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American Express Q2 profit rises 8% to $4.53 a share, topping forecasts
The card issuer said stronger spending by affluent customers and younger cardholders drove revenue growth, while higher marketing and technology spending kept profit guidance unchanged.
- On Friday, American Express reported second-quarter profit of $4.53 per share, beating expectations of $4.40, though shares fell 4.5% as investors focused on an unchanged full-year profit forecast.
- American Express derives much of its business from affluent consumers, who remain better-positioned to weather inflationary pressures and maintain discretionary spending on travel and dining.
- Billed business rose 9% to $455.8 billion as revenue increased 10% to $19.6 billion, while consolidated expenses climbed 12% to $14.5 billion following the $700 million acquisition of TheFork.
- Chief Financial Officer Christophe Le Caillec said the company plans to reinvest its "overperformance" into marketing. "We see so many opportunities out there for us to invest," he said, explaining the unchanged profit forecast.
- Projections indicate 2026 revenue will grow 10%, aligning with Wall Street estimates compiled by LSEG. CEO Stephen Squeri emphasized that six months into the year, investments in value propositions have driven stronger momentum.
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The IndependentReposted by 
The Independent (US)
The Independent (US)American Express sees a boost in profits driven by new customers and higher spending
AmEx continues to benefit from global economic growth that has disproportionately benefited the wealthy and high net worth individuals
·London, United Kingdom
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American Express shares tumble despite robust earnings, higher revenue outlook as rising costs weigh on sentiment
Total card spending, or billed business, climbed 9% year over year to $455.8 billion on a foreign exchange-adjusted basis. Quarterly revenue also rose 10% to $19.6 billion, reflecting healthy consumer activity
·New Delhi, India
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Coverage Details
Total News Sources36
Leaning Left8Leaning Right3Center13Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 33%
C 54%
13%
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