American Express (AXP) Financials

American Express (NYSE: AXP) continues to show strong earnings and revenue growth. Total revenue increased from $15.1 billion in Q2 2023 to $19.6 billion in Q2 2026, representing growth of roughly 9% annually. Q2 2026 revenue rose 4% sequentially and 10% year over year, supported by both net interest income and non-interest income.

Profitability has also improved over the multi-year period. Net income increased from $2.17 billion in Q2 2023 to $3.11 billion in Q2 2026. Diluted earnings per share rose from $2.89 to $4.53 over the same period, helped by earnings growth and a steady reduction in the diluted share count, which fell from 741 million to 679 million.

The balance sheet has expanded alongside the business. Total assets reached $308.2 billion at the end of Q2 2026, up from $295.6 billion a year earlier and $228.4 billion at the end of 2022. Non-interest-bearing deposits rose to $157.0 billion, while common equity increased to $34.3 billion.

• Revenue growth remains consistent: Q2 revenue increased from $15.1 billion in 2023 to $16.3 billion in 2024, $17.9 billion in 2025 and $19.6 billion in 2026.
• Q2 2026 earnings improved year over year: Net income rose 7.8% from $2.89 billion to $3.11 billion, while diluted EPS increased 11% to $4.53.
• Share repurchases are boosting per-share results: AXP repurchased $2.3 billion of common stock in Q2 2026. The diluted share count has declined by approximately 8% since Q2 2023.
• Net interest income is recovering: Q2 2026 net interest income of $4.65 billion was up from $4.19 billion in Q2 2025 and $3.11 billion in Q2 2023.
• Credit-loss provisions declined: The provision for credit losses fell to $1.08 billion in Q2 2026 from $1.41 billion in Q2 2025, providing a lift to pre-tax income.
• Operating cash flow remains substantial: Cash from operating activities increased to $5.37 billion in Q2 2026 from $4.36 billion in Q2 2025 and $3.92 billion in Q2 2023.
• Deposits and equity are growing: Non-interest-bearing deposits increased approximately 5% year over year, while common equity rose from $32.3 billion to $34.3 billion.
• Capital returns are becoming more substantial: Quarterly dividends increased from $0.52 per share in Q3 2022 to $0.95 per share in Q1 2026, alongside continued buybacks.
• Investment activity is absorbing cash: AXP purchased $7.9 billion of investment securities in Q2 2026, contributing to $9.0 billion of negative investing cash flow. This may reflect balance-sheet investment rather than deteriorating operations.
• Expense growth is pressuring margins: Q2 2026 non-interest expense rose 12% year over year to $14.5 billion, outpacing the 10% increase in revenue. Marketing expense increased to $3.4 billion and other operating expenses reached $8.7 billion.

Cash management warrants attention. Despite positive operating cash flow, AXP reported an $8.5 billion decrease in cash and equivalents during Q2 2026. Investment purchases, debt repayments, share repurchases and dividends outweighed operating cash generation. This is not necessarily a warning sign for a financial institution, but investors should monitor whether these cash uses remain aligned with deposit growth, capital requirements and future loan demand.

Overall, the statements point to a company with durable top-line growth, improving per-share earnings and a strengthening capital base. The primary risks are rising operating costs, continued reliance on funding markets and the volatility of quarterly cash flows. Based on the provided financial data, the earnings and balance-sheet trends are broadly favorable, although investors should continue watching credit quality and expense discipline.