Breaking News | American Express Q2 Earnings Beat Buried by Expense Surge, Shares Fall 5%

American Express reported Q2 EPS of $4.53, beating the Street's $4.40, but revenue of $19.64 billion missed consensus by $50 million. The company raised full-year revenue guidance from 9–10% to 10%, yet held EPS guidance flat. Operating expenses rose 12% year-over-year-outpacing the 10% revenue growth-driven by elevated card member service costs from the Platinum Card refresh. Card member spending grew 9% on a currency-adjusted basis, the strongest pace in three years, with billed business reaching $455.8 billion. Provisions for credit losses dropped to $1.1 billion from $1.4 billion a year earlier, and the net write-off rate held steady at 2%. Net income rose to $3.1 billion, delivering a return on average equity of 36.4%.

Full-year EPS guidance unchanged despite revenue raise-watch whether Q3 shows expense discipline or continued reinvestment. Commercial card spending recovery (up 5% in Q2) is nascent; acceleration there would validate the spend-to-grow thesis. Credit quality remains a tail risk if macro conditions shift, though current metrics are stable.