American Express Company Q1 FY2026 earnings call

Steve Squeri mentioned strong start to year, revenue and EPS growth, card member spending growth, strong demand for premium products, investments in marketing and technology, and strategic use of AI. Christophe Lecayac detailed revenue growth, spend growth, credit performance, revenue lines growth, expenses, capital returns, and expectations for the year. Highlights include strong Q1 results, broad-based growth, premium product demand, credit performance, investments in marketing, technology, and premium value propositions, and progress on AI capabilities and commercial product expansions.

Revenue in the quarter grew 11% or 10% on an FX-adjusted basis. Card member spending grew 10% on a reported basis, highest quarterly growth in three years. International was fastest-growing segment with billings up double digits for 20th consecutive quarter on FX-adjusted basis. U.S. platinum portfolio saw accelerated spend growth after refresh. Millennial and Gen Z spending growth robust. Net card fees up 16% FX adjusted, NII up 12% FX adjusted, service fees and other revenue grew double digits. Total balances increased 7% year over year FX adjusted. Credit performance excellent with delinquency and write-off rates below 2019 levels.

Reaffirming full year 2026 guidance of 9% to 10% annual revenue growth and EPS of $17.30 to $17.90. Increased investments in marketing and technology due to strong results to date and confidence going forward. Expect card fee growth to pick up as year progresses with impact from Platinum refresh. NII growth expected to outpace balance growth for the year.

Macro and geopolitical environment uncertainty. Uncertainty in macroeconomic environment affecting reserves. Potential impact from exit of small business co-brand health for sale portfolios on certain metrics. AI brings added complexity and risk in agentic commerce, though company's closed-loop network and investments in technology and risk capabilities aim to address this.

Q: Ryan Nash from Goldman Sachs asked about momentum in business and use of over-delivery in marketing and tech spend.

A: Steve and Christophe responded on momentum potentially achieving revenue guidance, use of over-delivery to move ROI thresholds down, and AI benefits and technology appetite.

Q: Sanjay Sakrani from KBW asked about airline softness impact and fuel price impact.

A: Christophe said airline softness impact not large, fuel impact negligible.

Q: Don Fandetti from Wells Fargo asked about confidence in enhancing expense management for middle market SME.

A: Steve talked about focus on expense management software, acquisitions, and investment in the area.

Q: Erica Najarian from UBS asked about revenue and expense dynamics.

A: Steve mentioned reaffirming guidance and using over-delivery to invest in business.

Q: Mark DeVries from Deutsche Bank asked about green shoots in commercial services and product launch tailwind.

A: Steve said organic spend not as stressed, products take time to impact.

Q: Craig Moore from FT Partners asked about platinum refresh lift from existing vs new customers.

A: Steve said majority lift from tenured card members.

Q: Rick Shane from JPMorgan asked about younger cohort sensitivity to economic changes.

A: Steve and Christophe said younger cohort more adaptable, with strong credit performance.

Q: Rob Wildhack from Autonomous Research asked about spending and balance growth.

A: Christophe said balance growth in line with spending, not chasing balance growth.

Q: Jeff Adelson from Morgan Stanley asked about AI impact on jobs.

A: Steve said AI will cause job changes but create new jobs.

Q: Darren Peller from Wolf Research asked about agentic commerce and closed loop data.

A: Steve said closed loop data helps with fraud and risk in agentic commerce.

Q: Mihir Bhatia from Bank of America asked about marketing investments.

A: Christophe said directing incremental dollars to acquisition efforts.

Q: Terry Ma from Barclays asked about impact of commercial expansion on VCE.

A: Christophe said no impact as products take time to flow through P&L.

Q: Chris Kennedy from William Blair asked about opportunity with data and agentic relative to prior innovations.

A: Steve said it's an accelerant but hard to quantify early on