American Express Raises Revenue Forecast Despite Stock Slide

American Express reported second-quarter profits of $3.11 billion, an 8% increase over the previous year, with earnings of $4.53 per share exceeding analyst expectations. The company raised its 2026 revenue growth forecast to 10%, citing strong discretionary spending from affluent customers, particularly millennials and Gen Z. Billed business grew 9% to $455.8 billion, while the company added 3 million new customers, 75% of whom opted for cards with annual fees.

Despite the earnings beat, shares fell between 4.5% and 6.4% because the company maintained its full-year profit guidance of $17.30 to $17.90 per share. Management stated this decision allows the company to reinvest overperformance into marketing, product refreshes, and artificial intelligence technology to compete with JPMorgan Chase, Citigroup, and Capital One. Quarterly expenses rose 12% to support these initiatives.

As part of its growth strategy, the company recently agreed to acquire the restaurant booking platform TheFork for $700 million. Executives indicated that these investments in value propositions and customer acquisition are intended to create long-term shareholder value rather than providing an immediate boost to the bottom line.