American Express Q3 2026 Earnings: Card Fee Growth Rises to 16%

American Express Q3 2026 earnings show card fee growth re-accelerating as the U.S. Platinum price increase flows through. The company reported results for the third quarter ended September 30, 2026, in an 8-K earnings release and its 10-Q on October 23, 2026, and its interest business kept growing after the exit of small business cobrand portfolios [1][2]. Four questions framed the quarter: whether card fee growth would accelerate from 15%, whether U.S. consumer spending could stay strong while benefit costs stayed under control, whether net interest income and credit would hold up after the portfolio exits, and how much growth Commercial Services would keep. Card fees and the interest business were confirmed this quarter. U.S. consumer billings growth slowed to 9.4%, and Commercial Services pretax income fell 6% [2][3]. Overall, the revenue side of the Platinum price increase is now visible in reported results and benefit cost growth has started to ease, but the margin benefit may not fully show until the fourth quarter, and part of this quarter's lower provision came from a non-recurring model change.

American Express issues cards, signs merchants and runs its own payments network, serving premium consumers, small businesses and large corporations [4]. It earns money from four revenue lines: merchant discount revenue, card fees, net interest income on revolving balances, and service fees. Its largest costs are rewards, benefits and partner payments that grow with spending and benefit usage, which the company groups as variable customer engagement (VCE) expenses [4].

Change one: card fee growth rose to 16% as the Platinum increase rolled in

Card fee growth picked up again in the third quarter. Net card fees were $2.969 billion, up 16% year over year and 17% on an FX-adjusted basis, compared with 15% in the second quarter [2][3]. The average fee per card was $136, up 14%. The company acquired 3.1 million proprietary new cards, and 76% of new accounts chose fee-paying products [2][3]. In the 10-Q, the company attributed the growth to higher average fees on premium cards and growth in its premium card portfolios [5].

The data show no visible attrition from the price increase. Management said spend retention in the U.S. consumer Platinum portfolio was 99% one year after the refresh [3]. That figure measures spend retention; the company did not disclose account attrition. The cobrand portfolio sales also shrank the denominator of the average fee per card, and that effect cannot be separated.

Pressure on the cost side has started to ease. Card Member services expense was $2.006 billion, up 36%, down from 50% growth in the second quarter; the 10-Q attributed it to new U.S. Platinum benefits and higher benefit usage [2][5]. Card fees rose by $418 million in the quarter while Card Member services expense rose by $529 million, so the fee increase did not yet cover the added benefit cost [2]. The company expects VCE growth to moderate significantly in the fourth quarter and return to pre-refresh growth rates [3]. Management confirmed that the expected inflection in card fee growth had arrived, but it did not repeat its earlier statement that 2026 would exit at a high-teens growth rate [3][6].

Change two: net interest income still grew 10% despite the portfolio exits

Net interest income kept growing despite the drag from the portfolio exits. Third-quarter net interest income was $4.940 billion, up 10% year over year; management estimated that the small business cobrand exits reduced growth by about 2 percentage points [2][3]. Period-end Card balances grew 7%, the net interest yield rose to 8.5% from 8.2% a year earlier, and the average rate paid on savings deposits declined [2][5].

Credit metrics were also stable. The principal-only net charge-off rate for consumer and small business fell to 1.8%, and 30+ day delinquencies were 1.2% [2]. The year-over-year decline in provisions came mainly from a change in reserve direction: the Card balance reserve moved from a $109 million build a year earlier to a $235 million release, which the 10-Q attributed mainly to enhancements in its credit loss models [5]. That part will not repeat. In the fourth quarter the Amazon portfolio exit will affect a full quarter, so the drag will also grow.

Other areas: slower consumer spending and pressure on Commercial Services profit

U.S. consumer billed business grew 9.4%, down from 11% in the second quarter; management attributed the slowdown to retail promotional days falling in the second quarter [3]. Travel and entertainment spending still grew 10%, and the VCE-to-revenue ratio was 44.3%, inside the company's full-year range of 44% to 45% [2][3]. Commercial Services billed business grew 3%, or 5% excluding the portfolio exits according to the company. Segment pretax income was $1.029 billion, down 6%, mainly because marketing expense rose 29% [2][3].

Conclusion

The quarter confirmed the durability of card fee growth and the stability of the interest business after the portfolio exits. The company raised its full-year EPS guidance, excluding the GBTG stake sale gain and restructuring charge, to $17.60 to $17.90, and kept full-year revenue growth guidance at 10% [1]. Profit conversion still depends on whether VCE growth slows clearly in the fourth quarter, and part of this quarter's profit growth came from a model-driven reserve release. The next evidence to look for is whether card fee growth stays high once the price increase is in both periods, and how much growth net interest income and Commercial Services keep after a full quarter without the Amazon portfolio.

Sources

[1] AXP 8-K filed 2026-10-23 Exhibit 99.1, 2026-10-23, American Express 8-K earnings release, https://www.sec.gov/Archives/edgar/data/4962/000000496226000405/q326exhibit991.htm [2] AXP 8-K filed 2026-10-23 Exhibit 99.2, 2026-10-23, American Express 8-K statistical supplement, https://www.sec.gov/Archives/edgar/data/4962/000000496226000405/q326exhibit992.htm [3] AXP Q3 2026 earnings call 2026-10-23, 2026-10-23, American Express earnings call, https://ir.americanexpress.com/events-and-presentations/default.aspx [4] AXP 10-K filed 2026-02-06 · business overview and revenue types, 2026-02-06, American Express 10-K, https://www.sec.gov/Archives/edgar/data/4962/000000496226000080/ [5] AXP 10-Q filed 2026-10-23 MD&A, 2026-10-23, American Express 10-Q, https://www.sec.gov/Archives/edgar/data/4962/000000496226000409/axp-20260930.htm [6] AXP 2Q26 earnings call 2026-07-24 · Drillr structured summary, 2026-07-24, American Express earnings call (Drillr structured summary), https://ir.americanexpress.com/events-and-presentations/default.aspx