Shares in credit card giants American Express (AXP) and Visa (V) were sold by investors after they posted quarterly results. Both firms reported an increase in sales and earnings but there were questions over the FY26 outlook.
| AmEx share price: $347 (-3.2%) | Visa share price: $323 (-2.4%) |
| AmEx market cap: $245bn | Visa market cap: $630bn |
SLOWDOWN AHEAD?
AmEx shares dropped 3.2% to $347 while Visa shares dropped 2.4% to $323. Last year, AmEx shares rose around 25% while Visa added than half that with an 11% gain.
American Express posted a 10% increase in Q4 revenue to $18.98 billion against a consensus forecast of $18.92 billion. The firm said growth came from increased member spending, fee growth and net interest income on balances.
Earnings per share were $3.53, up 16% on the previous year but marginally below market expectations of $3.54 per share. The firm guided for FY26 EPS of between $17.30 and $17.90 against analysts’ forecasts of $17.43.
‘2025 was a very strong year for American Express’, said CEO Stephen Squeri. ‘As demonstrated in our results, our investments are paying off, driving increased customer demand, engagement and loyalty,’ added Squeri.
Visa registered a 15% increase in revenue to $10.9 billion, beating Wall Street’s $10.7 billion estimate. EPS came in at $3.17 against the consensus of $3.14 and last year’s $2.75.
‘We had a very strong start driven by strong driver growth and a strong holiday season,’ said finance chief Christopher Suh. The firm also saw higher revenue from commercial and money movement solutions.
For Q2, however, the firm projected low double-digit growth in revenue and earnings, implying a slowdown from Q1. ‘We’re assuming the macroeconomic environment stays generally where it has been, and consumer spending remains resilient, added Suh.
American Express’s focus on the premium segment of the market has historically insulated it from economic slowdowns. The firm insists it still has excellent credit metrics and its customers are spending happily.
However, if Trump gets his way both AmEx and Visa face the prospect of a year-long cap on credit card interest rates. Although the firms and analysts have glossed over the idea, we wouldn’t be so quick to dismiss it.
Read the press releases here:
https://ir.americanexpress.com/investor-relations/default.aspx
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