A payments company that issues credit and charge cards to consumers and businesses around the world, known for premium cards and cobrand partnerships. It also processes merchant payments through a global network spanning dozens of countries. Founded in 1850 in Buffalo as an express-delivery firm hauling valuables, it shares founders with Wells Fargo. Company president J.C. Fargo was so frustrated getting cash abroad that he had the Travelers Cheque invented in 1891.
Q2 2026 net income rose 8% to $3.1B as revenue grew 10% to $19.6B
Card Member services expense rose 50% on new U.S. Platinum benefits, the largest cost move this quarter. rose 10% to $19.6B and rose to $4.28 (up 17.6% ) as provisions for credit losses fell 23% to $1.1B on a . American Express is investing in the Membership Model while holding capital within its target range.
Key takeaways
Card Member services expense rose 50% to reflect new U.S. Platinum benefits, driving total expenses up 12% to $14.5B even as grew 10% to $19.6B.
Provisions for credit losses fell 23% to $1.1B due to a versus a prior-year build and lower delinquencies; the held at 2.0%.
growth was led by discount revenue up 9% on 9% billed business growth, net card fees up 15% from premium card portfolio growth, and up 11% on higher revolving balances and yield expansion.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose 8% to $3.1B on 10% revenue growth, driven by strong billed business and disciplined expense management.
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Total revenues net of increased 10% to $19.6B, with Discount up 9% on 9% billed business growth, Net card fees up 15% from premium card growth, and up 11% on higher revolving balances and yield expansion.
rose 8% to $3.1B and was $4.28, up 17.6% from $4.08 a year earlier and 21.0% from $3.54 in Q1 2026.
grew 23% on 11% growth and a 40% drop in provisions; revenue rose 12% with 13% billed business growth.
The company returned $2.9B to shareholders, held a of 10.4% within its 10-11% target, and expects a pre-tax gain from selling its Global Business Travel Group stake.
What changed
Q2 2026 provisions for credit losses fell to $1.1B from $1.25B in Q1 2026 and $1.4B a year earlier, with the stable at 2.0% versus the 2.3% FY2025 base flagged to watch.
Card Member services expense rose 50% in Q2 after a 49% increase in Q1 2026 from U.S. Platinum benefits, confirming the cost trend flagged after Q1.
Share repurchases totaled $2.9B returned in Q2 versus $2.3B in Q1 2026, against a of 10.4% within the 10-11% target under Category III rules noted in the FY2025 10-K.
Net card fees rose 15% in Q2, continuing the premium card growth flagged to watch after the 18% FY2025 increase.
The +200bps rate shock disclosed would cut annual by $401M as of June 30, 2026, down from the $464M-$477M range cited in 2024-2025 filings.
What to watch
Q3 2026 provisions for credit losses and after the $1.1B Q2 expense with a and stable 2.0% rate
Card Member services expense trend after the 50% Q2 increase from U.S. Platinum benefits
Pace of share repurchases in Q3 against the 10.4% under Category III rules
Pre-tax gain size from the sale of the Global Business Travel Group stake and its effect on Q3 results
Provisions for credit losses fell 23% to $1.1B due to a versus a prior-year build, reflecting lower delinquencies; the (principal only) was stable at 2.0%.
Total expenses rose 12% to $14.5B, driven by a 50% jump in Card Member services from new U.S. Platinum benefits, 9% higher Card Member rewards on increased spending, and 9% higher salaries; marketing grew 6%.
pretax income grew 23% on 11% growth and a 40% drop in provisions; revenue rose 12% (12% ) with 13% billed business growth.
The company maintained a of 10.4% within its 10-11% target, returned $2.9B to shareholders via buybacks and dividends, and expects a sizable pre-tax gain from selling its stake in Global Business Travel Group.
Management expects a moderation in spend growth as it exits small business cobrand held-for-sale portfolios and continues to invest in the Membership Model, including the proposed acquisition of TheFork.
For information that updates the disclosures set forth under Part I, Item 3. “Legal Proceedings” in the 2025 Form 10-K, refer to Note 7 to the “Consolidated Financial Statements” in this Form 10-Q.
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For information that updates the disclosures set forth under Part I, Item 3. “Legal Proceedings” in the 2025 Form 10-K, refer to Note 7 to the “Consolidated Financial Statements” in this Form 10-Q.
For a discussion of our risk factors, including risks and uncertainties related to business, economic and geopolitical conditions, see Part I, Item 1A. “Risk Factors” of the 2025 Form 10-K. The risks and uncertainties that we face are not limited to those set forth in the 2025 F…
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For a discussion of our risk factors, including risks and uncertainties related to business, economic and geopolitical conditions, see Part I, Item 1A. “Risk Factors” of the 2025 Form 10-K. The risks and uncertainties that we face are not limited to those set forth in the 2025 Form 10-K. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business and the trading price of our securities.
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