American Express raises annual profit outlook as affluent customers keep spending

American Express AXP-N raised its profit forecast for 2026 on Friday after reporting strong third-quarter results as its affluent customers swiped their cards to pay for travel, dining out and shopping.

By targeting consumers with high credit scores and more disposable income, the credit card giant has built a moat around its business to keep broader economic slowdowns and uncertainty at bay.

Billed business, a measure of total spending on all Amex-issued cards, rose 8 per cent in the third quarter to US$454-billion. Revenue climbed 9 per cent to $20.1-billion.

“Business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality,” AmEx CEO Stephen Squeri said in a statement.

Its shares were last up 0.8 per cent in premarket trading after the company forecast an annual profit in the range US$18.30 to US$18.60 per share, compared with its prior expectation of between US$17.30 and US$17.90.

The company has invested heavily in attracting younger consumers, particularly Gen Z and millennials, as it seeks to build long-term customer relationships and expand its global market share to sustain growth.

Amex’s adjusted profit rose to US$4.68 per share in the quarter ended Sept. 30, compared with US$4.14 per share a year earlier.

Although the company’s results are not a comprehensive gauge of consumer health given its focus on premium customers, they offer an early look at spending patterns among the affluent, giving investors insight into discretionary spending trends.

More broadly, executives at major U.S. banks also highlighted consumer resilience across income brackets when reporting results earlier this month, pointing to continued strength in spending and stable credit metrics.

Amex set aside US$1-billion in consolidated provisions for credit losses in the quarter versus US$1.3-billion in the year-ago period.

Loan-loss provisions, often referred to as rainy-day reserves, reflect how much lenders set aside to cover expected loan losses, offering insight into their outlook for borrowers’ ability to repay debt.