Overview

• Payments and card services provider's Q1 revenue rose 11% and EPS increased 18% yr/yr

• Company attributed growth to higher card member spending and increased net interest income

• Company reaffirmed FY 2026 revenue and EPS guidance

Outlook

• American Express reaffirms FY 2026 revenue growth guidance of 9-10%

• Company maintains FY 2026 EPS guidance of $17.30-$17.90

• Company plans increased investments in marketing and technology for long-term growth

Result Drivers

• CARD MEMBER SPENDING - Co said higher Card Member spending was the primary driver of revenue growth in Q1

• NET INTEREST INCOME - Growth in card balances contributed to higher net interest income, supporting overall revenue growth

• CARD FEE GROWTH - Strong growth in card fees also contributed to higher revenues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 13 "strong buy" or "buy", 17 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy."

• Wall Street's median 12-month price target for American Express Co is $360.00, about 8.1% above its April 22 closing price of $332.90

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago

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