Archive · 24 Jul 2026
American Express shares drop despite strong earnings and revenue outlook
American Express, a company that serves wealthy customers, reported strong earnings and raised its revenue forecast.
However, its shares fell because investors are worried about increasing costs.
The company's revenue grew by 10%, and spending on its credit cards increased by 9%.
Despite these positive signs, expenses also rose by 12%, which concerned investors.
The company's CEO, Stephen Squeri, said that their investments have driven accelerated spend and revenue growth.
The University of Michigan's Surveys of Consumers showed that US consumer sentiment has improved, although people are still worried about high living costs.
American Express shares fell 5.34% despite strong earnings and a raised revenue forecast.
Quarterly revenue rose 10% to $19.6 billion, and total card spending increased 9% to $455.8 billion.
The company raised its full-year revenue growth forecast to 10% but left earnings outlook unchanged.
Second-quarter expenses increased 12% to $14.5 billion due to higher customer engagement costs.
The University of Michigan's Surveys of Consumers showed a rebound in US consumer sentiment from record lows in June.
- Who
- American Express Co.
- What
- Shares fell despite strong earnings and revenue outlook due to rising costs.
- When
- On Friday, with the stock's steepest intraday decline in nearly five months.
- Where
- New York
- Why
- Investors focused on rising expenses and higher spending on customer acquisition.
Investors' Concerns
Company's Optimistic Outlook
Stock Performance
Investors' Concerns
Investors are concerned about rising operating costs and higher spending on customer acquisition, leading to a 5.34% drop in American Express shares.
Company's Optimistic Outlook
The company has raised its full-year revenue growth forecast to 10%, reflecting strong momentum and healthy consumer activity.
Expenses vs. Revenue
Investors' Concerns
Second-quarter expenses increased by 12% to $14.5 billion, driven by higher customer engagement costs and investments in card enhancements.
Company's Optimistic Outlook
Quarterly revenue rose by 10% to $19.6 billion, and total card spending climbed by 9% year over year to $455.8 billion.
- Company
- American Express Co.
- Stock Decline
- 5.34%
- Revenue Growth Forecast
- 10%
- Quarterly Revenue
- $19.6 billion
- Total Card Spending
- $455.8 billion
- Earnings per Share
- $4.53
- Provision for Credit Losses
- $1.1 billion
- Consumer Sentiment
- Rebounded from record lows in June