike to 95¢/share.
- Marketing & Tech Investments Spent $6.3B on marketing (+75% vs. 2019) and $5B annually on tech to drive growth.
- Premium Product Shift Platinum/Gold card acquisition declined by 100K YoY, but revenue growth prioritized over card count.
- Commercial Services Expansion Acquired Center to strengthen small business offerings, targeting 9% US consumer billed business growth in 2026.
Revenue Growth Drivers
The company's premium products drove strong engagement, with a 30% increase in travel bookings and 20% increase in restaurant spending. American Express saw significant growth in its platinum and gold cards, with the average age of new customers on the US consumer platinum card at 33 and 29 on the US consumer gold card. The company's focus on acquiring revenue rather than just cards resulted in a 100,000 year-over-year decrease in cards acquired, but revenue targets and return on investment targets are being met.
Valuation and Dividend
With a P/E Ratio of 22.37 and ROE of 33.43%, American Express' valuation multiples indicate a premium for its strong brand and premium product offerings. The company's decision to increase its quarterly dividend by 16% to 95¢ per share continues its track record of strong capital returns to shareholders. The Dividend Yield is currently at 0.93%, which is relatively modest compared to its historical average.
Outlook and Risks
American Express' 2026 outlook poses risks, primarily macroeconomic or political, rather than competitive dynamics. The company expects US consumer billed business growth to remain strong, with a 9% growth rate, driven by premium products like platinum and gold. The company's commercial services saw a slowdown, particularly in the middle market, but small business remains strong. American Express is well-positioned in the small business arena, with a recent acquisition of Center enhancing expense management offerings.
Investment Strategy
The company is focused on its premium products, building its commercial position, and expanding internationally. American Express will continue to refresh products, enhance technology, and leverage partnerships to drive value for card members. The company's data analytics platform, launching in 2027, will utilize AI and large language models to enhance card member engagement, create targeted offers, and drive marketing efficiency.