American Express Boosts Revenue Forecast Amid Increased Spending Plans

American Express has revised its revenue guidance upward for this year and beyond. The company's top line is expected to be 10% above last year's, with a new target of $72.2 billion for 2026. This growth won't be matched by profit growth, however, as American Express expects per-share earnings to remain between $17.30 and $17.90 for the year.

According to CFO Christophe Le Caillec, this discrepancy is due to increased investments in customer acquisition and technology development. The company plans to spend more on marketing, with a 10% increase expected in the second half of 2026. American Express will also use some of its extra revenue to fund the planned acquisition of online restaurant reservation platform TheFork.

Investors were initially concerned by the news, sending shares down over 4% after the announcement. However, American Express has a strong track record of delivering growth from these kinds of investments. In fact, the company's top line has more than doubled over the past decade, with profits growing along with it.