American Express (AXP) AI Stock Analysis

• Market Cap: $248.70B
• Dividend Yield: 0.88%
• Average Volume (3M): 2.80M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.24
• Revenue Growth: 8.14%
• EPS Growth: 9.55%
• Country: US
• Employees: 75,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 4.14
• Shares Outstanding: 688,851,600
• 10 Day Avg. Volume: 3,009,090
• 30 Day Avg. Volume: 2,803,039
• PEG Ratio: 0.91
• Price to Book (P/B): 6.99
• Price to Sales (P/S): 2.85
• P/FCF Ratio: 17.43
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 3.59
• Enterprise Value/Ebitda: 15.91
• 1Y Price Target: $350.22
• Price Target Upside: -2.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 81 Outperform
• Price Target: $412.00 ▲(14.12% Upside)

American Express's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust revenue growth, profitability, and strategic focus on premium products and international markets are key strengths. Technical indicators suggest positive momentum, though caution is advised due to potential overbought conditions. Valuation metrics indicate the stock is fairly valued, with a modest dividend yield.

Positive Factors

Revenue Growth

The 11% YoY revenue growth reflects strong demand for American Express's products and services, indicating a robust business model and effective market strategies.

Product Innovation

Successful product innovation, such as the refreshed Platinum cards, enhances customer engagement and drives new account growth, supporting long-term revenue expansion.

International Market Expansion

Strong international spending growth highlights American Express's effective global expansion strategy, diversifying revenue streams and reducing reliance on domestic markets.

Negative Factors

Cost Pressures

Immediate benefit costs versus lagging fee revenue realization could pressure profit margins, potentially impacting long-term profitability if not managed effectively.

Service Revenue Growth

Limited contribution from the Global Business Travel Group transaction suggests challenges in growing service revenue, which could affect overall revenue diversification.

Profit Margin Decline

A decline in net profit margin indicates potential cost pressures or inefficiencies, which could affect long-term profitability if not addressed.

American Express Business Overview & Revenue Model

Company Description

American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide. The company operates through three segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services. Its products and services include payment and financing products; network services; accounts payable expense management products and services; and travel and lifestyle services. The company's products and services also comprise 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. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, third-party vendors 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.

How the Company Makes Money

American Express generates revenue through several key streams. The primary source is the fee income from cardholder transactions, where it earns a percentage of each transaction made with its cards. Additionally, American Express charges annual fees for its card memberships, particularly for premium cards with various benefits. The company also makes money through interest charges on outstanding balances carried by cardholders. Other significant revenue streams include merchant fees charged to businesses that accept American Express cards, as well as income from travel and lifestyle services. Partnerships with various merchants and loyalty programs enhance customer engagement, driving higher transaction volumes and contributing to overall earnings.

American Express Financial Statement Overview

Summary

American Express presents a strong financial position with consistent revenue and profit growth, high profitability margins, and efficient cash flow management. The low debt levels and high ROE are significant strengths. However, the company should monitor high liabilities and investing cash outflows to maintain financial stability.

Income Statement

The company has demonstrated strong revenue growth over the years, with a TTM revenue of $70.6 billion, up from $55.6 billion in 2022. The gross profit margin remains high at approximately 82.9%, indicating a healthy profitability level. Net profit margin is solid at 14.3% TTM, showcasing efficient cost management. However, the EBITDA margin decreased slightly, signaling potential cost pressures.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.046, indicating low leverage. ROE is impressive at 31.4%, showing strong returns on equity. The equity ratio stands at 10.9%, suggesting a balanced asset financing strategy. However, the high total liabilities may pose a risk if growth slows down.

Cash Flow

The company exhibits robust cash flow generation, with a TTM free cash flow of $18.7 billion. Free cash flow has grown steadily, supported by strong operating cash flow to net income ratio of 1.94. The free cash flow to net income ratio of 1.85 indicates efficient cash conversion. Nonetheless, investing cash outflows remain high, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.64B	74.20B	67.36B	55.63B	44.43B	38.34B
Gross Profit	65.29B	60.76B	55.59B	50.68B	44.57B	31.51B
EBITDA	14.75B	14.57B	12.16B	11.21B	12.38B	5.84B
Net Income	10.54B	10.13B	8.37B	7.51B	8.06B	3.13B
Balance Sheet
Total Assets	297.55B	271.46B	261.11B	228.35B	188.55B	191.37B
Cash, Cash Equivalents and Short-Term Investments	54.71B	41.51B	48.65B	38.39B	24.50B	54.47B
Total Debt	59.23B	51.09B	49.16B	43.92B	40.92B	44.83B
Total Liabilities	265.13B	241.20B	233.05B	203.64B	166.37B	168.38B
Stockholders Equity	32.42B	30.26B	28.06B	24.71B	22.18B	22.98B
Cash Flow
Free Cash Flow	18.94B	12.14B	17.00B	19.22B	13.10B	4.11B
Operating Cash Flow	21.14B	14.05B	18.56B	21.08B	14.64B	5.59B
Investing Cash Flow	-25.19B	-24.40B	-24.43B	-33.69B	-10.53B	11.63B
Financing Cash Flow	10.59B	4.44B	18.38B	24.51B	-14.93B	-9.07B

American Express Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 361.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXP, the sentiment is Positive. The current price of 361.03 is above the 20-day moving average (MA) of 337.81, above the 50-day MA of 331.64, and above the 200-day MA of 301.10, indicating a bullish trend. The MACD of 8.37 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 93.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXP.

American Express Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
V	―	$668.34B	34.24	51.18%	0.68%	11.38%	7.43%
AXP	―	$248.70B	24.24	33.70%	0.88%	8.14%	9.55%
MA	―	$511.61B	38.18	177.90%	0.54%	14.55%	13.25%
PYPL	―	$66.66B	15.04	24.36%	―	4.34%	19.71%
SYF	―	$26.91B	8.17	21.64%	1.50%	-6.38%	19.65%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COF	―	$140.33B	113.80	-0.07%	1.09%	10.51%	-81.56%

American Express Corporate Events

American Express Issues $2 Billion Fixed-Rate Notes

On October 24, 2025, American Express issued $2 billion in 4.804% Fixed-to-Floating Rate Notes due in 2036. This issuance is part of the company’s strategic financial management, potentially impacting its liquidity and market position.

The most recent analyst rating on (AXP) stock is a Buy with a $370.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Reports Strong Q3 2025 Results

American Express Company, a leading global payments and premium lifestyle brand, reported robust financial results for the third quarter of 2025, showcasing its strong market position and strategic advancements. The company achieved a record revenue of $18.4 billion, marking an 11% increase from the previous year, while earnings per share rose by 19% to $4.14, reflecting its effective growth strategies and customer engagement initiatives.

American Express Earnings Call Highlights Strong Growth

American Express’ recent earnings call conveyed a positive sentiment, underscored by significant revenue and EPS growth, robust cardmember spending, and the successful launch of its refreshed Platinum card. Despite some pressures from immediate benefit costs and a modest gain from the Global Business Travel Group, the company’s financial and operational performance was notably strong.

American Express Reports Strong Q3 2025 Financial Performance

On October 17, 2025, American Express reported a strong financial performance for the third quarter of 2025, with a record revenue of $18.4 billion, marking an 11% increase from the previous year. The company’s earnings per share rose by 19% to $4.14, driven by increased card member spending and successful product launches, including the refreshed U.S. Consumer and Business Platinum Cards. The company has raised its full-year guidance, reflecting confidence in its growth prospects and continued execution of its product refresh strategy.

The most recent analyst rating on (AXP) stock is a Hold with a $336.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Reports Stable Loan Delinquency Rates

American Express has released its delinquency and write-off statistics for U.S. Consumer and Small Business Card Member loans for the months ending September 30, August 31, and July 31, 2025. The data indicates a stable delinquency rate for both consumer and small business loans, with a slight decrease in the net write-off rate for small business loans over the three-month period. These statistics provide additional insight into the company’s credit performance, highlighting the variability in loan characteristics and the impact of external factors such as seasonality and reporting mechanics.

The most recent analyst rating on (AXP) stock is a Buy with a $380.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Announces Vice Chairman’s Retirement

On September 29, 2025, American Express announced the upcoming retirement of Vice Chairman Douglas E. Buckminster, effective March 2026. Buckminster, who has been with the company for nearly 40 years, has significantly contributed to the company’s growth and strategic direction, particularly in expanding its global premium Consumer Card Member base and driving revenue growth. His leadership and innovative strategies have left a lasting impact on the company’s operations and market positioning.

The most recent analyst rating on (AXP) stock is a Hold with a $362.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Reports Stable Loan Delinquency Rates

American Express has reported delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans for the months ending August 31, July 31, and June 30, 2025. The data indicates stable delinquency rates at 1.3% for consumer loans and 1.6% for small business loans, with net write-off rates showing slight variations. These statistics provide additional insights beyond the data reported by the American Express Credit Account Master Trust, highlighting differences in credit performance due to various factors such as loan mix and calculation methods.

The most recent analyst rating on (AXP) stock is a Buy with a $375.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Reports July 2025 Loan Performance

American Express reported delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans for the months ending July 31, June 30, and May 31, 2025. The data reveals that the delinquency rates for consumer loans remained steady at 1.3%, while small business loans saw a slight increase from 1.5% to 1.6%. The net write-off rates for consumer loans slightly decreased from 2.1% to 2.0%, whereas small business loans experienced an increase from 2.4% to 2.7%. These statistics provide additional insights into the credit performance of American Express’s loan portfolios, which may differ from the performance of loans securitized through the American Express Credit Account Master Trust.

The most recent analyst rating on (AXP) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.