American Express Raised Its Revenue Guidance and Left Its Earnings Guidance Alone. Here's Where the Extra Money Is Going.
The disparity seems alarming, but there's a perfectly good reason for what won't become a long-term norm. In fact, there's a net upside for patient shareholders.
Overview
All in all, last quarter was another good one for credit card outfit American Express (NYSE: AXP). Total revenue grew 10% year over year to $19.6 billion, pushing per-share income up from $4.08 a year earlier to $4.53 for the three months ending in June. The company even raised its 2026 revenue guidance to 10% above last year's top line of just over $72.2 billion, up from the predicted range of 9% to 10% given with this year's first-quarter results.
Curiously, however, American Express didn't raise its full-year earnings expectations in step with its upward-revised revenue guidance. It still anticipates reporting per-share earnings of only $17.30 to $17.90 for 2026. What gives?
Details
The company actually dropped a small hint during its second-quarter earnings conference call.
Source
Originally published at www.fool.com.