American Express Q1 2026 Achievements: The Factors Behind Record Growth

Factors behind American Express’s strongest quarter in three years (Q1 2026)

American Express described Q1 2026 as a “very strong start to the year,” highlighting the quarter’s spend growth of 10% (9% FX-adjusted), the highest quarterly growth in three years.¹²³ Management attributed this strength to a combination of premium-card momentum, broad-based spend across categories, strong international growth, and continued excellent credit performance, with supportive contributions from product/partnership initiatives and technology investment.

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1) Premium product momentum—especially U.S. Platinum after the refresh

• Management reported accelerated spend growth in the U.S. Platinum portfolio following the refresh, alongside high retention rates after the fee increase.¹
• They also stated that the refresh is driving high engagement with membership assets for U.S. consumer card members.⁴
• Specific engagement/spend indicators included:
  • Lodging spend (fine hotels and resorts / hotel collection programs) up 50% year-over-year.⁴
  • Dining spin at U.S. restaurants up 20%.⁴
• In terms of acquisition, they reported 3.1 million new card accounts (COGS) acquired in the quarter, with momentum in acquiring younger customers and attracting customers onto fee-paying products.⁴

Why this matters: AXP’s spend growth is a core driver of revenue, and management explicitly linked the quarter’s acceleration to premium portfolio performance.²

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2) Broad-based category strength (Goods/Services and T&E driving the acceleration)

• Management said card member spending grew 10% on a reported basis, described as the highest quarterly growth in three years, driven by strong growth across both Goods and Services and T&E.¹
• They added that spend growth was about 1 percentage point higher than Q4, driven by:
  • T&E up 9% (FX-adjusted), while
  • Goods and services remained stable at 8% (FX-adjusted).²
• By merchant category, management cited continued strength including:
  • Retail spending up 11% (FX-adjusted), and luxury retail up 18%, reflecting strength of the premium customer base.²
  • Restaurant spending up 9%.²
  • Airline spending up 8%, attributed to higher growth across consumers, SMEs, and large corporates (with some airline softness later in March/early April due to travel disruptions).²

Why this matters: “Broad-based” is important because it suggests the quarter’s strength wasn’t isolated to one spending channel.²

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3) International growth remained a major contributor (billings up double digits for an extended run)

• Management called international AXP’s fastest-growing segment, with billings up double digits for the 20th consecutive quarter on an FX-adjusted basis.¹
• They quantified international performance further, stating ICS was up 13% FX-adjusted in the quarter (including impact of the weaker dollar), and spend growth was up 20%.⁴

Why this matters: With U.S. premium spend accelerating, international “double-digit for many quarters” momentum likely reinforced overall company results.¹⁴

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4) Healthy demand/engagement with premium products and strong new-account mix

• Management said they saw strong demand and engagement with premium products, including accelerated spend growth on U.S. Platinum and continued strong demand for fee-based products.¹²
• They reported that over 70% of new accounts are on fee-paying products.¹²
• They also noted continued strong new customer acquisition and accelerated U.S. Platinum spend growth in the wake of the refresh.¹⁴

Why this matters: A high proportion of new accounts on fee-paying products typically supports sustainable spend and revenue growth, and management linked this to overall momentum.¹²

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5) Portfolio quality / credit performance remained excellent (supporting sustainable spend and economics)

• Management emphasized that credit performance remained excellent and “best in class”.¹
• They stated delinquency and write-off rates were still below 2019 levels, supporting confidence in performance.²
• They also described credit stability:
  • Delinquency rates flat to last quarter and write-off rates slightly down.⁵
  • Provision expense of $1.3 billion included a $24 million reserve release, mostly driven by lower ND card balances vs. Q4.⁵

Why this matters: Strong credit performance reduces the risk of earnings volatility and allows management to sustain growth initiatives without compromising underwriting discipline.¹²⁵

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6) Operating/strategic factors that management cited as reinforcing momentum (technology, AI, and commercial/partnership initiatives)

While the “strongest quarter in three years” framing was directly tied to spend growth drivers, management also pointed to actions that likely supported engagement and spend generation:

• Investments in marketing and technology: After strong Q1 results, AXP said it increased investments in marketing and technology to capitalize on growth opportunities and build on momentum.¹³⁶
• AI/Agentic Commerce developments: Management referenced development of AI capabilities and initiatives like the ACE Developer Kit to integrate Amex cards into AI-powered transactions with trust and control, alongside agent purchase protection.⁷⁸
• Commerce/product roadmap and commercial expansion announcements: In the quarter, AXP announced a commercial product/solutions roadmap starting in 2026 that includes the launch of Graphite Business Cash Unlimited and plans for 8 enhanced products—described as the most significant 1-year commercial product expansion in the company’s history.⁷
• Premium experiences and partnerships: Management highlighted new/additional sports and entertainment agreements, including the NFL multiyear partnership making Amex the League’s official payments partner beginning with the 2026 season, plus other stadium/league partnerships and airport lounge expansions.⁹

Why this matters: These initiatives are not presented as the sole cause of Q1 spend acceleration, but they help explain how AXP reinforced its premium value proposition and engagement engines during the quarter.⁹⁷⁸³

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Bottom line

Management attributed AXP’s strongest quarter in three years (Q1 2026) primarily to 10% card member spend growth (9% FX-adjusted), the highest in three years, driven by accelerated U.S. Platinum spend post-refresh, broad-based category strength (Goods & Services and T&E), continued double-digit international growth, and excellent credit performance that maintained stability.¹²⁴⁵

Secondary reinforcing factors included premium customer engagement initiatives (experiences/partnerships) and increased investment in marketing, technology, and AI-enabled capabilities.⁹¹³⁷⁸