American Express (NYSE: $XAP) is a leading financial services firm, mainly known for its credit cards and payment network. It serves consumers and businesses of all sizes. On Friday, January 30, 2026, the company released its Q4 and full-year fiscal 2025 results. Let us dive deep into those results.
American Express Q4 Results
For the fourth quarter, the company reported a 10% YoY increase in revenue to $18.98 billion, beating estimates of $18.82 billion. The company reported a net income of $2.46 billion for an EPS of $3.53, in line with estimates.
It reported consolidated provisions for credit losses of $1.4 billion, compared to $1.3 billion last year. Its net write-off rate for Q4 was 2.1%, compared to 1.9% last year. The company reported $14.5 billion in consolidated expenses for Q4, a 10% YoY increase.
For the full year, Amex reported revenue of $72.23 billion, a 10% YoY increase. Its FY net income rose 7% YoY to $10.83 billion, while the diluted EPS rose 10% YoY to $15.38.
Dividend Increase And FY 2026 Forecast
Commenting on the results, Amex CEO said they plan to increase the quarterly dividend by around 16% from $0.82 to $0.95, starting with Q1 fiscal 2026. He added that the company expects FY 2026 revenue to grow 9%-10%. EPS is forecast to be around $17.30 to $17.90, above the forecast of $17.40 at the midpoint.
Trump Credit Card Threat
Recently, President Trump proposed imposing a 10% rate cap on credit cards. Soon after, Amex shares dipped 7%. Analysts have warned it could restrict credit access. However, credit card issuers could also offset the loss on interest income by cutting rewards and increasing fees.
Market Performance
After reporting in-line results, AXP shares dipped 1.69% a few minutes after the opening bell to $352.14. The stock’s price has dipped 3.10% year to date and 4.48% in the past month. Over the past six months, the price has risen by 16.19%, and over the past 52 weeks, by 13.72%.
Analysts remain confident about the future of $AXP shares, giving them a moderate buy rating. They forecast a wide range of prices, with a high of $425 and a low of $280. Their average forecast of $381.39 is a 6.38% upside from the last closing price.
Is Amex A Buy In 2026?
Amex has previously stated that its customer base, which mainly comprises high-income earners, has continued to spend and pay bills amid a broader drop in consumer confidence. Its target market is mainly high-earning consumers who are willing to pay a premium fee for a card that gives them perks and benefits.
A major benefit that it has over its peers is that it is both a card issuer and a payment network, which allows it to generate revenue from diverse sources. Additionally, it has continued to experience consistent growth in revenue and earnings over the years. Coupled with the recent double-digit percentage increase in dividends, adding $AXP to your portfolio could potentially be a great play as part of a portfolio with a long-term horizon.
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