American Express falls as investors look past Q2 profit beat
AXP•Analysts point to lack of acceleration in growth
"The knee jerk is likely disappointment, given the lack of acceleration in both billed business and revenue growth. Some had been hoping for an 11% to be in the (revenue forecast) range. The implication is the back half will be the same, again fitting the "no accel" theme," Truist analyst Brian Foran said.
"None of this is meant to be too much of a downer — the spend growth is the highest in three years, returns now exceed 35%, the business is humming. It is just explaining the initial stock reaction v. a high bar," he added.
"We are encouraged by the modest uptick in full-year revenue guidance. We remain buyers of AXP shares on any weakness following June-quarter results," William Blair analyst Cristopher Kennedy said.
As of last close, AXP stock was down about 8% year to date.
Shares fall despite profit beat and higher forecast
Credit card giant American Express' AXP.N shares fell 4% to $327.58 premarket.
AXP beat Wall Street expectations for second-quarter profit and raised its 2026 revenue growth forecast, but investors focused elsewhere.
