# American Express Company (AXP) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/AXP/thesis · /stocks/AXP/memo

## Financial Snapshot

---
ticker: AXP
step: 04
generated: 2026-05-12
source: quick-research
---

### American Express Company (AXP) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|--------|--------|--------|--------|------------|
| Total Revenue | $60.5B | $65.9B | $72.0B | +9.3% |
| Discount Revenue | ~$32B | ~$35B | ~$38B | mid-single-digit |
| Net Card Fees | $6.7B | $8.5B | $10.0B | +18% |
| Net Interest Income | $13.7B | $14.9B | ~$16B | +7% |
| Provision for Credit Losses | $4.9B | $5.2B | $5.4B | +5% |
| Operating Income | $13.0B | $13.5B | $14.0B | +4% |
| Operating Margin | 21.5% | 20.5% | 19.4% | -110 bps |
| Net Income | $8.4B | $10.1B | $10.0B+ | ~flat (ex-one-time gain) |
| Diluted EPS | $11.21 | $14.01 | $15.38 | +9.8% (or +15% ex one-time) |

#### Spending Volume & Cardholder Metrics

| Metric | FY2024 | FY2025 |
|--------|--------|--------|
| Worldwide Billed Business | $1.55T | ~$1.65T |
| Cards-in-Force (proprietary) | 83.6M | ~88M |
| New Account Premium Mix | 70%+ | 77%+ |
| Millennial + Gen Z Account Share (new accts) | ~60% | 65% |
| Gen Z Q4 Spending Growth | +30%+ | +38% YoY |
| 30 Consecutive Quarters Double-Digit Card Fee Growth | confirmed | confirmed |

#### Cash Flow & Capital Allocation (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$18B |
| Free Cash Flow | ~$15B+ |
| Share Repurchases | ~$5–7B |
| Dividend (Quarterly) | $0.95 (+16% in early 2026) |
| Annual Dividend | $3.80 |
| Dividend Yield | ~1.3% |
| New Buyback Authorization | $16B |
| Marketing Spend (annual) | $6B (FY25) |
| Technology Budget | $5B annual |
| Berkshire Hathaway Ownership | ~21% |
| Credit Card Loans (HFI) | ~$135B |
| Net Write-off Rate | ~1.8% (vs. ~3–4% peer issuers) |

#### FY2026 Guidance

| Metric | 2026 Guide |
|--------|-----------|
| Revenue Growth | +9–10% |
| Adjusted EPS | $17.30–17.90 (+12–16%) |
| Marketing Spend | $6B+ continued |
| Tech Investment | $5B+ |

#### Key Ratios (approximate)
- P/E: ~17x (FY26 EPS midpoint) | Price/Book: ~6x | ROE: ~35%+
- Revenue Growth (FY25): +9.3% | Net Income Growth: ~+15% ex one-time
- Operating Margin: ~19–21% | Net Write-off Rate: ~1.8% (industry-leading)
- Dividend Yield: ~1.3% | Buyback Yield: ~3.5%
- Capital Return Yield: ~5%

#### Growth Profile
FY25 marked another year of double-digit underlying earnings growth driven by premium card-fee growth (+18%), Millennial + Gen Z spending acceleration, and continued international expansion. The 30 consecutive quarters of double-digit card fee growth is the standout metric — reflecting that AmEx has built a structurally compounding fee-based revenue stream that doesn't require accelerating volume to sustain. Operating margin compressed slightly (~110 bps to 19.4%) on continued marketing + technology investment ($6B + $5B respectively), which management views as long-term ROI vs. near-term margin.

FY26 guide of +9–10% revenue + +12–16% adjusted EPS suggests continued operating leverage as fee revenue compounds, marketing/technology investments reach inflection, and premium-card cohorts mature. Dividend hiked +16% to $0.95 quarterly; $16B buyback authorization indicates management's capital-return commitment.

#### Forward Estimates
FY2026 Guide:
- Revenue: +9–10% (~$78–79B)
- Adjusted EPS: $17.30–17.90

Bull case: Gen Z + Millennial premium-card acceleration continues; international expansion drives mix-shift to higher-margin geographies; net write-off rate remains industry-leading; EPS reaches $19+ in FY27 on operating leverage. Bear case: Premium-card saturation; competition from Chase Sapphire Reserve / Capital One Venture X compresses card-fee economics; recession-driven credit-loss spike from younger less-tenured cardholders; EPS misses guide. Consensus targets ~$330–360 vs. trading ~$280–305 (~15–25% implied upside).

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/AXP/fundamental

## Navigation

- Overview: /stocks/AXP
- Financials (this page): /stocks/AXP/financials
- Thesis: /stocks/AXP/thesis
- Investment Memo: /stocks/AXP/memo
- Coverage universe: /stocks