American Express(US:AXP)2026-02-10 19:02American Express Company (NYSE:AXP) 2026 Conference Summary Company Overview - Company: American Express Company (AXP) - Date of Conference: February 10, 2026 - Key Speaker: Christophe Le Caillec, CFO Key Points Industry and Market Performance - Consumer Spending: Global spend growth remained strong at 7% to 8% throughout the year, with an uptick in the second half of 2025 [6][7] - Travel and Entertainment: Notable growth in travel and entertainment spending, particularly front-of-cabin travel at 9% and luxury lodging at 12% [6] - Holiday Shopping: Holiday shopping season saw a 9% increase, with Platinum card members spending up 12% [7] Financial Health - Consumer Credit Metrics: American Express reported very low write-off and delinquency rates, indicating a strong consumer balance sheet [7] - Fee Performance: The company has seen strong performance in fee income, particularly from premium products, which supports the business model [8] Card Acquisition and Strategy - New Card Acquisitions: There was a sequential decline in new cards acquired from Q3 to Q4 2025, but this was attributed to the non-linear nature of marketing programs [22][25] - Focus on Fee-Paying Cards: The strategy emphasizes acquiring fee-paying card members rather than maximizing the number of new cards [25] - Average Fee Increase: The average fee paid per account increased significantly due to high demand for premium products, particularly the Platinum Card [23][24] Product Development and Engagement - Platinum Card Refresh: The recent refresh of the Platinum Card has been more successful than previous refreshes of Gold and Delta cards, with strong demand and engagement metrics [29] - Travel Bookings: A 30% increase in travel bookings was reported, attributed to the new Platinum value proposition [32] - Engagement Metrics: High retention rates of 99% for consumer cards and 98% for small business cards were noted [31] International Growth - International Market: International growth is a major source of revenue, with a focus on premium products and younger demographics, particularly Gen Z and millennials [55] - Market Share: American Express holds about 6% market share in major international markets, indicating significant growth potential [56] Technology and Operational Efficiency - Tech Investments: The company plans to reach $5 billion in annual tech spend, focusing on AI and operational efficiencies [70] - Operational Efficiency: Operating expenses as a ratio to revenue decreased from 26% to 22% over three years, highlighting improved operational leverage [72] Valuation and Shareholder Returns - Stock Buybacks: The company is committed to returning capital to shareholders through stock buybacks, with a focus on maintaining a strong return on equity of 36% [86][87] - EPS Growth Guidance: American Express is guiding towards mid-teens EPS growth, supported by strong credit profiles and business momentum [86] Regulatory Environment - Credit Card Competition Act: The company maintains a neutral stance on the Credit Card Competition Act, indicating that it does not expect significant impacts on its business model [10][14] Additional Insights - Consumer Behavior: The company noted that younger consumers prefer digital interactions, with 63% of Gen Z interactions occurring online compared to only 13% for Baby Boomers [79] - Lending Innovations: The introduction of features like "Pay Over Time" has contributed significantly to balance growth, meeting the revolving needs of premium card members [48][52] This summary encapsulates the key insights and metrics discussed during the American Express conference, highlighting the company's strong performance, strategic focus on premium products, and commitment to shareholder value.