# American Express Co. (AXP)

> American Express issues payment cards, runs a card network, and helps merchants accept card payments.

- Exchange: NYSE · Sector: Financials · Industry: Credit Services
- Headquarters: New York, New York
- Founded: 1850
- Employees: 76,800 (as of 2025-12-31)
- SEC CIK: 0000004962 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000004962))
- Full page: https://inspectstocks.com/stocks/axp
- Data as of: price 2026-09-28; newest filing used 2026-07-24; latest fiscal period ended 2026-06-30

## Grade

**A** on the balance-sheet rubric used for lenders, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | $11.4B |  |
| Earnings growing overall | passed | $11.4B | $7.4B |
| Earnings growing recently | passed | $11.4B | $10.8B |
| Earns well on its assets | passed | 3.7% |  |
| Book value per share growing | passed | $48.09 | $32.86 |

Business quality (the + / − mark): 7 of 9 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 15.1% |  |
| Healthy profit margin | passed | 15.1% |  |
| Strong operating margin | failed | 7.2% |  |
| Good return on equity | passed | 34.2% |  |
| Debt under control | passed | 1.76 |  |
| Turns sales into cash | passed | 19.8% |  |
| Earns a wide spread on lending | passed | 6.1% |  |
| Runs the bank efficiently | failed | 73.9% |  |
| Credit losses well covered | passed | 6.6% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $76B |
| Net income, trailing twelve months | $11.4B |
| Free cash flow, trailing twelve months | $15.1B |
| Net margin | 15.1% |
| Return on equity | 34.2% |
| Debt to equity | 1.76 |
| Diluted EPS, trailing twelve months | $16.48 |
| Share price | $306.28 |
| Market value | $206.8B |
| Price / earnings | 18.6x |
| Price / sales | 2.7x |

## What the business does

American Express issues credit and charge cards to consumers and businesses, and earns money when cardholders spend, borrow, or pay card fees. It also signs up merchants to accept its cards, processes and settles payments, and runs a network used by cards issued by other institutions. Its services include banking, travel, dining, and expense management, and it operates as a regulated bank holding company in the United States.

### How it makes money

- **U.S. Consumer Services: cards and services for consumers in the United States** (48.0% (year ended 2025-12-31)) — Money comes from fees on consumer cards, fees charged to merchants when customers use those cards, interest on card balances and loans, and fees for related services. Segment shares are reported on the segment-data basis and do not reconcile to consolidated revenue.
- **Commercial Services: cards and payment services for businesses** (23.3% (year ended 2025-12-31)) — Money comes from fees on business and corporate cards, merchant fees on card spending, interest on balances and loans, and fees for payment and expense management services. Segment shares are reported on the segment-data basis and do not reconcile to consolidated revenue.
- **International Card Services: cards and services outside the United States** (17.9% (year ended 2025-12-31)) — Money comes from fees on consumer and business cards, merchant fees on card spending, interest on balances and loans, and fees for travel, foreign-currency spending, and loyalty services. Segment shares are reported on the segment-data basis and do not reconcile to consolidated revenue.
- **Global Merchant and Network Services: merchant services and card-network services** (10.7% (year ended 2025-12-31)) — Money comes from merchant fees for accepting American Express cards, fees for processing and settling payments, and fees for network, fraud-prevention, marketing, and data services. Segment shares are reported on the segment-data basis and do not reconcile to consolidated revenue.

### Products

- **Consumer Platinum and Gold cards** — Credit and charge cards for consumers, with benefits such as rewards, travel services, dining access, and airport lounge access.
- **Partner-branded cards** — Cards issued with partners such as Delta Air Lines, Marriott, British Airways, and Hilton, combining American Express card features with partner benefits.
- **Corporate and small-business cards** — Cards and payment services businesses use to pay expenses and manage employee spending.
- **Bank accounts and loans** — Consumer and business savings and checking accounts, consumer installment loans, and lines of credit for small businesses.
- **Merchant payment services** — Services that sign up merchants to accept American Express cards, process transactions, settle payments, and help prevent fraud.
- **Resy and Tock dining services** — Restaurant reservation and management services that give diners a way to book tables and restaurants tools to manage reservations.

### Customers

- Consumers who apply for cards directly or through partner promotions, then use them to pay for purchases or borrow.
- Small businesses that use cards, loans, bank accounts, and expense-management services for business spending.
- Mid-sized and large companies that use corporate cards and payment services to manage employee and supplier spending.
- Merchants that sign up directly or through a payment partner to accept American Express cards and pay fees on transactions.
- Banks and other financial institutions that license American Express branding and network services to issue cards or sign up local merchants.
- Customers who use American Express bank accounts, travel services, dining reservations, and related services.

### Competitors

- Visa (V) — Card payments network and card acceptance.
- Mastercard (MA) — Card payments network and card acceptance.
- China UnionPay — Card payments network and card acceptance.
- JCB — Card payments network and card acceptance.
- Discover (a Capital One division) (CO) — Capital One is the listed parent; Discover competes in card issuing and card payments networks.
- PayPal (PYPL) — Web and mobile payment services.

### What it depends on

- Delta Air Lines is its largest strategic partner. The Delta co-brand card portfolio represented approximately 13% of worldwide card spending (as of 2025-12-31, high) and approximately 21% of worldwide card-member loans (as of 2025-12-31, high); the agreement runs through the end of 2029 (term reported in the 10-K, high).
- The card business depends on merchants accepting American Express cards and on third-party banks, processors, and payment partners helping extend card acceptance and network reach.
- The business relies on computer systems and outside providers for payment processing, customer service, technology, and other operating services.
- As a regulated bank holding company, it depends on access to deposits and other funding and must meet banking capital, liquidity, and operating requirements.

### What could go wrong

- An economic slowdown or other disruption could reduce card spending and make it harder for cardholders and business partners to repay what they owe, affecting transaction revenue and loan losses.
- Competition, merchant pressure on acceptance fees, and merchant surcharges or steering could reduce card use, merchant relationships, or the fees earned when cards are accepted.
- Changes in banking, consumer-protection, payment, and data rules, or legal proceedings over merchant contract terms, could require changes to products and practices, increase costs, or lead to penalties.

## More on this company

- [Overview](https://inspectstocks.com/stocks/axp)
- [Financial statements](https://inspectstocks.com/stocks/axp/financials)
- [Competitors](https://inspectstocks.com/stocks/axp/peers)
- [Earnings](https://inspectstocks.com/stocks/axp/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.