American Express (AXP) is down about 3% in Thursday trading after releasing first-quarter 2026 results that beat consensus expectations but kept full-year targets unchanged. The market reaction appears driven by concerns that expense growth and elevated customer-engagement spending are limiting near-term operating leverage, even as billed business and revenue trends remain solid. (rttnews.com)

American Express posted Q1 revenue of $18.91 billion (up 11.4% year over year) and GAAP EPS of $4.28 (up from $3.64), while confirming fiscal 2026 EPS guidance of $17.30–$17.90 and revenue growth of 9%–10%. Total expenses increased 11% year over year to $13.9 billion, with higher rewards, services and operating costs cited as key drivers—an expense trajectory that traders are weighing against the pace of spending growth. (rttnews.com)

Management highlighted momentum with premium cardmembers and continued strength in card fee growth and net interest income, supported by higher card balances. However, disclosures also pointed to higher variable customer engagement expenses and recent travel disruption effects, including a late-quarter softening in airline spend tied to Middle East-related disruptions—items that can raise uncertainty around near-term profitability and volume trends. (investing.com)

Investors will likely focus on whether expense growth moderates over the next quarter, especially rewards and servicing costs tied to elevated engagement, and whether billed business remains resilient as travel patterns normalize. Share repurchases and capital return also remain in view after the company reported buying back 5.3 million shares for $1.66 billion in Q1 at an average price near $311. (stocktitan.net)