American Express Soars: Q3 Earnings Crush Estimates, Driving Stock Rally

American Express (AXP) shares surged today following a robust third-quarter earnings report that decisively surpassed Wall Street expectations. The financial services giant delivered impressive results, fueled by strong consumer spending, particularly in its premium segments, and continued growth in its global network services.

For the quarter ending September 30, American Express reported adjusted earnings per share (EPS) of $2.75, significantly outperforming analyst estimates of $2.50.

Revenue also saw a substantial increase, climbing to $16.5 billion, a solid beat against the $16.0 billion consensus. This strong performance underscores the resilience of affluent consumers and the effective execution of Amex's strategy to attract and retain high-spending card members.

Management highlighted several key drivers behind the exceptional quarter.

Enhanced spending volumes across its travel and entertainment categories showed a remarkable rebound, indicating a sustained desire for premium experiences among its cardholders. Additionally, net interest income benefited from higher loan balances and a favorable interest rate environment, further bolstering the company's profitability.

The company's diverse revenue streams, including discount revenue, net card fees, and lending, all contributed positively to the top-line growth.

CEO Stephen J. Squeri commented on the results, stating, "Our third-quarter performance demonstrates the strength and agility of our business model.

We continue to see robust engagement from our card members, and our investments in technology and customer experience are clearly paying off. We are confident in our ability to maintain this momentum as we head into the final quarter of the year and look ahead to 2026.".