American Express delivered revenue broadly in line with Wall Street expectations and a GAAP profit that exceeded consensus in the third quarter. Management attributed the quarter’s performance to continued strength in its premium cardmember base, robust travel and entertainment spending, and higher net card fees. CEO Steve Squeri acknowledged the impact of a restructuring charge and legal expenses, including a civil penalty from regulators, stating, “the deficiencies cited in the consent order should not have occurred, and we are accountable for addressing them thoroughly.”
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American Express (AXP) Q3 2026 highlights:
- Revenue: $19.08 billion vs analyst estimates of $20.12 billion (11.3% year-on-year growth, 5.2% miss)
- Adjusted EPS: $4.68 vs analyst estimates of $4.49 (4.3% beat)
- Operating Margin: 23.8%, up from 22.3% in the same quarter last year
- Market Capitalization: $210 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from American Express’s Q3 earnings call
- Sanjay Sakhrani (KBW) asked about the risk of customers using AI to maximize rewards and how American Express might adjust its model. CEO Steve Squeri responded that American Express has tools to manage gaming behavior, including spend thresholds, and will use AI to monitor and adapt rewards as needed.
- Ryan Nash (Goldman Sachs) inquired about the sustainability of current spend trends and the outlook for expenses related to value proposition enhancements. CFO Christophe Le Caillec noted that core spending remains strong and expects value proposition growth to moderate after lapping the Platinum refresh, supporting mid-teens EPS ambitions.
- Don Fandetti (Wells Fargo) questioned how the company views market share in the premium U.S. consumer segment and the recent moderation in international spending. Squeri stated that competition remains steady, but American Express continues to invest in marketing and innovation to maintain revenue and card fee growth.
- Erika Najarian (UBS) raised concerns about the financial impact of “rewards maximization” and the company’s approach to AI integration versus other banks. Squeri explained that American Express will take a risk-based approach, limiting agent access while ensuring consistent member experience, and expects engagement to drive better outcomes despite potential increased benefit utilization.
- Rob Wildhack (Autonomous Research) asked about the lower allowance coverage ratio and whether it reflects increased portfolio quality or conservative provisioning. Le Caillec attributed it to a shift toward more premium, fee-paying cardmembers, resulting in improved credit metrics and stable delinquency rates.
Catalysts in upcoming quarters
Going forward, the StockStory team will be tracking (1) the pace of AI-driven product rollouts and adoption, particularly the effectiveness of new personalized features and partnerships, (2) the impact of restructuring and efficiency measures on operating leverage and investment capacity, and (3) competitive dynamics in premium and commercial card segments. Regulatory developments and evolving customer behaviors in response to digital and AI tools will also be important markers of execution.
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