American Express Reports $3.53 EPS, Raises Dividend 16% and Guides 9–10% Revenue Growth
American Express reported Q4 EPS of $3.53, narrowly missing estimates, with FX-adjusted revenue up 9% to $18.98 billion driven by card spending, net interest income and fee revenue, while credit loss provisions rose to $1.4 billion. The company forecast 2026 EPS of $17.30–17.90, projected 9–10% revenue growth and announced a 16% dividend increase to $0.95.
1. Q4 Results Show EPS Slightly Below Expectations
American Express reported fourth-quarter earnings per share of $3.53, narrowly missing the consensus estimate of $3.54 and up from $3.04 a year earlier. Revenue grew 9% on a constant-currency basis to $18.98 billion, modestly outpacing the $18.92 billion analysts had forecast. Growth was driven by a 12% increase in Card Member spending and a 14% rise in net interest income, supported by higher revolving loan balances.
2. Operating Costs Rise on Engagement and Product Refresh
Total operating expenses increased 10% year-over-year to $14.5 billion. The jump reflects elevated customer engagement investments—loyalty program enhancements, marketing promotions and the U.S. Platinum Card product refresh. Credit loss provisions climbed to $1.4 billion from $1.3 billion, pushing the net write-off rate up to 2.1% from 1.9% in the prior-year period.
3. 2026 Guidance and Shareholder Return Boost
For fiscal 2026, American Express forecast EPS in a range of $17.30 to $17.90, with the midpoint above the Street’s $17.40 consensus. The company expects revenue growth of 9% to 10% next year. It also announced a 16% increase in its quarterly dividend to $0.95 per share, underscoring management’s confidence in cash flow generation despite near-term cost pressures.