--- title: "American Express CEO Says Consumers Keep Spending Despite Economic Uncertainty" type: "News" locale: "en" url: "https://longbridge.com/en/news/293777117.md" description: "American Express (AXP) shares fell 6.2% despite beating Q2 earnings estimates, as investors focused on rising expenses and an unchanged full-year profit outlook. Revenue grew 10% to $19.64 billion, driven by strong consumer spending. However, total expenses rose 12% due to marketing investments and higher operating costs. The company narrowed its full-year revenue guidance but reaffirmed earnings expectations, citing no evidence of a broad consumer slowdown." datetime: "2026-07-24T15:28:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293777117.md) - [en](https://longbridge.com/en/news/293777117.md) - [zh-HK](https://longbridge.com/zh-HK/news/293777117.md) generator: "portal-rs" --- # American Express CEO Says Consumers Keep Spending Despite Economic Uncertainty **American Express Co.** (NYSE:AXP) stock fell Friday despite the company reporting stronger-than-expected second-quarter 2026 earnings, as investors focused on rising expenses and an unchanged full-year profit outlook. ## Spending Growth Remains Strong American Express reported second-quarter revenue, net of interest expense, of $19.64 billion, up 10% from a year earlier but slightly below the analyst consensus estimate of $19.69 billion. Growth was driven by higher Card Member spending, increased net interest income from larger card balances and continued strength in card fees. Adjusted earnings came in at $4.53 per share, beating the analyst consensus estimate of $4.40. CEO **Steve Squeri** said the company is seeing stronger momentum than expected midway through the year, adding that investments in its value proposition helped accelerate spending and revenue growth. Card Member spending, or billed business, increased 9% year over year to $455.8 billion, while travel and entertainment spending rose 10%. U.S. Consumer Services revenue climbed 11% to $9.52 billion. Commercial Services revenue increased 7% to $4.50 billion, International Card Services revenue rose 12% to $3.62 billion, and Global Merchant and Network Services revenue advanced 8% to $2.10 billion. Net card fees jumped 15% from a year earlier to $2.86 billion. ## Higher Costs Offset Earnings Beat Investors appeared more concerned about rising costs than the earnings beat. Total expenses increased 12% year over year to $14.5 billion, driven by higher customer engagement costs tied to increased spending, the U.S. Platinum Card refresh, greater use of card benefits and higher operating expenses. Chief Financial Officer **Christophe Le Caillec** told Reuters on Friday that American Express plans to reinvest its outperformance into marketing to support future growth, a key reason the company left its earnings outlook unchanged. Provisions for credit losses were $1.1 billion, compared with $1.4 billion a year earlier, reflecting a reserve release during the quarter versus a reserve build in the prior-year period, partially offset by higher net write-offs. The net write-off rate remained unchanged at 2.0%. The company continues to target affluent consumers, Gen Z and millennials through premium travel, dining and lifestyle rewards. In June, American Express agreed to acquire Tripadvisor-owned restaurant booking platform **TheFork** for $700 million, and Le Caillec said the company remains open to additional investment opportunities. Despite concerns about the broader economy and geopolitical tensions, American Express executives said they are not seeing signs of a broad pullback in consumer spending. During the earnings call, the CFO said there was “no evidence of a general slowdown,” noting that while spending patterns shifted in some areas, customers continued to spend across categories. ## Outlook American Express narrowed its full-year revenue outlook to $79.45 billion, representing about 10% year-over-year growth, from a prior range of $78.73 billion to $79.45 billion. The updated outlook is slightly below the analyst consensus estimate of $79.49 billion. The company reaffirmed its full-year earnings guidance of $17.30 to $17.90 per share, compared with the analyst consensus estimate of $17.64. **AXP Price Action:** American Express shares were down 6.20% at $319.69 at the time of publication on Friday, according to Benzinga Pro data. *Photo via Shutterstock* **Read Also: Apple Could Seize a Quarter of the Foldable Phone Market in Year One** ### Related Stocks - [AXP.US](https://longbridge.com/en/quote/AXP.US.md) - [AXPG.US](https://longbridge.com/en/quote/AXPG.US.md) - [TRI.US](https://longbridge.com/en/quote/TRI.US.md) - [TRIP.US](https://longbridge.com/en/quote/TRIP.US.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) ## Related News & Research - [American Express Company $AXP Stake Raised by Oppenheimer & Co. 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