American Express (AXP) Q3 2026 Earnings Call: Q&A Summary

Q: Sanjay Sakhrani of KBW asked how the company would adjust its model if customers gamify rewards and allocate spending to the highest benefit.

A: Stephen Squeri explained that the company competes on access, service, and security rather than just points. He noted they have levers like spend thresholds to prevent gaming the system.

Q: Erika Najarian of UBS asked about the company's approach to AI agents accessing their systems.

A: Stephen Squeri stated they will take a risk-based approach, only allowing approved agents via API or MCP channels to protect customers and merchants.

Q: Ryan Nash of Goldman Sachs asked about the sustainability of spend trends and confidence in mid-teens EPS growth.

A: Christophe Le Caillec noted that VCE growth will moderate to pre-refresh levels, supporting mid-teens EPS, while U.S. consumer spend grew 9.4%.

Q: Don Fandetti of Wells Fargo asked about market share in the U.S. consumer segment and international billings moderation.

A: Stephen Squeri noted that international growth remains strong at 11% and the competitive environment has been consistent for 10 years.

Q: An unknown analyst asked about competitive intensity in the premium card environment.

A: Stephen Squeri stated the environment is highly competitive but consistent with historical trends.

Q: Rob Wildhack of Autonomous Research asked about the allowance coverage ratio and the normal environment.

A: Christophe Le Caillec explained the 2.6% ratio reflects the premiumization of the portfolio, with delinquency rates stable at 1.2% to 1.3%.

Q: Terry Ma of Barclays asked if there is a change in revolve behavior or lending strategy.

A: Stephen Squeri stated they are not changing underwriting and do not require customers to borrow to maintain a profitable relationship.

Q: John Pancari of Evercore ISI asked about the outlook for card fee growth in the fourth quarter and 2027.

A: Christophe Le Caillec confirmed the 17% FX-adjusted growth is the expected inflection point and declined to provide specific 2027 guidance.

Q: Darrin Peller of Wolfe Research asked about progress on commercial segment initiatives.

A: Stephen Squeri highlighted the focus on the middle market using the Center acquisition and new products like business savings and corporate cashback.

Q: Mihir Bhatia of Bank of America asked about the impact of the Visa and Mastercard settlement on the network business.

A: Stephen Squeri noted they have pivoted to partnering with smaller banks and do not believe surcharging has impacted business momentum.

Q: Cris Kennedy of William Blair asked about the role of digital banking products.

A: Stephen Squeri said banking services are a key part of the core strategy to deepen customer relationships.