2Q26 Earnings: Reinvesting Upside

Research evidence excerpt

2Q26 Earnings: Reinvesting Upside

Update

July 27, 2026 01:28 AM GMT

Morgan Stanley & Co. LLCMAmerican Express Company | North America Jeffrey Adelson, CFA

Equity Analyst

2Q26 Earnings: Reinvesting Jeff.Adelson@morganstanley.comJoseph Leeman +1 212 761-1761

Research Associate

Joseph.Leeman@morganstanley.com +1 212 761-4381

Upside

American Express Company (AXP.N, AXP UN)

What’s Changed Consumer Finance | United States of America

American Express Company (AXP.N) From To Stock Rating Equal-weight

Price Target $385.00 $382.00 Industry View In-Line

Price target $382.00

Shr price, close (Jul 24, 2026) $326.17

Mkt cap, curr (mm) $220,548

AlphaSignals Earnings Reaction 52-Week Range $387.36-288.51

Unchanged Modest shortfall Modest revision lower

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

AXP raised FY26 revenue guide to +10% as expected, held EPS

guidance as it reinvests 2H upside into customer acquisition &

technology. Spending remains resilient despite macro/

geopolitical uncertainty (as of 2Q), while Commercial is starting

to accelerate. We trim 26/27e EPS <1% on higher expenses.

• 1H revenue momentum funding incremental growth investments. AXP

raised its FY26 revenue growth outlook to 10%, from the prior 9%-10%

range, though this was already expected in our model and from buyside,

based on our conversations. At the same time, management maintained

2026 EPS guidance of $17.30-$17.90, noting that it plans to reinvest 1H

upside (running ahead of its original expectations) into customer acquisition,

technology and other growth initiatives. We view this as constructive for

sustaining the company’s top-line momentum in the long-run, however it