American Express reported second-quarter 2026 net income of $3.11 billion, up from $2.89 billion a year earlier, as total revenues net of interest expense rose 10% to $19.64 billion. Diluted earnings per share increased to $4.53 from $4.08.
For the first half of 2026, net income reached $6.08 billion, up 11% from $5.47 billion, while diluted EPS climbed to $8.81 from $7.71. Revenue net of interest expense for the six months rose 11% to $38.54 billion.
Card spending remained a key driver. Billed business increased 9% in the quarter to $455.8 billion and 10% in the first half to $883.8 billion. Network volumes rose 9% to $516.8 billion in the quarter and 10% to $1.003 trillion for the half-year.
Card balances and other loans increased to $229.5 billion at June 30, 2026, up 8% from $212.0 billion a year earlier. Average card balances and other loans were $227.8 billion in the quarter, also up 8%.
Revenue growth came from several lines: Discount revenue rose 9% in the quarter to $10.16 billion and 9% in the half to $19.68 billion. Net card fees climbed 15% in the quarter to $2.86 billion and 17% in the half to $5.61 billion. Net interest income increased 11% in the quarter, helped by higher balances and net yield expansion. Service fees and other revenue rose 7% in the quarter.
Credit costs improved. Provisions for credit losses fell to $1.08 billion from $1.41 billion in the quarter, a decline of 23%. For the first half, provisions dropped 9% to $2.34 billion from $2.56 billion. The company said the quarterly decline reflected a reserve release versus a reserve build a year earlier.
Credit metrics stayed steady. The net write-off rate on principal, interest and fees was 2.2% in the quarter and 2.3% for the half. The principal-only write-off rate for consumer and small business cards was 2.0% in both periods. The 30-plus-days-past-due rate for consumer and small business cards was 1.2% in the quarter, down from 1.3% a year earlier.
Expenses rose faster than revenue. Total expenses were $14.48 billion in the quarter, up 12%, and $28.36 billion for the half, also up 12%. Card Member rewards, services and business development expenses increased with spending, while marketing expense rose 6%.
Pretax income increased 15% in the quarter to $4.07 billion and 14% in the half to $7.85 billion. The effective tax rate was 23.6% in the quarter, up from 18.7% a year earlier, and 22.5% for the half versus 20.5%.
American Express ended the quarter with $45.24 billion in cash and cash equivalents, down from $57.94 billion a year earlier. Customer deposits rose to $156.97 billion from $149.39 billion. Long-term debt was $57.02 billion, down from $58.20 billion.
The company’s return on average equity was 36.4% in the quarter and 35.9% for the first half. Its Common Equity Tier 1 ratio was 10.4% at June 30, 2026, down from 10.6% a year earlier.
American Express declared cash dividends of $0.95 per share in the quarter, up from $0.82, and $1.90 per share for the first half, up from $1.64. Average diluted shares outstanding fell to 679 million from 699 million in the quarter. Today the company's shares have moved -4.33% to a price of $326.065. For the full picture, make sure to review AMERICAN EXPRESS CO's 10-Q report.
