American Express (NYSE:AXP) Chief Financial Officer Christophe Le Caillec said the company’s operating trends remained strong through the first half of 2026, supported by growth in cardmember spending, card fees and net interest income.
Le Caillec said foreign-exchange-adjusted revenue increased 10% in the first half, while earnings per share rose in the mid-teens. Billings growth has stayed in the 8% to 9% range over the past several quarters and was somewhat stronger in the second quarter, he said. Card fees rose 16% year to date, while net interest income grew at a double-digit rate.
Investment Priorities and Long-Term Targets
Le Caillec said American Express is directing better-than-anticipated business performance toward investments in customer acquisition and technology rather than allowing all of the upside to flow to earnings or share repurchases.
Marketing investment is focused on acquiring new cardmembers, while technology spending supports product development and new capabilities. He cited the recent release of a Business Savings account and the company’s work on expense-management solutions for mid-sized customers as examples.
American Express measures returns on marketing spending and reallocates funds toward channels and products generating stronger results, Le Caillec said. He pointed to the company’s return on equity, which he said has increased from roughly 25% to 28% a decade ago to above 30% in recent years, as a broader measure of the effectiveness of its investments.
The company continues to view 10% revenue growth and mid-teens earnings-per-share growth as long-term aspirations rather than forecasts or formal guidance. Le Caillec said revenue growth is the central driver of the earnings target, alongside the company’s historical pace of buying back about 3% of its share count annually, subject to share price.
Travel Spending and International Growth
American Express recorded approximately 8% billings growth quarter to date in July and August, according to Le Caillec. Travel and entertainment spending, particularly airline spending, was a notable contributor. He said high cardmember paydown rates also signal confidence in customers’ financial positions and support the company’s credit outlook.
International operations represented about 26% of billed business and have continued to grow faster than other segments. Le Caillec said international billings have increased by approximately 50% over the last three years, reflecting growth of roughly 12% annually.
The company uses a similar premium product lineup internationally, including Gold, Platinum and Centurion cards, while tailoring partnerships and benefits to local markets. Examples include co-brand relationships with British Airways in the U.K., Air France in France and KLM in the Netherlands.
Despite the growth, American Express estimates it holds only about a 6% share across its five leading international markets, leaving what Le Caillec described as substantial room for expansion.
Commercial Products and Membership Benefits
In commercial payments, Le Caillec said the recently introduced Graphite Business Cash Unlimited Card has performed better than expected. The company is also piloting expense-management capabilities from Center, the software company it acquired more than a year ago.
American Express has integrated Center with its core platforms but is not yet broadly scaling the offering. Le Caillec said the company does not expect a turnaround in commercial billings growth during 2026, describing the effort as a longer-term initiative built around no-preset-spending-limit cards, service and expense-management tools.
The CFO also emphasized American Express’s membership model and its efforts to differentiate premium cards through travel, dining, entertainment and banking benefits rather than competing principally on rewards points. He said the company has 33 proprietary airport lounges, in addition to its Delta partnership, and 3,400 hotels in its Fine Hotels + Resorts program.
American Express raised its 2026 outlook for variable customer engagement expenses, or VCE, to 44% to 45% of revenue from about 44%. Le Caillec said the increase partly reflects the rollout timing of refreshed card benefits, which become available before higher card fees take effect at renewal, as well as stronger spending that increases points-related costs.
Credit Trends and Younger Cardmembers
Le Caillec said credit metrics have remained stable and within expectations. Millennials and Gen Z customers account for 65% of new accounts, while Gen Z alone represents about 30% of global consumer new-account acquisitions.
He said American Express’s combined Millennial and Gen Z customer base has a delinquency rate 40% below that of the industry’s combined Gen X and baby boomer cohorts. The company does not reserve differently based on a cardmember’s age, he said, instead considering spending behavior and delinquency trends in its expected-credit-loss calculations.
Looking ahead, Le Caillec said the company expects to continue pursuing premium customers, younger cardmembers and international growth, supported by product innovation, dividend increases and share repurchases.
About American Express (NYSE:AXP)
American Express Company is a global payments and financial services company that provides payment products, services and experiences to consumers, businesses and institutions. Its offerings include credit and charge cards, consumer and commercial payment solutions, business financing, deposit products and expense-management tools.
The company also operates a global payments network connecting cardmembers, merchants and financial institutions. Through its merchant services business, American Express supports payment acceptance and provides data-driven marketing and customer-engagement solutions.
