American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company's products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

American Express looks like a high-quality business, but the market is already pricing in very strong expectations. The company’s profitability is outstanding: ROE of 33.55%, ROA of 3.69%, and ROI of 12.21% are noticeably above the industry medians, and ROE and ROA have remained consistently high throughout the five-year period. At the same time, profit margin and operating margin are below the industry median, which suggests that part of the efficiency advantage is already reflected in the high comparison base and in the business structure. Valuation multiples look expensive: P/E of 21.28, P/S of 2.87, P/FCF of 16.47, and especially P/B of 6.84 are significantly above the industry medians, so the potential for further multiple expansion is limited. The trend in valuation multiples overall does not show any clear cheapening: P/E and P/S have fluctuated but remain elevated, while P/B and P/FCF still require a premium to the sector. Leverage is an important limiting factor: debt/equity of 1.73 and long-term debt of $58.75 billion look high, and total liabilities continue to rise along with assets, increasing sensitivity to the credit cycle. Liquidity is mixed: the current ratio of 1.57 is acceptable, cash on hand of $53.76 billion is strong, but the quick ratio is 0.00, which for a financial company reflects the nature of the balance sheet and at the same time limits the margin of safety in a stress scenario. On earnings and revenue, the picture is positive: revenue, net income, and operating income are growing year over year, while TTM net income of $2.94 billion and EPS of 4.53 confirm stable income generation. The forward EPS of 4.41 is almost unchanged from the current TTM figure, so no acceleration in fundamental growth is visible yet. The dividend yield of 0.27% is very low and is not a strong argument for upward revaluation. Overall, the company has strong earnings quality and a high return on capital, but the valuation is already expensive, while leverage and moderate margins limit the upside. For an investor, this is more of a story about a high-quality but not cheap issuer, where a cautious approach to the target price is justified.

American Express Company

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Слабый индекс, незначительно вырос

AXP demonstrates strong profitability and earnings growth, but trades at a significant premium to the sector and carries a notable debt burden.

Key Points
American Express maintains a strong grip on the high-spending consumer segment through its premium card-issuing and global merchant network.
Berkshire Hathaway offers unmatched diversification across insurance, energy, and transportation with a massive cash pile for future acquisitions.
Which of these financial titans is the better addition to your portfolio for the year ahead?
Investors today face a choice between a focused premium lender and a vast, diversified conglomerate. Choosing between American Express (NYSE:AXP) and Berkshire Hathaway (NYSE:BRKA) requires weighing high-end consumer trends against broad industrial stability.
American Express focuses on providing credit cards and lifestyle services to a wealthy customer base, while Berkshire Hathaway operates as a massive holding company with interests spanning insurance and railroads. These businesses are often compared because they both represent pillars of the financial world, though their operational structures and risk profiles vary significantly.
The case for American Express
American Express operates as a global payments and premium lifestyle brand, primarily serving high-spending consumers and businesses. The company is a prominent player among financial stocks by integrating its own payment network with card-issuing capabilities. Key partners include Delta Air Lines, Marriott International, and Hilton, though the Delta relationship alone represents nearly 13% of billed business. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached nearly $80.5 billion, representing roughly 8.4% growth compared to the previous year. The company reported net income of approximately $10.8 billion, which resulted in a net margin of roughly 13.5%. This growth highlights the firm's ability to expand its card member base and increase spending volumes in a competitive market.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 1.7x, which represents total debt relative to shareholder equity. The current ratio is nearly 1.6x, a metric that measures the company's ability to cover its short-term obligations with short-term assets. Free cash flow, which is cash from operations minus capital expenditures, was approximately $16.0 billion for the year.
The case for Berkshire Hathaway
Berkshire Hathaway is a diversified holding company that operates a vast range of businesses in insurance, rail transportation, and energy. The conglomerate recently expanded its homebuilding footprint in July 2026 with the nearly eight point five billion dollar acquisition of Taylor Morrison. It also owns McLane, which serves large customers like Walmart and Yum! Brands, though Walmart alone accounts for over 17% of McLane's revenue.
In FY 2025, revenue was close to $371.4 billion, showing flat growth compared to the prior fiscal year. Despite the stagnant top line, the company reported net income of nearly $67.0 billion and a net margin of close to 18.0%. These figures reflect the diverse contributions from its many subsidiaries and its significant investment portfolio.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.2x, representing total debt relative to total shareholder equity. The current ratio is roughly 6.8x, indicating a very strong ability to cover short-term liabilities with short-term assets. Free cash flow was approximately $25.0 billion, which is calculated as operating cash flow minus capital expenditures, providing the company with immense capital for future investments.
Risk profile comparison
American Express faces intense competition from established networks like Visa and Mastercard, as well as payment facilitators like PayPal. The company also deals with high partner concentration, specifically its relationship with Delta Air Lines, which could hurt results if renegotiated. Additionally, the business is exposed to sophisticated cybersecurity threats and evolving global regulations regarding interchange fees.
Berkshire Hathaway accepts significant catastrophe risk through its insurance units, which can lead to unpredictable losses from large-scale claims. The company's heavy concentration in a small number of equity investments means that stock market volatility can significantly impact its total shareholder equity. Finally, there is a risk associated with the eventual transition of leadership to Gregory E. Abel and his management of future capital allocation.
Valuation comparison
American Express appears more affordably priced than Berkshire Hathaway, carrying a lower Forward P/E and P/S ratio than the conglomerate.
Metric
American Express
Berkshire Hathaway
Forward P/E
19.0x
24.5x
P/S ratio
3.04x
2.6x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with American Express. Berkshire Hathaway is one of the great businesses in the history of American capitalism, and its first quarter under new CEO Greg Abel showed operating earnings growth alongside a record cash pile, giving the company enormous flexibility. It is as steady as it gets.
But that steadiness is the point. Berkshire is built for preservation and patient compounding across dozens of businesses, not rapid growth. And with Warren Buffett stepping back from day-to-day decisions, investors are navigating a monumental transition, however orderly it appears.
American Express is a more focused bet right now. Premium card spending is accelerating, customer retention among high-income cardholders remains excellent, and the company just posted its strongest card spending growth in years. The brand's pricing power is a durable competitive advantage that few financial companies can match.
Both are excellent long-term holds. But Amex offers a sharper, more direct growth story for an investor who wants to know exactly what they own.
Should you buy stock in American Express right now?
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American Express is an advertising partner of Motley Fool Money. Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Mastercard, PayPal, Visa, and Walmart. The Motley Fool recommends Delta Air Lines, Marriott International, and Yum! Brands and recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American Express vs. Berkshire Hathaway: Which Financial Stock Is a Better Buy in 2026?

Visa Inc. V delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, up 11% year over year and beating the Zacks Consensus Estimate by 2.8%.
Net revenues came in at $11.63 billion, rising 14% year over year and topping the consensus mark by 2.3%.
The strong quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by increased operating expenses.
Visa Inc. Price, Consensus and EPS Surprise
Visa’s Q3 Highlights
On a constant-dollar basis, cross-border volume increased 13% year over year, reflecting steady travel and e-commerce activity. Excluding transactions within Europe, cross-border volume rose 12% in constant dollars.
Network throughput also improved. Total processed transactions were 71.7 billion for the June quarter, marking a 10% year-over-year increase.
Adjusted operating expenses were $3.88 billion, up 17% year over year. It came a bit higher than our estimate of $3.83 billion. Higher personnel costs of $2.46 billion and marketing expenses of $649 million were notable contributors, alongside general and administrative expenses of $503 million. The litigation provision totaled $253 million in the quarter, down sharply from $615 million a year ago.
V’s Segment Performance
Service revenues increased 14% year over year to $4.92 billion and beat our model estimate of $4.89 billion, supported by expanding payment volumes. Data processing revenues climbed 17% to $6.04 billion and surpassed our estimate of $5.94 billion, pointing to healthy growth in transactions processed across Visa’s network.
International transaction revenues rose 6% to $3.85 billion and beat our model estimate of $3.83 billion, while other revenues advanced 45% to $1.50 billion, topping our estimate of $1.21 billion. Offsetting a portion of these gains, client incentives, recorded as a contra-revenue item, increased 18% to $4.68 billion. It came in higher than our estimate of $4.51 billion.
Visa Returns Capital Aggressively
Visa continued to emphasize shareholder returns. During the quarter, the company repurchased $4.9 billion of Class A shares and paid $1.3 billion in dividends, totaling $6.2 billion returned to its shareholders. The company had leftover authorized funds of $28.4 billion under its repurchase program as of June 30, 2026.
Cash generation remained solid. Free cash flow was $6.1 billion in the quarter, after $417 million of capital expenditures. Visa ended June 30, 2026, with $13.9 billion in cash, cash equivalents and investment securities. Its long-term debt amounted to $20.9 billion, up from $19.6 billion at fiscal 2025-end. Current maturities of debt were at $3 billion.
V Outlines Strong Growth Targets Ahead
For the fourth quarter of fiscal 2026, Visa expects adjusted net revenue growth in the low-double-digit to low-teens range and operating expense growth in the high-end of low-double-digit while projecting adjusted earnings per share growth in the mid-teens range.
For fiscal 2026, the company now anticipates adjusted net revenue growth in the low-end of the mid-teens range and operating expense growth in the mid-teens range. Adjusted earnings per share are still expected to grow in the mid-teens.
V’s Zacks Rank
Visa currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Are Visa’s Peers Placed This Quarter?
Major rival Mastercard Incorporated MA is scheduled to report second-quarter 2026 results on July 30. The Zacks Consensus Estimate for adjusted earnings is pegged at $4.77 per share, indicating 14.9% year-over-year growth. The same for revenues is pegged at $9.1 billion, signaling an 11.4% increase. MA beat earnings estimates in each of the past four quarters with an average surprise of 5.5%.
American Express Company AXP reported second-quarter 2026 EPS of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. Total revenues, net of interest expense, improved 10% year over year to $19.6 billion. AXP’s quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.
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Visa Q3 Earnings Beat Estimates on Cross-Border Volume Strength

Key Points
American Express pays significantly more in card member rewards expenses than it collects in membership fees.
American Express makes up for the shortfall through merchant fees.
Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) has held American Express (NYSE: AXP) for nearly 40 years, making it a staple holding under former CEO Warren Buffett. I predict Berkshire will continue to hold American Express under Warren Buffett's hand-picked successor, Greg Abel, because the company is attracting new cardholders from younger generations through its highly appealing rewards program.
Here's why the value stock is a great buy now.
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American Express is winning with millennials and Gen Zers
In the second quarter of 2026, as American Express reported on July 24, Gen Xers accounted for 36% of spending volumes among individual consumers, followed by 31% from millennials, 27% from baby boomers and older, and 7% from Gen Zers.
However, Gen Zers showed 40% year-over-year spending growth, followed by 14% from millennials, 10% from Gen Xers, and 5% from baby boomers. Although Gen Xers and baby boomers account for the majority of consumer spending, the fastest-growing cohorts are younger generations.
American Express's secret sauce
Cross-generational engagement is the holy grail of consumer brands. It's how fellow Berkshire core holding Coca-Cola became a beverage enjoyed across age groups and geographies, and how Apple built an ecosystem that incentivizes families to adopt the next generation of Apple products.
To achieve cross-generational adoption, a brand has to offer something above and beyond the competition. And for American Express, that's a rewards program unlike any other. For the six months ended June 30, American Express raked in $5.61 billion in net card fees but spent a staggering $9.94 billion on card member rewards.
So even though its annual Gold Card membership now costs $325 and the Platinum Card costs $895, members are still getting a good deal based on the value of their rewards.
The beauty of American Express's business is that it can afford these ultra-generous card member perks because its main revenue stream is what's known as discount revenue, which is the fees it collects from merchants each time an American Express card is swiped, inserted, tapped, or entered digitally. For the six months ended June 30, American Express generated $19.68 billion in discount revenue.
Anchor your portfolio with a high-quality stock
American Express has built an ecosystem that can endure for generations to come. It starts with a network of 155.1 million cards in force, which creates network effects that incentivize merchants to accept American Express even though the cards tend to have higher fees than Visa and Mastercard.
In turn, American Express generates substantial discount revenue, which it can use to offer generous perks to card members that cost nearly twice what members pay in annual fees. Because members are getting such a good deal, they are incentivized to rack up as many reward points as possible, which boosts discount revenue from merchant fees -- and the cycle repeats.
American Express is attracting new card members and guiding for double-digit revenue growth and record earnings in 2026, even though consumer spending has been under pressure. The results and forecast show that the business can thrive regardless of the economic cycle.
Add it all up, and American Express stands out as arguably the single best Berkshire Hathaway stock to buy now.
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American Express is an advertising partner of Motley Fool Money. Daniel Foelber has positions in American Express. The Motley Fool has positions in and recommends American Express, Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: Under Greg Abel, Berkshire Hathaway Will Hold This Warren Buffett Stock for Decades for This Remarkably Simple Reason

The Western Union Company WU is set to report its second-quarter 2026 results on July 30, 2026, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 43 cents per share on revenues of $1.01 billion.
The second-quarter earnings estimate remained stable over the past 60 days. The bottom-line projection indicates a year-over-year jump of 2.4%. However, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decrease of 1.8%.
For 2026, the Zacks Consensus Estimate for Western Union’s revenues is pegged at $4.18 billion, implying a rise of 3.2% year over year. The consensus mark for 2026 EPS is pegged at $1.74, implying a year-over-year decrease of 0.6%.
Western Union beat the consensus estimate in two of the last four quarters and missed twice, with the average surprise being negative 7%. This is depicted in the figure below.
The Western Union Company Price and EPS Surprise
Q2 Earnings Whispers for Western Union
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
WU has an Earnings ESP of -6.50% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping WU’s Q2 Results?
The Zacks Consensus Estimate and our model estimate for Consumer Money Transfer revenues indicate 3.7% and 4.6% year-over-year decreases, respectively. The consensus mark for C2C transactions indicates a 1.2% year-over-year increase, while we expect a 1% rise.
Geographically, revenues are expected to decline year over year in North America, the Middle East, Africa, South Asia and Asia Pacific. This is likely to have led to lower revenues. Furthermore, the consensus mark for operating income from the Consumer Money Transfer segment signals a 13.2% year-over-year decline, whereas our model predicts a 12.4% fall.
However, the Zacks Consensus Estimate for Consumer Services revenues indicates 9.7% year-over-year growth, while our model estimate predicts a 10.3% increase. The consensus mark for operating income from the segment predicts a 29.2% year-over-year surge, while our model indicates a 29.7% jump.
Moreover, our model estimate for total operating expenses indicates a 1.1% year-over-year decrease due to lower cost of services and SG&A costs. These are likely to have led to bottom-line growth.
How Are Peers Doing This Quarter?
Companies in the broader Finance space, like Synchrony Financial SYF and American Express Company AXP, have already reported their results for the June quarter, and Mastercard Incorporated MA is yet to report.
Synchrony Financial reported second-quarter 2026 adjusted EPS of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%, and the bottom line increased 3.6% year over year. The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, SYF’s higher operating expenses and an increase in the provision for credit losses partly offset these positives.
American Express reported second-quarter 2026 EPS of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by AXP’s elevated operating expenses.
Mastercard is set to report second-quarter 2026 results on July 30, 2026. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.77 per shareon revenues of $9.06 billion. The bottom-line projection indicates an increase of 14.9% from the year-ago reported number, while the same for revenues suggests year-over-year growth of 11.4%.
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Can Consumer Services Cushion Western Union's Q2 Revenue Drop?

Payments giant Mastercard Incorporated MA is set to report second-quarter 2026 results on July 30, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.77 per share on revenues of $9.06 billion.
The second-quarter earnings estimate witnessed three upward revisions and one downward movement over the past 60 days. The bottom-line projection indicates an increase of 14.9% from the year-ago reported number. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 11.4%.
For full-year 2026, the Zacks Consensus Estimate for Mastercard’s revenues is pegged at $37 billion, implying a rise of 12.8% year over year. Also, the consensus mark for 2026 earnings per share is pegged at $19.63, implying a jump of 15.4% on a year-over-year basis.
Mastercardhas a robust history of surpassing earnings estimates, beating the consensus estimate in each of the last four quarters, with the average surprise being 5.5%. This is depicted in the figure below.
Mastercard Incorporated Price and EPS Surprise
Q2 Earnings Whispers for Mastercard
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
MA has an Earnings ESP of +0.39% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping Mastercard’s Q2 Results?
The Zacks Consensus Estimate for the company’s total Gross Dollar Volume (GDV) for all MA-branded programs suggests a 9.4% rise from the prior-year quarter’s reported figure. GDV from domestic operations is expected to increase 4.9% year over year and 14.7% from European operations.
Switched transactions are expected to have experienced an upsurge, driven by resilient consumer spending and increased contactless acceptance initiatives pursued by the company. The Zacks Consensus Estimate for its switched transactions indicates a 9% rise from the prior-year quarter’s reported figure. Other companies like Visa Inc. V and American Express Company AXP also have benefited from resilient spending in the June quarter.
Increasing cross-border travel is expected to have had a positive impact on Mastercard's cross-border volumes. As such, the consensus estimate for cross-border assessments suggests an increase of 12.1% compared with the previous year. Further, the consensus mark implies domestic assessments and transaction processing assessments to witness a 9.3% and 11.6% year-over-year increase, respectively.
The Zacks Consensus Estimate for Value-added Services and Solutions net revenues indicates 18.3% year-over-year growth, while our model estimate suggests a 19.4% increase in the second quarter. Growing demand for its consulting and marketing services and loyalty solutions is likely to have driven this metric.
The above-mentioned factors are expected to have positioned the company not only for year-over-year growth but also for a likely earnings beat. The positives are expected to have been partially offset by rising expenses, rebates and incentives.
Mastercard’s adjusted operating costs are likely to have increased in the second quarter due to higher G&A costs and Advertising & Marketing expenses. We expect total adjusted operating expenses to rise more than 11% from the prior-year quarter’s actuals. Furthermore, our estimate for payments network rebates and incentives suggests a nearly 15% year-over-year increase.
Mastercard’s Price Performance & Valuation
Over the year-to-date period, Mastercard has declined 3.4%, while Visa has gained 3.4%, and American Express has slipped 9.3%. All of these stocks underperformed theS&P 500 Index’s 7.6% growth. The industry hasdeclined 9.3% during this time.
YTD Price Performance – MA, V, AXP, Industry & S&P 500
Image Source: Zacks Investment Research
Now, let’s look at the value Mastercardoffers investors at current levels.
The company’s valuation looks stretched compared with the industry average, despite the declines. Currently, Mastercardis trading at 25.81X forward 12-month earnings, above the industry’s 18.64X. In comparison, both Visa and American Express offer better value at the moment, trading at a forward P/E of 24.88X and 17.53X.
Image Source: Zacks Investment Research
How Should You Play Mastercard Ahead of Q2 Earnings?
Mastercard enters its second-quarter report with several positives working in its favor. Consumer spending has remained resilient, cross-border travel continues to support high-margin payment volumes, and the company's value-added services business is expanding at a healthy pace. The positive Earnings ESP and a Zacks Rank #3 also point to the possibility of another earnings beat, consistent with its strong track record over the past four quarters.
That said, much of the company's long-term strength is already reflected in its valuation. Mastercard trades at a premium to both its industry and key peers, leaving less room for disappointment if management's outlook falls short of expectations. Investors should also keep an eye on regulatory developments and the evolving competitive landscape, even though neither appears likely to alter the company's long-term trajectory in the near future.
Overall, Mastercard remains one of the highest-quality businesses in the payments industry, backed by durable secular growth drivers and ongoing investments in AI, stablecoins and value-added services. As such, existing investors have reasons to stay invested, while new investors may find it prudent to wait for the earnings release or a more attractive entry point before building a position.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Mastercard Nears Q2 Earnings With Beat Potential, but Should You Buy?

Key Points
American Express raised full-year revenue guidance, but investors weren’t impressed.
The company’s strong brand is resonating extremely well with younger consumers.
At a price-to-earnings ratio of just under 20, shares appear fairly valued.
The overall market is up this year, but American Express (NYSE: AXP) has been a big loser. Its shares have fallen almost 12% (as of July 24). This is despite the company continuing to operate at a high level.
This financial stock currently trades at around $326. Is it still worth buying today? Investors should first understand the quality of this business before looking at valuation.
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The positive long-term trend masks mixed second-quarter results
During the three-month period ended June 30 (the company's second quarter), American Express reported a 10% year-over-year revenue increase to $19.6 billion. This missed Wall Street expectations.
Diluted earnings per share (EPS) totaled $4.53, up 11% compared to Q2 2025. The bottom-line figure beat analyst estimates.
Management raised revenue guidance to a 10% year-over-year gain for the full year. The EPS forecast was kept unchanged. This might have disappointed investors, as the stock immediately fell 7%.
Despite the market's immediate reaction to the company's latest financial update, investors have every reason to remain bullish. The positive long-term trend holds, as American Express continues to post solid revenue and profit gains. There's no reason to believe this will let up.
Member spending grew by 9% in Q2, which was the fastest pace in more than three years on a currency-neutral basis. This is particularly encouraging in today's uncertain macro environment. And it highlights American Express's strong position among affluent customers.
The company is attracting millennials and Gen Zers to its most popular products. Getting these people into the American Express ecosystem early in their professional lives means the business can capture tremendous lifetime value.
Turning to the industry, competition is fierce. However, American Express has the premium brand recognition, something that has stood the test of time, to win new members against similar offerings from other well-known credit card issuers. Consumers appreciate the top-notch perks and rewards they receive.
Looking out at the next decade and beyond, the business should be able to register solid growth. That's because the payments landscape has been undergoing a secular shift away from cash and toward cashless transactions. In addition to higher spending across the economy, American Express will benefit from this trend.
American Express isn't a bargain opportunity
With shares trading 15% off their peak, investors are getting a better deal right now. American Express's price-to-earnings (P/E) ratio is 19.8. It's gotten 21% cheaper since the start of 2026.
But American Express is not a bargain opportunity. If it got down to a P/E of 15, it would be a no-brainer buy. If anything, the stock is fairly valued. Given that this is such a high-quality business, though, investors might still want to consider allocating some of their capital to American Express.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
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*Stock Advisor returns as of July 28, 2026.
American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is American Express Still Worth Buying at Today's Price?

Key Points
Card member rewards spending is elevated following the launch of the revamped Platinum Card in September 2025.
American Express continues to grow revenue and earnings at a breakneck pace.
American Express is returning boatloads of cash to shareholders through dividends and buybacks.
On Jan. 1, Greg Abel succeeded Warren Buffett as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), taking over a portfolio of publicly traded equities worth hundreds of billions of dollars, as well as other controlled companies worth even more -- such as Berkshire's insurance businesses, railroads, Berkshire Hathaway Energy, manufacturing, service, retail businesses, and more.
Abel wasted no time making some massive portfolio moves, including selling several small positions and pole-vaulting Alphabet (on Buffett's recommendation) to one of Berkshire's top five holdings. Amid the portfolio changes, Abel added steadfast conviction to Berkshire's largest holdings, saying that Berkshire's concentration in American Express (NYSE: AXP), Apple, Coca-Cola, and Moody's will continue, as Berkshire expects these companies to compound over decades.
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But it has been a rough year for American Express investors. The stock fell 4.3% on July 24 in response to its second-quarter 2026 earnings report, putting American Express down 11.8% year to date.
Here's why American Express is a no-brainer value stock to buy now despite its post-earnings sell-off.
On pace for a banner year
American Express barely missed on revenue expectations and noted an uptick in expenses related to its revamped U.S. Platinum Card perks. The sell-off seems overblown, given that the payment processor and card issuer raised its guidance and now expects a 10% increase in 2026 revenue.
The upbeat growth stems from strong customer additions and increasing customer spending. On a foreign-exchange-adjusted basis, which accounts for currency fluctuations, American Express reported 9% card member spending growth in Q2, which is the highest rate in three years. American Express is guiding for full-year earnings per share of $17.30 to $17.90, which would be an all-time high.
American Express's loyal customer base and steadily rising earnings enable it to consistently increase dividends and repurchase stock at a breakneck pace, accelerating earnings-per-share growth. As of the six months ended June 30, American Express has 682 million shares outstanding, down 3% from a year prior. And over the past decade, American Express has reduced its share count by more than 25%, it's roughly tripled its dividend, and the stock price has more than quintupled. Yet American Express remains an incredible value because earnings growth and buybacks have kept the valuation in check. American Express trades at just 18.5 times the midpoint of its 2026 earnings estimate.
A winning formula
American Express continues to deliver double-digit revenue and earnings growth even amid strained consumer spending. That growth is a testament to the strength of its business model.
American Express caters to an affluent customer base with a reward system built around discretionary spending and perks. Because of high spending on wants rather than needs, the customer base may be less sensitive to inflationary pressures, such as higher gas, food, and shelter costs.
Its members win because their perk value nearly doubles their membership costs on average. American Express collected just $5.61 billion in net card fees in the six months ended June 30, compared with $9.94 billion in card member rewards expenses.
If card fees were the only source of American Express's income, the company wouldn't last long. But like its card members, American Express also wins because customers have an incentive to prioritize spending with their American Express cards to justify the high annual fees and maximum membership rewards. The amount of fees that American Express collected from merchants alone in the six months ended June 30 was roughly double card member reward expenses.
And the merchants win because, although they pay American Express high fees, they still generate sales they might not have made if they hadn't accepted American Express.
American Express shareholders have historically won too because the company generates steady earnings growth that has justified a higher stock price, as well as rising cash flows that allow it to return capital to shareholders through a growing dividend and buybacks.
Add it all up, and American Express is as close to a perfect business model as you'll find.
A top-tier stock to buy now
American Express checks all the boxes of a textbook Warren Buffett stock. It has an established business model and brand, a wide moat from the network effects of its loyal customer base, and a clear path to growing earnings for decades to come. So it's no surprise that Abel called it out as a core Berkshire holding he expects to compound well into the future.
Add it all up, and American Express stands out as one of the best dividend growth stocks for investors to buy now, and one worthy of building an everlasting portfolio around.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
American Express is an advertising partner of Motley Fool Money. Daniel Foelber has positions in American Express. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, Berkshire Hathaway, and Moody's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Dividend Growth Stock That Warren Buffett Held for Decades, and Greg Abel Pegged as One of Berkshire Hathaway's Multidecade Compounders

A study of analyst recommendations at the major brokerages shows that American Express Co. (Symbol: AXP) is the #15 broker pick, on average, out of the 30 stocks making up the Dow Jones Industrial Average, according to ETF Channel. Within the broader S&P 500, when components were ranked in terms of analyst favorites, AXP claims the #173 spot.
Below is a chart of rank over time:
AXP operates in the Credit Services & Lending sector, among companies like Capital One Financial Corp (COF) which is up about 1.8% today, and Orix Corp (IX) trading higher by about 0.1%. Below is a three month price history chart comparing the stock performance of AXP, versus COF and IX.
AXP is currently trading up about 2.4% midday Monday.
Further AXP Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Broker Darlings of the Dow: American Express Ranks As a Top 15 Analyst Pick

Key Points
Spending on marketing to attract and retain members rose 12% in the quarter.
Management expects expenses to be 10% higher in the second half of the year.
Shares of American Express (NYSE: AXP) plummeted more than 6% in last Friday's morning trading. What's going on? Well, the iconic charge card company issued its second-quarter results, and while revenue and earnings growth were strong, rising expenses worried investors.
Amex reported revenue net of interest expense of $19.6 billion, 10% higher than the same period a year ago. That was driven by higher card member marketing expenses -- up about 9% -- during the quarter. Earnings per share rose 11%, to $4.53, about $0.12 higher than analysts expected.
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But there was one thing the market really didn't like. The company said expenses grew 12% year over year in the quarter to $14.5 billion, from $12.9 billion a year ago. That higher level will continue through the end of 2026, CFO Christophe Le Caillec said on a call with analysts.
He expects marketing expenses to be 10% higher in the second half of the year. The company has been increasing its marketing spending on several card products to attract and retain members.
Amex has had success with younger consumers, including millennials and Gen Z, who are its fastest-growing group. That's a real positive. Yet, the higher marketing expenses -- both in the second quarter and for the remainder of the year -- could indicate that those new memberships are increasingly expensive for the company to obtain.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 27, 2026.
American Express is an advertising partner of Motley Fool Money. Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Shares of American Express Are Plummeting

American Express Company AXP used its second-quarter 2026earnings callto emphasize stronger spending momentum, resilient credit quality and accelerating fee revenues. Management raised its full-year revenue growth outlook to 10% but kept earnings guidance unchanged.
The decision reflects a deliberate choice to reinvest operating upside in customer acquisition, technology and strategic capabilities rather than maximize near-term earnings. That trade-off became the defining issue of the call.
AXP Directs Revenue Upside Back Into Growth
Chairman and CEO Stephen Squeri said the company delivered 10% revenue growth. The company reported earnings of $4.53 per share, up 11% year over year. Reported earnings exceeded the Zacks Consensus Estimate of $4.41. Revenues of $19.64 billion surpassed the Zacks Consensus Estimate by 0.01%.
American Express Company Price, Consensus and EPS Surprise
Squeri said stronger-than-expected first-half performance supported the increase in revenue guidance. However, management maintained its full-year earnings outlook of $17.30 to $17.90 per share.
Rather than allowing the additional revenues to flow directly to earnings or share repurchases, American Express plans to increase spending on customer acquisition, technology development and other growth opportunities.
American Express Sees Platinum-Led Momentum
Squeri identified the refreshed U.S. Platinum products as a major contributor to stronger engagement and spending. The Platinum portfolio became the fastest-growing product group within the U.S. consumer business.
Chief financial officer Christophe Le Caillec said U.S. consumer spending increased 11%, its strongest growth rate since the first quarter of 2018 when pandemic-distorted periods are excluded. He attributed the acceleration to new customers, upgrades and higher spending by existing Platinum members.
Management also highlighted continued success with younger consumers. Millennials and Gen Z accounted for 65% of new U.S. consumer accounts, reinforcing the company’s focus on customers with longer potential relationships.
AXP Expects Card Fee Growth to Accelerate
Le Caillec said net card fees increased 15.4% and remained the company’s fastest-growing revenue line. Card fees have now posted double-digit growth for 32 consecutive quarters.
Management expects fee growth to accelerate during the third quarter and exit 2026 in the high teens. The increase will reflect the gradual recognition of higher Platinum annual fees, which are amortized over 12 months.
The company also acquired three million new cards during the quarter, with 75% of new accounts coming from fee-paying products. Management described that mix as the highest since American Express intensified its premium-product strategy.
American Express Maintains Strong Credit Trends
Le Caillec said credit performance remained better than management had expected entering the year. Delinquency rates have stayed between 1.2% and 1.3% for more than three years, while write-off and delinquency measures remained below 2019 levels.
Provision expense totaled $1.1 billion and included a $191 million reserve release, primarily reflecting improved portfolio performance. The second-quarter net write-off rate was 2.0%, unchanged from the prior-year period.
Management expects credit metrics to remain generally stable through the remainder of 2026. The premium customer mix remains central to its view that credit losses can stay comparatively contained.
AXP Addresses Portfolio Sale Headwinds
Le Caillec said the staggered transfers of two small-business co-brand portfolios will create visible revenue pressure as the year progresses. By the fourth quarter, the sales are expected to reduce spending growth by roughly 1 percentage point and net interest income growth by about 2.5 percentage points.
The combined impact on total revenue growth should be approximately 1 percentage point. Management stressed that the effect on pretax income should be negligible and was already reflected in its original outlook.
During the Q&A, Le Caillec added that underlying spending momentum should continue, although the portfolio transfers will make reported growth appear slower.
American Express Expands Technology and AI Spending
Squeri said American Express is accelerating technology projects that had previously been scheduled for later periods. Investments also include customer acquisition, the proposed purchase of TheFork and capabilities related to agentic commerce.
The company is already using artificial intelligence to shorten coding cycles by 30% to 40%. Management is redeploying that productivity toward completing more projects rather than treating it as immediate cost savings.
AI tools are also supporting customer service and travel representatives. Squeri said staffing has remained broadly stable despite business growth, with longer-term efficiency expected through normal employee attrition.
AXP Keeps Its Focus on Durable Growth
Management’s tone remained confident about spending, retention and credit quality. At the same time, executives were explicit that sustaining double-digit revenue growth requires continued investment.
The company’s priorities remain premium product development, younger-customer acquisition, international expansion, digital capabilities and partnerships that deepen card-member engagement.
What the Zacks Signals Indicate
AXP currently carries a Zacks Rank #3 (Hold). Its Value Score is C, Growth Score is F, Momentum Score is A and VGM Score is C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The strong Momentum Score indicates favorable price-trend characteristics, while the weaker Growth Score and midrange Value and VGM readings present a mixed style profile. Zacks Style Scores are designed to complement the Zacks Rank, with the strongest combinations generally involving a Zacks Rank #1 or 2 (Buy) and Style Scores of A or B. The Zacks Rank can change as analyst earnings estimates are revised following the reported results.
Research Chief Names "Single Best Pick to Double"
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.