Updated version 2 - American Express raises 2026 profit forecast, driven by growth in travel and entertainment spending

The entire text was rewritten based on details from the divisional performance financial report briefing. Comments from the Chief Financial Officer were added in the fourth paragraph, analyst comments were added in the eleventh paragraph, and the stock price information was updated.

Manya Saini

Reuters, October 23 - After posting strong third quarter results on Friday, American Express AXP.N raised its 2026 profit outlook above Wall Street expectations, mainly thanks to a surge in airline spending boosting its travel and entertainment business.

In recent months, due to Middle Eastern conflicts and global disruptions in oil supply leading to soaring fuel prices, major airlines worldwide have been increasing their ticket prices.

American Express's travel and entertainment spending in the third quarter grew by 10% year-on-year, with airline spending jumping by 13%, while restaurant spending rose 9%, serving as major driving forces.

Chief Financial Officer Christophe Le Caillec, speaking about the airline segment in an interview with Reuters, said: “Of course, this is in part affected by higher average spend and increased ticket prices.”

By targeting affluent consumers with high credit scores and higher disposable incomes, the credit card giant has built a moat around its business to fend off broader economic slowdowns and uncertainties.

Billed business—in other words, the total consumption generated by all American Express-issued credit cards—grew by 8% in the third quarter, reaching $454 billion. Revenue increased 9%, reaching $20.1 billion.

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According to data compiled by London Stock Exchange Group (LSEG), American Express expects its full-year adjusted earnings per share to be between $17.60 and $17.90, with the midpoint well above the expected $17.63.

The company has invested heavily to attract younger consumers—especially Generation Z and Millennials—in order to build long-term customer relationships and expand its global market share, thereby sustaining growth momentum.

In the quarter ending September 30, American Express reported adjusted earnings per share of $4.68, well above Wall Street's expected $4.48.

After the financial report was released, the stock fell 1.3% in highly volatile premarket trading. Truist analyst Brian Foran wrote in a research note that if this decline persists, it would mark the ninth time in 11 quarters that the stock experienced “earnings beat but share price decline.”

“Maybe we’re all just working too hard, and investors’ strategy is to ‘short the current quarter, go long on the remaining quarters,’” he added.

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