Oct 23 (Reuters) - American Express (AXP.N) raised its profit forecast for 2026 on Friday after reporting strong third-quarter results as its affluent customers swiped their cards to pay for travel, dining out and shopping.

By targeting consumers with high credit scores and more disposable income, the credit card giant has built a moat around its business to keep broader economic slowdowns and uncertainty at bay.

Billed business, a measure of total spending on all AmEx-issued cards, rose 8% in the third quarter to $454 billion. Revenue climbed 9% to $20.1 billion.

“Business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality,” AmEx CEO Stephen Squeri said in a statement.

It now expects a profit in the range $18.30 to $18.60 per share for the year, compared with its prior expectation of between $17.30 and $17.90.

The company has invested heavily in attracting younger consumers, particularly Gen Z and millennials, as it seeks to build long-term customer relationships and expand its global market share to sustain growth.

AmEx’s adjusted profit rose to $4.68 per share in the quarter ended September 30, compared with $4.14 per share a year earlier.

Although the company’s results are not a comprehensive gauge of consumer health given its focus on premium customers, they offer an early look at spending patterns among the affluent, giving investors insight into discretionary spending trends.

More broadly, executives at major US banks also highlighted consumer resilience across income brackets when reporting results earlier this month, pointing to continued strength in spending and stable credit metrics.

AmEx set aside $1 billion in consolidated provisions for credit losses in the quarter versus $1.3 billion in the year-ago period.

Loan-loss provisions, often referred to as rainy-day reserves, reflect how much lenders set aside to cover expected loan losses, offering insight into their outlook for borrowers’ ability to repay debt.

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