American Express 1Q Profit Rises on Premium Customer Strength -- Update

Published: 2026-04-23 10:35:42 ET AXP

Published on 04/23/2026 at 10:35 am EDT

By Nicholas G. Miller

American Express reported a higher first-quarter profit on the back of continued spending from upper-income customers.

"We continue to see strong demand and engagement with our premium products across our customer base," said Chief Executive Stephen Squeri in a call with analysts.

The company said card-member spending increased 9% on a currency adjusted basis, the highest growth rate in three years. Meanwhile, spending at luxury retail merchants was up 18% in the quarter, while restaurant spending rose 9%. Airline spending also grew 8%, but the company said airline growth softened in March and April due to travel disruptions from the Middle East conflict.

American Express also said that spending growth among its Millennial and Gen Z clients, which have higher incomes than the rest of their age cohort, has remained robust. "It's not every millennial and Gen Z, it's the cream of the crop," Squeri said

For the company's saving products, Millennials and Gen Z customers make up over half of the accounts and a third of the balances. "It tells you something about the profile of these younger customers that are joining the franchise. They have savings," said Chief Financial Officer Christophe Le Caillec.

Last year, American Express unveiled its updated consumer and business Platinum cards with a higher annual fee. The company is seeing accelerated spend growth following the refresh while maintaining high retention rates, Squeri said Thursday.

For the first quarter, the company posted net income of $2.97 billion, or $4.28 a share, up from $2.58 billion, or $3.64 a share, in the prior-year period. Analysts polled by FactSet had expected $4 a share.

Consolidated total revenue net of interest expense rose 11% to $18.91 billion. Wall Street had expected $18.61 billion.

Consolidated expenses rose 11% to $13.9 billion. The company said the increase was driven by higher customer engagement costs due to increased card member spending, the refresh of its U.S. Platinum Card and the usage of travel and lifestyle benefits.

The company reiterated its full-year guidance of 9% to 10% revenue growth and earnings of $17.30 to $17.90 a share. Analysts see full-year earnings of $17.56 a share. American Express also said it had decided to increase its investments in marketing and technology.

Write to Nicholas G. Miller at [email protected].

(END) Dow Jones Newswires

04-23-26 1034ET