American Express Q4 Revenue Beats Forecast by $60M While Costs Climb 10%
American Express reported Q4 EPS of $3.53, below consensus, and FX-adjusted revenue rose 9% to $18.98 billion, beating forecasts by $60 million, while operating costs climbed 10% on higher customer engagement and a Platinum Card refresh. It guided 2026 EPS of $17.30–17.90 (midpoint above estimates) and raised its dividend ~16% to $0.95.
1. Q4 Earnings and Revenue Performance
American Express reported fourth-quarter earnings per share of $3.53, slightly below the consensus estimate of $3.54, though up from $3.04 a year earlier. Revenue rose 9% on a foreign-exchange–adjusted basis to $18.98 billion, modestly exceeding analysts’ forecast of $18.92 billion. Card Member spending remained robust, driving higher discount revenues and net interest income through growth in revolving loan balances.
2. Rising Operating Costs Impact Margins
Total expenses increased 10% year-over-year to $14.5 billion, primarily reflecting higher customer engagement costs tied to increased marketing and the U.S. Platinum Card product refresh. Credit loss provisions climbed to $1.4 billion from $1.3 billion, with the net write-off rate rising to 2.1% from 1.9%. The effective tax rate declined to 20.3% from 21.3%, boosted by a favorable geographic mix of income.
3. Strong Profit Outlook and Shareholder Returns
For the full year, the company forecast earnings per share in a range of $17.30 to $17.90, with the midpoint above consensus estimates, and projected revenue growth of 9% to 10%. American Express also announced a regular quarterly dividend increase of approximately 16%, raising the payout to $0.95 per share beginning in the first quarter of 2026, underscoring management’s confidence in cash flow generation.