American Express’ Earnings Beat Shows the Premium Consumer Is Still Carrying More of the Economy Than Many Expected

The spending numbers were the clearest source of strength. Reuters reported that billed business, the total amount spent on AmEx cards, rose 9% on an FX-adjusted basis to $428 billion, the strongest growth in three years. American Express’ earnings release showed total revenue net of interest expense rising 10% to $18.9 billion and EPS up 18% from a year earlier. Chief Financial Officer Christophe Le Caillec told Reuters that growth was strong across categories, with retail spending up 11% and luxury retail up 18%, reinforcing the company’s argument that its customer base remains more insulated than mass-market lenders from macroeconomic pressure.

Travel was another important signal. Reuters said airline spending rose 8% even though Middle East conflict and fuel supply disruptions created a tougher backdrop for the sector. That matters because travel and entertainment have long been central to the AmEx model, and resilience there suggests higher-income households are still prioritising experiences despite elevated prices and uncertainty. The company’s official earnings materials also showed net income rising to $2.97 billion from $2.58 billion a year earlier, confirming that spending momentum translated into bottom-line leverage rather than just top-line volume.

At the same time, the results were not a picture of risk-free growth. Reuters reported that provisions for credit losses increased to $1.3 billion from $1.2 billion a year earlier, even though management still described overall credit performance as strong. That combination is important for investors because it suggests AmEx is still managing for a world where consumer credit remains healthy but not immune from deterioration. The market’s initial reaction captured that balance: despite the earnings beat, the stock slipped about 1.1% in volatile trading, implying that investors were satisfied with the quarter but still cautious about how much of this premium-spending strength can be extrapolated.

The larger takeaway is that American Express remains one of the cleaner ways to track the upper tier of U.S. consumption. The company reaffirmed its 2026 guidance for 9% to 10% revenue growth and full-year EPS of $17.30 to $17.90, signalling confidence that its premium positioning, customer loyalty and travel exposure can continue to offset macro headwinds. In a market that is increasingly focused on whether the consumer is finally slowing, AmEx’s quarter suggests the answer is still segmented: pressure exists, but for wealthier households and businesses, spending has not broken in the way many recession-minded investors expected.