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olivLaw · US equity research

American Express Company AXP

Finance Services · SIC 6199 · Vertical: Finance Services (SIC 6199)

325.50USD−0.76% · 1 dayClose 03 Nov 2026

American Express is a global payments and premium lifestyle brand that issues cards, acquires merchants and runs its own payments network. Total revenues net of interest expense reached 72.2 bn USD in fiscal 2025, and the company reported diluted EPS of 5.42 USD for the third quarter of 2026, which makes it a useful reference for premium consumer spending.

At the close of 03 Nov 2026, American Express Company (AXP) stock was 325.50 USD (−0.76% on the day), with market capitalisation 218.3 bn USD, P/E 18.3 on diluted EPS of 17.80 USD over the last 12 months, dividend yield 1.13%, beta 1.24, 52-week range 292.27–384.89 USD. Latest reported quarter (Q3 2026): revenue of 11.2 bn USD (+7.8% YoY), net income of 3.7 bn USD (+27.9% YoY), diluted EPS 5.42 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
218.3 bn USD
shares as of 15 Oct 2026
P/E (TTM)
18.3
Diluted EPS TTM 17.80 · TTM to 30 Sept 2026
E/P (TTM)
5.47%
TTM to 30 Sept 2026
Dividend yield
1.13%
DPS 12m 3.67
Beta (2y)
1.24
Volatility (1y) 26%
52-week range
292.27384.89

Price history

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Technical reading

RSI (14)
58.5
strong (55–70)
Bollinger (20, 2)
302.47 – 329.05
in the upper half of the band · %B 0.87 · band width 8.4%
SMA 50 / 200
316.80 / 325.73
mixed trend
MACD (12, 26, 9)
2.55 / 0.97
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+7.5%−2.0%+9.5 pp—
3 months−6.1%−2.2%−4.0 pp—
6 months+3.0%+4.3%−1.2 pp—
Year to date−12.0%+10.6%−22.6 pp—
1 year−10.0%+10.5%−20.5 pp−47.5%
3 years+113.1%+73.7%+39.4 pp−58.0%
5 years+88.7%+61.7%+26.9 pp—
Max drawdown (1y)
−24.1%
11 Dec 2025 → 27 Mar 2026
Max drawdown (5y)
−32.0%
16 Feb 2022 → 30 Sept 2022
Compound annual growth (5y)
+13.5%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
11.2 bn USD
+7.8% YoY
Net income
3.7 bn USD
+27.9% YoY
Diluted EPS
5.42
+30.9% YoY
net / operating
33.0% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue10.0 bn9.6 bn10.3 bn10.4 bn10.9 bn10.5 bn11.2 bn11.2 bn
Depreciation & amortisation428.0 m433.0 m427.0 m ≈455.0 m ≈462.0 m468.0 m488.0 m ≈494.0 m ≈
Pre-tax income2.8 bn3.3 bn3.6 bn3.8 bn3.1 bn3.8 bn4.1 bn4.5 bn
Income tax586.0 m746.0 m665.0 m923.0 m628.0 m807.0 m961.0 m819.0 m
Net income2.2 bn2.6 bn2.9 bn2.9 bn2.5 bn3.0 bn3.1 bn3.7 bn
Diluted EPS3.08 ≈3.644.084.143.57 ≈4.284.535.42
Operating cash flow5.8 bn4.8 bn4.4 bn ≈6.2 bn ≈3.1 bn3.8 bn5.4 bn ≈5.4 bn ≈
Capex495.0 m430.0 m619.0 m ≈654.0 m ≈722.0 m1.1 bn898.0 m ≈947.0 m ≈
Dividends paid510.0 m509.0 m593.0 m ≈586.0 m ≈583.0 m583.0 m665.0 m ≈668.0 m ≈
Share repurchases1.0 bn1.2 bn1.4 bn ≈2.4 bn ≈899.0 m1.9 bn2.3 bn ≈1.6 bn ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 57 percentile of its own 44-quarter history (min 10.7, median 17.3, max 34.1; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue26.6 bn28.2 bn22.0 bn27.7 bn34.2 bn37.2 bn38.8 bn41.3 bn
Revenue YoY+7.4%+5.8%−22.0%+26.1%+23.5%+8.8%+4.3%+6.4%
Net income6.9 bn6.8 bn3.1 bn8.1 bn7.5 bn8.4 bn10.1 bn10.8 bn
Net income YoY+151.9%−2.3%−53.6%+157.1%−6.8%+11.4%+21.0%+7.0%
Diluted EPSunavailable7.993.7710.029.8511.2114.0115.38
Diluted EPS YoYunavailableunavailable−52.8%+165.8%−1.7%+13.8%+25.0%+9.8%
net %26.0%24.0%14.3%29.1%22.0%22.5%26.1%26.2%
Free cash flow7.6 bn12.0 bn4.1 bn13.1 bn19.2 bn17.0 bn12.1 bn16.0 bn

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
47.8 bn USD
Financial debt
57.8 bn USD
Net debt
10.0 bn USD
Equity
33.5 bn USD
Total assets
300.1 bn USD
Debt / equity
1.73x
Current ratio
unavailable
ROE
34.0%
ROA
3.8%
FCF margin
38.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
37.2 bn
2024
38.8 bn
2025
41.3 bn

SEC (XBRL)· 06 Feb 2026verified

Depreciation & amortisation
2023
1.7 bn
2024
1.7 bn
2025
1.8 bn

SEC (XBRL)· 06 Feb 2026verified

Interest expense
2023
6.8 bn
2024
—
2025
—

SEC (XBRL)· 09 Feb 2024verified

Pre-tax income
2023
10.5 bn
2024
12.9 bn
2025
13.8 bn

SEC (XBRL)· 06 Feb 2026verified

Income tax
2023
2.1 bn
2024
2.8 bn
2025
3.0 bn

SEC (XBRL)· 06 Feb 2026verified

Net income
2023
8.4 bn
2024
10.1 bn
2025
10.8 bn

SEC (XBRL)· 06 Feb 2026verified

Diluted EPS
2023
11.21
2024
14.01
2025
15.38

SEC (XBRL)· 06 Feb 2026verified

Weighted average diluted shares
2023
736.0 m
2024
713.0 m
2025
696.0 m

SEC (XBRL)· 06 Feb 2026verified

Dividend per share
2023
2.40
2024
2.80
2025
3.28

SEC (XBRL)· 06 Feb 2026verified

Balance sheet · USD

Cash
2023
46.6 bn
2024
40.6 bn
2025
47.8 bn

SEC (XBRL)· 06 Feb 2026verified

Property, plant & equipment, net
2023
5.1 bn
2024
5.4 bn
2025
6.1 bn

SEC (XBRL)· 06 Feb 2026verified

Goodwill
2023
3.9 bn
2024
4.2 bn
2025
4.9 bn

SEC (XBRL)· 06 Feb 2026verified

Intangibles (excl. goodwill)
2023
98.0 m
2024
123.0 m
2025
90.0 m

SEC (XBRL)· 06 Feb 2026verified

Total assets
2023
261.1 bn
2024
271.5 bn
2025
300.1 bn

SEC (XBRL)· 06 Feb 2026verified

Short-term debt
2023
1.3 bn
2024
1.4 bn
2025
1.4 bn

SEC (XBRL)· 06 Feb 2026verified

Long-term debt
2023
47.9 bn
2024
49.7 bn
2025
56.4 bn

SEC (XBRL)· 06 Feb 2026verified

Total liabilities
2023
233.1 bn
2024
241.2 bn
2025
266.6 bn

SEC (XBRL)· 06 Feb 2026verified

Equity
2023
28.1 bn †
2024
30.3 bn †
2025
33.5 bn †

SEC (XBRL)· 06 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
18.6 bn
2024
14.1 bn
2025
18.4 bn

SEC (XBRL)· 06 Feb 2026verified

Capex
2023
1.6 bn
2024
1.9 bn
2025
2.4 bn

SEC (XBRL)· 06 Feb 2026verified

Free cash flow
2023
17.0 bn ≈
2024
12.1 bn ≈
2025
16.0 bn ≈

SEC (XBRL)· 06 Feb 2026derived

Investing cash flow
2023
-24.4 bn
2024
-24.4 bn
2025
-22.9 bn

SEC (XBRL)· 06 Feb 2026verified

Financing cash flow
2023
18.4 bn
2024
4.4 bn
2025
11.2 bn

SEC (XBRL)· 06 Feb 2026verified

Dividends paid
2023
1.8 bn
2024
2.0 bn
2025
2.3 bn

SEC (XBRL)· 06 Feb 2026verified

Share repurchases
2023
3.7 bn
2024
6.0 bn
2025
5.8 bn

SEC (XBRL)· 06 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
6.4%
computed by olivLawFY 2025
Revenue CAGR 3Y
6.5%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
13.5%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
7.0%
computed by olivLawFY 2025
Net income CAGR 3Y
13.0%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
28.1%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
9.8%
computed by olivLawFY 2025
EPS CAGR 3Y
16.0%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
32.5%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
31.8%
computed by olivLawFY 2025

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
27.9%
computed by olivLawTTM to 30 Sept 2026
FCF margin
31.7%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
35.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
4.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
20.6%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
18.0%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
16.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
1.7x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
unavailable
input data missing
Quick ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
17.6 bn USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
3.7 bn USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
13.9 bn USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
113.5%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
218.3 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
235.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
17.8x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
18.3x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
5.5%
computed by olivLawTTM to 30 Sept 2026
P/B
6.1x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
5.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
5.4x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
15.7x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
6.4%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
1.1%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
4.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 58.3% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

325.50 USD

03 Nov 2026Source: olivLaw, closing series

Market cap: 218.3 bn USD

Key indicators

Market capitalisation
218.3 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
18.3x
computed by olivLawTTM to 30 Sept 2026
P/B
6.1x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
35.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
27.9%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
6.4%
computed by olivLawFY 2025
Dividend yield
1.1%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

25/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 15 Oct 2026
Source: SEC (XBRL)published 23 Oct 2026
verified 2636derived 216

Score by group

58% · Insufficient data

Estimated value range

Low
124.85
USD per share
Mid
412.91
USD per share
High
528.99
USD per share
Price: 325.50 USD
The price is within the range
Potential to the central value: 26.9% (value / price − 1)
Margin of safety: 21.2% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 124.85 – 528.99 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/E124.85 – 528.99 (Mid 412.91)
    9 companies used · median multiple 23.2x · quartiles 7.0x – 29.7x
    ATCH, JFU, NU, PGY, PURR, RHLD, SNFCA, SOFI, UPST
  • Dividend discount (DDM)outside the aggregate43.10 – 57.97 (Mid 49.44)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Finance Services (SIC 6199)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 58.3% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality27.9%86 (vs peers)11%
FCF conversion · Quality113.5%100 (on a fixed band)11%
Revenue CAGR 3Y · Growth6.5%54 (on a fixed band)14%
EPS CAGR 3Y · Growth16.0%100 (on a fixed band)14%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheetunavailableunavailable—
P/E (TTM) · Valuation18.3x64 (vs peers)18%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation6.4%80 (on a fixed band)14%
Shareholder yield (distributions) · Returns4.2%60 (on a fixed band)11%
Payout ratio (FCF) · Returns18.0%100 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/3 factors with a value
  • Growth77/100 · 2/2 factors with a value
  • Quality93/100 · 2/3 factors with a value
  • Returns76/100 · 2/2 factors with a value
  • Valuation71/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

AMERICAN EXPRESS CO (AXP). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 41.3 bn USD in 2025; YoY growth 6.4%; net margin 27.9%; ROE 35.9%.

The estimated value range is 124.85–528.99 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 412.91 USD, the price of 325.50 USD leaves a potential of 26.9% (value / price − 1) and a margin of safety of 21.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 27.9%
  • FCF conversion: 113.5%
  • EPS CAGR 3Y: 16.0%
  • FCF yield: 6.4%
  • Payout ratio (FCF): 18.0%

What contradicts it

No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA.

Versus the vertical median

Finance Services (SIC 6199) · same industry (4-digit SIC) · compared with 39 companies

The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.

Multiples and returns vs the median

P/E
18.3x
vertical median 24.1x
below median (−24.1%)
EV/EBITDA
—
vertical median —
P/S
5.0x
vertical median 3.8x
above median (+29.2%)
P/B
6.1x
vertical median 1.3x
above median (+365.1%)
ROE
35.9%
vertical median -25.4%
above median
Net margin
27.9%
vertical median -117.2%
above median
EBIT margin
—
vertical median -132.4%
Revenue YoY
6.4%
vertical median 21.9%
below median (−70.8%)
Net debt/EBITDA
—
vertical median —
Dividend yield
1.1%
vertical median 0.9%
above median (+26.2%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
AXPAmerican Express Co218.3 bn18.335.9%27.9%+6.4%−10% / +113%
ARBKArgo Blockchain PLC45.2 bn——-117.2%−7.0%−97% / −99%
COINCoinbase Global, Inc.38.5 bn—-4.7%-12.5%+9.4%−47% / +17%
SOFISoFi Technologies, Inc.21.7 bn35.07.1%104.3%+23.1%−44% / +130%
MARAMara Holdings, Inc.2.7 bn—-107.2%-430.2%+38.2%−42% / −43%
UPSTUpstart Holdings, Inc.2.3 bn39.98.0%4.9%+64.0%−48% / −13%
PURRHyperliquid Strategies Inc1.9 bn3.032.6%3,229.8%unavailableunavailable / unavailable
CLSKCleanSpark, Inc.1.7 bn—-68.6%-130.2%+102.2%−55% / +9%
BTDRBitdeer Technologies Group1.5 bn—-196.7%-171.3%−5.1%−51% / +45%
RHLDResolute Holdings Management, Inc.1.0 bn24.1—4.2%+9.9%−26% / unavailable
CDChaince Digital Holdings Inc.741.4 m—-12.3%-182.5%+277.9%−30% / +622%
GDOTGreen Dot Corp727.1 m—-2.8%-1.1%+20.7%+2% / +59%
TRONTron Inc.664.1 m96.83.8%135.6%+10.0%−24% / −48%
JFU9F Inc.536.7 m23.24.7%125.2%+12.2%−52% / −43%
BTBTBit Digital, Inc.300.9 m—-56.7%-237.2%+5.1%−65% / −68%
CANGCango Inc.272.7 m—-130.8%-90.4%+524.3%−92% / −76%
BGINBgin Blockchain Limited203.6 m—-134.0%-262.6%−77.7%−38% / unavailable
CNTNCanton Strategic Holdings, Inc.172.1 m—-43.1%—unavailable−17% / −83%
USBCUsbc, Inc.166.5 m—-414.1%—−100.0%−47% / −97%
SNFCASecurity National Financial Corporation166.1 m6.59.0%11.1%+3.0%+15% / +37%
TONXTon Strategy Company159.7 m—-75.5%-532.8%+1,327.8%−15% / −93%
BMHLBluemount Holdings Limited79.0 m61,098.226.2%18.8%unavailable−8% / unavailable
UPXIUpexi, Inc.62.9 m—-1,356.3%-984.3%+58.1%−73% / −95%
SGRXSangrix Inc.40.8 m—-300.3%-36,190.3%−98.6%−99% / −100%
AVXAvax One Technology Ltd.34.9 m—-189.6%-1,533.9%+8,709.3%−80% / −100%

1- and 3-year price returns: for AXP from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
201.49
Total return -37% · Per year -37%
355.88
Total return 11% · Per year 11%
535.61
Total return 66% · Per year 66%
3 years
203.38
Total return -35% · Per year -13%
403.45
Total return 28% · Per year 9%
665.56
Total return 109% · Per year 28%
5 years
205.29
Total return -32% · Per year -7%
457.38
Total return 48% · Per year 8%
827.05
Total return 163% · Per year 21%
What moves the 3-year price the most
  • Exit P/E± 100.86
  • Net margin± 70.60
  • Annual revenue growth± 56.88
  • Annual dilution± 5.93

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

American Express is a global payments and premium lifestyle brand that issues cards, acquires merchants and runs its own payments network. Total revenues net of interest expense reached 72.2 bn USD in fiscal 2025 1, and the company reported diluted EPS of 5.42 USD for the third quarter of 2026 3, which makes it a useful reference for premium consumer spending.

SWOT

Strengths

  • The company has a premium customer base with high spending and low credit risk, supported by conservative loss rates and a high return on equity 12.
  • The integrated model, combining card issuing, merchant acceptance and its own network, gives data from both ends of a transaction and supports a differentiated experience 1.
  • The brand is considered among the most valuable in the world, and the company has received recognition for customer service 13.

Weaknesses

  • The company is smaller than some competitors by purchase volume in many countries, which can limit merchant acceptance 1.
  • Card Member rewards and service costs have in some periods grown faster than revenues, which can pressure margins 1.
  • Dependence on a major strategic partner, such as an airline, concentrates both revenue and risk in one relationship 1.

Opportunities

  • Expansion into business segments, B2B payments and expense management solutions could open new revenue sources 13.
  • Growing acceptance outside the United States, including in large Asian markets, could support transaction volume 3.
  • Integrating artificial intelligence and agentic commerce could strengthen the company's position if applied effectively 13.

Threats

  • Regulations capping credit card interest rates could reduce interest income 1.
  • Competing payment mechanisms, including real-time transfers and digital currencies, could reduce the share of spending on the company's cards 1.
  • Geopolitical tensions and trade wars could reduce travel spending and cross-border business 1.

Risks

  • Sensitivity to the broader economyhigh

    Revenues depend on consumer and business activity, and an economic slowdown or persistent inflation could reduce card spending and demand for products 1.

  • Competition and pressure on feeshigh

    Larger competitors or those with different business models may obtain better terms from merchants and attract customers, which could reduce the company's revenues 1.

  • Regulation and legislative frameworkmedium

    Regulatory changes, including interest rate caps and new rules for stablecoins, could alter the revenue structure and compliance costs 1.

  • Credit riskmedium

    A deterioration in economic conditions could raise delinquencies and loss rates, affecting provisions for credit losses 12.

  • Dependence on strategic partnersmedium

    The relationship with a major airline partner represents a significant share of the card portfolio, and a change in terms or an end to the agreement could affect revenues 1.

Investment thesis

What would need to be true (bull case)

  • If demand for premium cards remains robust, the company could keep growing revenues, as the reported growth in the first nine months of 2026 suggests 2.
  • Rising merchant acceptance outside the United States could expand processed volume and fee revenue 3.
  • If the Membership Model and partnerships keep attracting high-spending customers, the company could sustain a high return on equity 12.

What would break the thesis

  • If digital payments and alternative financing expand, the company's share of card spending could decline 1.
  • Regulatory pressure on interest rates could reduce lending revenue, an important part of the business model 1.
  • If rewards and customer service costs grow faster than revenues, margins could be compressed 1.

What to watch

  • Trend of billed business and revenues against the revised EPS guidanceQ4 2026
  • Net write-off rate and the trend of provisions for credit lossesQ4 2026
  • Effect of interest rate caps on credit cards and stablecoin legislation2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The company operates three interconnected businesses: issuing credit and charge cards to consumers, small businesses and corporations, acquiring merchants, and running its own card network for processing and settlement. Worldwide billed business was 1670 bn USD in 2025 1, and 86.6 million proprietary cards were in force at December 31, 2025 1. The model depends on revenues from Card Member spending, interest and annual fees, supported by a benefits program called the Membership Model.

The company holds direct relationships with both Card Members and merchants, which gives it data from both ends of a transaction 1. This is used to reduce fraud and assess credit risk. Partnerships, such as the one with Delta Air Lines, are central to attracting high-spending customers.

From 2026 the company presents card balances combined as Card balances, reflecting the expansion of lending features on its charge card portfolio 2. The change does not alter how balances or credit loss reserves are recognised or measured 2.

Segments

Reportable segments

The company reports four segments: U.S. Consumer Services, Commercial Services, International Card Services and Global Merchant and Network Services 1. The first three focus on card issuing for U.S. consumers, small and mid-sized businesses and international markets, while the last manages merchant relationships and the payments network 1.

Market context

The premium card payments market is concentrated, and the company competes directly with Visa and Mastercard, which the sources describe as larger than it in most countries by purchase volume 1. Growth depends on spending by consumers and businesses, which made up about 41 percent of billed business in 2025 1.

Trends

  • Growing card spendingtailwind

    Card spending has grown steadily, and the company reported higher billed business in both 2025 and the first nine months of 2026 12. This supports discount revenue, the largest revenue line 1.

  • Competition from digital paymentsheadwind

    Digital payment platforms, mobile wallets and agentic commerce could reduce spending on the company's own cards, and the company warns these mechanisms could affect fee and interest revenue 1.

  • Interest rate and stablecoin regulationmixed

    Proposals to cap credit card interest rates and new rules on stablecoins could change the competitive structure and interest income 1.

  • Artificial intelligence in paymentsmixed

    Integrating artificial intelligence into commerce may open new product opportunities, but competitors that use it more effectively could gain an advantage 13.

Competitive position

The company competes with payment networks, issuers and acquirers, as well as traditional paper-based and electronic payment methods 1. The sources show that Visa and Mastercard are larger than the company by purchase volume in most countries, and some competitors have much greater scale and resources 1.

Competition is intensifying through mergers, partnerships and government initiatives, and companies that control access to digital wallets can demand fees or pricing concessions 1. The company notes it must keep differentiating its offer to sustain its premium advantage 1.

  • VisaV

    Payments network which, according to the source, is larger than the company by purchase volume in most countries.

  • MastercardMA

    Payments network of comparable scale whose dominant position can benefit issuers and acquirers operating on its network.

  • Digital wallet and payment platform providers

    Companies that control access to point-of-sale payments and can charge fees or require concessions for participation.

  • Point-of-sale installment and financing providers

    Companies offering alternative credit such as buy now, pay later products that could reduce the company's revolving balances.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / American Express Company · 06 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-09-30 · SEC / American Express Company · 23 Oct 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / American Express Company · 23 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.