American Express Company (AXP.US) Q3 2026 Earnings Call

CEO Steve Squeri reports a strong Q3 with record revenue of $20 billion, up 9% YoY, and EPS of $5.42 (GAAP) and $4.68 (adjusted). The company reaffirmed its 10% revenue growth guidance and raised EPS guidance to $18.30-$18.60 (GAAP) and $17.60-$17.90 (adjusted). Key items this quarter include gains from a global business travel transaction and restructuring expenses of $336 million, with no material impact on the 2026 forecast.

Steve Squeri discusses legal expenses related to recent OCC civil penalties and states these issues will not impact 2026 financial guidance. He emphasizes the company's responsibility to address past deficiencies and rebuild trust with stakeholders. Additionally, he mentions reinvesting global business travel transaction gains into the company's long-term growth.

Steve Squeri explains the company's plan to enhance efficiency and innovation capabilities through a restructuring process, which will involve a $336 million expense and a 5% reduction of positions globally. He emphasized the role of these changes in increasing agility and long-term operational success.

Steve Squeri shares American Express's advances in AI, emphasizing its role in customer personalization, improving productivity, and creating differentiated value through partnerships with platforms such as OpenAI and Resy. The company aims to enhance member experiences by tailoring benefits such as restaurant recommendations and travel planning through AI-driven tools.

CFO Christophe Le Content highlights Q3 revenue of $20.1 billion, a 9% YoY growth, and net interest income up 10%. Adjusted EPS is $4.68, reflecting gains from the Global Business Travel Group investment and legal reserve adjustments. He notes strong consumer spending in T&E categories and sustained American consumer strength in premium segments.

Christophe reports a re-affirmed 10% full-year revenue growth target and revised EPS guidance of $18.30-$18.60 (GAAP) and $17.60-$17.90 (adjusted). He details cash returns to shareholders totaling $2.2 billion in Q3, including $1.6 billion in share buybacks.

Steve Squeri explains how American Express leverages its premium membership model rather than purely competing on points or rewards optimization. He emphasizes trust, access, and security as key differentiators and notes features like spending thresholds to prevent system manipulation.

Christophe Le Content discusses competitive dynamics in the U.S. market, noting 11% international billings growth and steady marketing investments. He highlights sustained U.S. consumer spending growth driven by high-end segments, particularly in T&E and dining.