AMERICAN EXPRESS CO
For the period ended Jun 30, 2026. Filed Jul 24, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 24, 2026
AXP$320.99-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-23.
0000004962-26-000192
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)Current report: 10-Q
Period ended 2026-06-30; filed 2026-07-24.
0000004962-26-000322
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 313 previous paragraphs and 317 current paragraphs.
202 unchanged; 85 reworded; 29 added; 23 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 22 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
We delivered strong results for the second quarter of 2026, reflecting the strength of our premium customer base, success of our product refresh strategy and power of our differentiated Membership Model. The combination of Card Member spend and revenue momentum, excellent credit performance and disciplined expense management together drove net income for the second quarter, which was $3.1 billion, or $4.53 per share, compared with net income of $2.9 billion, or $4.08 per share, a year ago.
Current report
Card balances and Other loans increased 8 percent, in line with billed business. Provisions for credit losses decreased, primarily driven by a reserve release in the current period compared to a reserve build in the prior period, reflecting further strengthening of portfolio credit performance. The net write-off rate — principal only of 2.0 percent remained stable while the delinquency rate declined to 1.2 percent, reflecting our strategy to invest in the value propositions of our premium products that attract customers with high credit quality.
Current report
During the second quarter, we announced that we will sell our approximately 30 percent equity interest in Global Business Travel Group, Inc. pursuant to its pending acquisition. Upon closing, we expect to recognize a sizable pre-tax gain, which will be reflected in Other expense.
Current report
Provision for Card balance credit losses decreased for both the three and six month periods, primarily due to reserve releases in the current periods versus reserve builds in the prior periods, partially offset by higher net write-offs. The reserve releases in the current periods were primarily driven by lower delinquencies, partially offset by sequential increases in Card balances. The reserve builds in the prior periods were primarily driven by sequential increases in Card balances and reflected the macroeconomic outlook, partially offset by the release of a reserve upon the reclassification of a small business cobrand portfolio to Card balances HFS.
Current report
Provision for other credit losses decreased for both the three and six month periods, primarily due to reserve builds for Other loans in the prior periods, partially offset by higher net write-offs in the current periods. The reserve builds in the prior periods were primarily driven by sequential increases in Other loans.
Current report
Marketing expense increased for both the three and six month periods, primarily driven by higher levels of spending on customer acquisition and other growth initiatives.
Current report
Net card fees increased 17 percent for both the three and six month periods, primarily driven by growth in our premium card portfolios.
Current report
Interest expense decreased for both the three and six month periods, primarily driven by lower interest rates, partially offset by higher cost of funds due to segment net asset growth.
Current report
Provision for Card balance credit losses decreased for the current three month period, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Provision for Card balance credit losses decreased for the current six month period, primarily due to a reserve release in the current period versus a reserve build in the prior period and lower net write-offs. The reserve releases in the current periods were primarily driven by lower delinquencies, partially offset by a sequential increase in Card balances in the current three month period. The reserve build in the prior three month period was primarily driven by a sequential increase in Card balances and reflected the macroeconomic outlook, partially offset by lower delinquencies. The reserve build in the prior six month period was primarily driven by the macroeconomic outlook, partially offset by lower delinquencies.
Current report
Marketing expense was relatively flat for both the three and six month periods.
Current report
Salaries and employee benefits and other operating expenses increased for both the three and six month periods, primarily due to increases in allocated service costs.
Current report
Net card fees increased 12 percent and 11 percent for the three and six month periods, respectively, primarily driven by growth in our premium card portfolios.
Current report
Service fees and other revenue increased 7 percent and 8 percent for the three and six month periods, respectively, primarily driven by higher travel commissions and fees.
Current report
Interest expense decreased for both the three and six month periods, primarily driven by lower interest rates, partially offset by a higher cost of funds driven by segment net asset growth.
Current report
Provision for Card balance credit losses increased for the current three month period, primarily due to higher net write-offs, partially offset by a reserve release in the current period versus a reserve build in the prior period. Provision for Card balance credit losses increased for the current six month period, primarily driven by higher net write-offs and a higher reserve build in the current period. The reserve release in the current three month period was primarily driven by lower delinquencies, partially offset by a sequential increase in Card balances. The reserve build in the current six month period was primarily driven by a sequential increase in Card balances, partially offset by lower delinquencies. The reserve builds in the prior periods were primarily driven by the macroeconomic outlook, partially offset by the release of a reserve upon the reclassification of a small business cobrand portfolio to Card balances HFS. A sequential increase in Card balances also drove the reserve build in the prior six month period.
Current report
Total expenses increased for both the three and six month periods, primarily driven by higher Card Member rewards, Card Member services and Business development expenses.
Current report
Business development expense increased for both the three and six month periods, primarily due to increased client incentives, driven by higher billed business and contractual rates.
Current report
Marketing expense increased for both the three and six month periods, primarily driven by higher levels of spending on customer acquisition and other growth initiatives.
Current report
Salaries and employee benefits and other operating expenses decreased for the three month period and was relatively flat for the six month period. The decrease for the three month period was primarily driven by the previously-mentioned gain on the sale of a small business cobrand portfolio, a prior-year increase in legal reserves and higher technology costs, partially offset by increases in allocated service costs and higher professional service fees. The six month period also reflected additional allocated service costs compared to the prior year.
Current report
Net card fees increased 14 percent and 18 percent for the three and six month periods, respectively (14 percent and 15 percent, respectively, on an FX-adjusted basis), primarily driven by growth in our premium card portfolios.2
Current report
Total expenses increased for both the three and six month periods, primarily driven by higher Card Member rewards, Card Member services and Salaries and employee benefits and other operating expenses.
Current report
Service fees and other revenue increased 12 percent and 13 percent for the three and six month periods, respectively, primarily driven by increases in network partnership revenues due to higher network volumes.
Current report
Provision for credit losses increased for both the three and six month periods, primarily due to reserve builds related to partner obligations in the current periods versus reserve releases in the prior periods, partially offset by lower net write-offs.
Current report
Business development expense increased for both the three and six month periods, primarily driven by increased partner payments due to higher network volumes.
Current report
Marketing expense increased for the three month period and decreased for the six month period. The increase for the three month period was primarily driven by higher levels of spending on merchant engagement and other growth initiatives. The decrease for the six month period was driven by lower levels of spending on merchant engagement and other growth initiatives.
Current report
Salaries and employee benefits and other operating expenses increased for both the three and six month periods, primarily driven by higher compensation costs.
Current report
(b)Euro Interbank Offered Rate (EURIBOR).
Current report
(c)Represents total net cash outflow multiplied by an adjustment of 85 percent, which continues to apply through the transition period following American Express Company becoming a Category II firm in the second quarter of 2026.
Current report
•our ability to satisfy the closing conditions related to our proposed acquisition of TheFork, including completion of a labor consultation process and receipt of regulatory approvals, and consummate the transaction; the underlying assumptions related to the transaction proving to be inaccurate or unrealized; and our ability to integrate TheFork and benefit from and expand its platform, tools and capabilities, which will depend in part on management’s decisions regarding future operations, strategies and business initiatives;
Removed paragraphs (23)
Previous report
We delivered strong results for the first quarter of 2026, reflecting continued momentum across the business and execution of our proven growth strategy. We had strong engagement on our refreshed U.S. Platinum products, expanded our membership assets with new and renewed partnerships, and furthered the development of our artificial intelligence (AI) capabilities in the quarter. Net income for the first quarter was $3.0 billion, or $4.28 per share, compared with net income of $2.6 billion, or $3.64 per share, a year ago.
Previous report
Card balances and Other loans increased 8 percent, in line with recent trends. Provisions for credit losses increased, primarily due to higher net write-offs and a lower reserve release in the current period. The reserve release in the current period was primarily driven by a sequential decrease in Card balances; reserves for credit losses reflect uncertainty in the macroeconomic environment. Net write-off and delinquency rates remained stable and best-in-class, supported by our premium customer base.
Previous report
Provision for Card balance credit losses increased, primarily due to a lower reserve release in the current period and higher net write-offs. The reserve release in the current period was primarily driven by a sequential decrease in Card balances. The reserves reflect uncertainty in the macroeconomic environment. The reserve release for the prior period reflected the quality of our premium customer base and the macroeconomic outlook.
Previous report
Marketing expense was relatively flat, reflecting consistent levels of spending on customer acquisition and brand advertising.
Previous report
Net card fees increased 18 percent, primarily driven by growth in our premium card portfolios.
Previous report
Interest expense was relatively flat, reflecting lower interest rates, offset by higher cost of funds due to segment net asset growth.
Previous report
Provision for Card balance credit losses increased, primarily due to a lower reserve release in the current period, partially offset by lower net write-offs. The reserve release in the current period was primarily driven by a sequential decrease in Card balances. Our reserves for the prior period reflected the quality of our customer base and the macroeconomic outlook.
Previous report
Marketing expense was relatively flat, reflecting consistent levels of spending on customer acquisition and brand advertising.
Previous report
Salaries and employee benefits and other operating expenses increased, primarily due to an increase in allocated service costs and compensation costs.
Previous report
Net card fees increased 10 percent, primarily driven by growth in our premium card portfolios.
Previous report
Interest expense was relatively flat, reflecting higher cost of funds due to segment net asset growth, offset by lower interest rates.
Previous report
Provision for Card balance credit losses increased, primarily due to a reserve build in the current period versus a reserve release in the prior period and higher net write-offs. The reserve build in the current period was primarily driven by higher delinquencies. The reserve release in the prior period reflected the quality of our customer base.
Previous report
Total expenses increased, primarily driven by higher Card Member rewards, Card Member services, Business development and Salaries and employee benefits and other operating expenses.
Previous report
Business development expense increased, primarily due to higher client incentives, which were driven by higher billed business.
Previous report
Marketing expense decreased, reflecting lower levels of spending on customer acquisitions and other growth initiatives.
Previous report
Salaries and employee benefits and other operating expenses increased, primarily due to an increase in allocated service costs.
Previous report
Net card fees increased 22 percent (15 percent FX-adjusted), primarily driven by growth in our premium card portfolios.2
Previous report
Service fees and other revenue increased 21 percent (11 percent FX-adjusted). The current year reflected higher foreign-exchange related revenues associated with Card Member cross-currency spending, including such revenues now included from Swisscard, and higher loyalty coalition-related fees. The prior year reflected revenues previously earned from Swisscard as a joint venture.2
Previous report
Total expenses increased, primarily driven by higher Card Member rewards and Card Member services expenses.
Previous report
Marketing expense decreased, primarily due to lower spend on merchant engagement and other growth initiatives.
Previous report
Salaries and employee benefits and other operating expenses increased, primarily driven by higher compensation costs.
Previous report
(c)Represents total net cash outflow multiplied by an adjustment of 85 percent because American Express Company is a Category III firm with less than $75 billion in average weighted short-term wholesale funding.
Previous report
In 2025, the net cash provided by investing activities was primarily driven by lower Card balances outstanding.
Reworded paragraphs (85)
Previous wording
We have updated our presentation and disclosure of Card Member loans and Card Member receivables to present them on a combined basis as Card balances. Results for the first quarter of 2026 and prior periods have been reclassified to conform to the new presentation. Previously, Card Member loans represented balances on our credit card products and revolve-eligible balances on our charge card products, which included balances that Card Members paid in full as well as balances that Card Members paid over time with interest, and Card Member receivables represented balances on our charge card products that need to be paid in full on or before the Card Member’s payment due date. The updated Card balances presentation includes both revolve-eligible balances and balances that need to be paid in full, reflecting the evolution of our card products over time, primarily due to the expansion of lending features on our charge card portfolio, and is more consistent with industry convention. This presentation change has no impact on the recognition or measurement of outstanding Card balances and associated reserves for credit losses.
Current wording
Beginning in the first quarter of 2026, we have updated our presentation and disclosure of Card Member loans and Card Member receivables to present them on a combined basis as Card balances. Prior period amounts have been reclassified to conform to the new presentation. Previously, Card Member loans represented balances on our credit card products and revolve-eligible balances on our charge card products, which included balances that Card Members paid in full as well as balances that Card Members paid over time with interest, and Card Member receivables represented balances on our charge card products that need to be paid in full on or before the Card Member’s payment due date. The updated Card balances presentation includes both revolve-eligible balances and balances that need to be paid in full, reflecting the evolution of our card products over time, primarily due to the expansion of lending features on our charge card portfolio, and is more consistent with industry convention. This presentation change has no impact on the recognition or measurement of outstanding Card balances and associated reserves for credit losses.
Previous wording
(b)Reflects net income, less (i) earnings allocated to participating share awards of $19 million and $18 million for the three months ended March 31, 2026 and 2025, respectively, and (ii) dividends on preferred shares of $14 million for both the three months ended March 31, 2026 and 2025.
Current wording
(b)Reflects net income, less (i) earnings allocated to participating share awards of $20 million and $18 million for the three months ended June 30, 2026 and 2025, respectively, and $39 million and $36 million for the six months ended June 30, 2026 and 2025, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2026 and 2025, and $29 million for both the six months ended June 30, 2026 and 2025.
Previous wording
Billed business growth accelerated to 10 percent year-over-year (9 percent FX-adjusted).1 G&S spend grew 10 percent (8 percent FX-adjusted), driven by continued momentum in retail spending. T&E spend grew 12 percent (9 percent FX-adjusted), reflecting sustained strength in restaurant and acceleration in airline spend, although we saw airline spend soften in the last few weeks of the quarter with travel disruptions from the Middle East conflict.1 Overall transaction growth of 10 percent for the quarter reflects continued strong engagement from our customers.
Current wording
Billed business grew 9 percent year-over-year, reflecting broad-based growth across both Goods & Services (G&S) and Travel & Entertainment (T&E) spend categories. G&S spend grew 9 percent, driven by continued momentum in retail spending. T&E spend grew 10 percent, driven by sustained strength in restaurant spend and further acceleration in airline spend. Overall transaction growth of 10 percent for the quarter reflected continued strong engagement from our customers.
Previous wording
U.S. Consumer Services billed business grew 10 percent, with continued momentum in spending by Millennial and Gen-Z Card Members, our largest and fastest-growing cohort. Growth also reflected engagement across our premium card portfolios, including an acceleration in U.S. Platinum spend. Commercial Services billed business grew 4 percent, reflecting continued modest growth from U.S. small and mid-sized enterprise (SME) Card Members. Commercial Services included billed business from small business cobrand held-for-sale portfolios, which will be exited over the course of the year. Billed business for International Card Services, our fastest-growing segment, grew 20 percent (13 percent FX-adjusted), driven by continued strong growth in spend across geographies and customer types outside the United States.1
Current wording
U.S. Consumer Services billed business grew 11 percent, driven by our premium card portfolios, including the acceleration in the U.S. Platinum portfolio following the refresh last year. We continue to see strong engagement from our younger customers, with continued momentum in spending by Millennial and Gen-Z Card Members, our largest and fastest-growing cohort. Commercial Services billed business grew 5 percent, reflecting an acceleration in growth from U.S. small and mid-sized enterprise (SME) Card Members. We expect a moderation in spend growth as we exit small business cobrand held-for-sale portfolios. Billed business for International Card Services, our fastest-growing segment, grew 13 percent (12 percent FX-adjusted), driven by continued strong growth in spend across geographies and customer types.1
Previous wording
Total revenues net of interest expense increased 11 percent (10 percent FX-adjusted).1 Growth in billed business drove a 9 percent increase in Discount revenue, our largest revenue line. Net card fees grew 18 percent, reflecting high levels of new card acquisitions, strong Card Member retention and our ongoing cycle of product refreshes. Net interest income grew 13 percent, primarily reflecting growth in balances and net yield expansion.
Current wording
Total revenues net of interest expense increased 10 percent. Growth in billed business drove a 9 percent increase in Discount revenue, our largest revenue line. Net card fees grew 15 percent, reflecting high levels of new card acquisitions, strong Card Member retention and our ongoing cycle of product refreshes. Net interest income grew 11 percent, primarily reflecting growth in balances and net yield expansion, partially offset by the impact from the exit of one of the small business cobrand held-for-sale portfolios, as mentioned above.
Previous wording
Growth in Card Member rewards, Card Member services and Business development expenses were driven by volumes, usage and enhancements we made to the value propositions of our refreshed U.S. Platinum cards. Marketing expense was relatively flat year-over-year. We plan to continue to invest in growth initiatives, including acquiring high spending, high credit-quality customers. Operating expense growth continues to reflect our investments in our colleagues and technology to support business growth. We remain focused on driving marketing and operating expense efficiencies over time.
Current wording
Growth in Card Member rewards, Card Member services and Business development expenses (collectively, variable customer engagement expenses) were driven by Card Member spending, including in categories like airlines where customers earn and use rewards, enhancements we made to the value propositions of our refreshed U.S. Platinum cards last year and usage of Card Member benefits. Marketing expense increased 6 percent year-over-year as we continued to invest to acquire, engage and retain high-spending, high credit-quality customers. We continue to invest in and enhance our Membership Model of premium payment products, differentiated membership services and partnerships, including our proposed acquisition of TheFork, an online restaurant reservation and management platform in Europe. Operating expense growth continues to reflect our investments in our colleagues and technology to support business growth. We remain focused on driving marketing and operating expense efficiencies over time.
Previous wording
During the first quarter, we maintained our Common Equity Tier 1 (CET1) capital ratio within our target range of 10 to 11 percent and returned $2.3 billion of capital to our shareholders in the form of share repurchases and common stock dividends. We plan to continue to return to shareholders the excess capital we generate while managing our CET1 capital ratio within our target range and supporting balance sheet growth. Our robust capital, funding and liquidity positions provide us with significant flexibility to maintain a strong balance sheet.
Current wording
During the second quarter, we maintained our Common Equity Tier 1 (CET1) capital ratio within our target range of 10 to 11 percent and returned $2.9 billion of capital to our shareholders in the form of share repurchases and common stock dividends. We plan to continue to return to shareholders the excess capital we generate while managing our CET1 capital ratio within our target range and supporting balance sheet growth. Our robust capital, funding and liquidity positions provide us with significant flexibility to maintain a strong balance sheet.
Previous wording
The resiliency of our differentiated business model and the strength and stability of our performance give us confidence to navigate evolving competition and a range of economic environments. While we recognize the uncertainty of the geopolitical and regulatory landscape, we continue to manage the company for the long term, focusing on backing our customers and colleagues, exercising disciplined expense management and strategically investing in our business.
Current wording
Our results for the quarter demonstrate the strength of our differentiated business model and give us confidence in our ability to drive sustainable growth. While we recognize the uncertainty of the geopolitical and regulatory landscape, we continue to manage the company for the long term, focusing on backing our customers and colleagues, continuing to strengthen our risk management capabilities and strategically investing in our business.
Previous wording
The discussions in both “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three months ended March 31, 2026 compared to the same period in the prior year, as presented in the accompanying tables.
Current wording
The discussions in both “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three and six months ended June 30, 2026 compared to the same periods in the prior year, as presented in the accompanying tables.
Previous wording
Discount revenue increased, driven by an increase in billed business of 10 percent, partially offset by lower average merchant discount rates primarily due to shifts in geographic and merchant spend mix. See Tables 5 and 6 for more details on billed business performance.
Current wording
Discount revenue increased for both the three and six month periods, driven by increases in billed business of 9 percent and 10 percent, respectively, partially offset by lower average merchant discount rates primarily due to shifts in spend mix by geography and merchant categories. See Tables 5 and 6 for more details on billed business performance.
Previous wording
Net card fees increased, primarily driven by growth in our premium card portfolios. See Table 5 for more details on proprietary new card acquisitions, proprietary cards-in-force and average fee per card.
Current wording
Net card fees increased for both the three and six month periods, primarily driven by growth in our premium card portfolios. See Table 5 for more details on proprietary new card acquisitions, proprietary cards-in-force and average fee per card.
Previous wording
Service fees and other revenue increased 14 percent, primarily driven by increases in network partnership revenues and foreign-exchange related revenues associated with Card Member cross-currency spending.
Current wording
Service fees and other revenue increased for both the three and six month periods, primarily driven by increases in network partnership revenues, foreign-exchange related revenues associated with Card Member cross-currency spending, loyalty coalition-related fees and travel commissions and fees from our consumer travel business.
Previous wording
Interest expense was relatively flat, reflecting growth in customer deposits and long-term debt, offset by lower interest rates paid on customer deposits.
Current wording
Interest expense decreased for both the three and six month periods, primarily driven by lower interest rates paid on customer deposits, partially offset by growth in customer deposits.
Previous wording
Card Member rewards expense increased, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $353 million, and cobrand rewards expense of $160 million, all of which were primarily driven by higher billed business. The increase in Membership Rewards expense was also driven by changes to the Membership Rewards program for U.S. Business Platinum cards.
Current wording
Card Member rewards expense increased for both the three and six month periods, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $277 million and $630 million, and cobrand rewards expense of $155 million and $315 million, respectively, all of which were primarily driven by higher billed business. The increases in Membership Rewards expense for the three and six month periods were also driven by changes to the Membership Rewards program for U.S. Business Platinum cards, partially offset by a benefit from enhancements to the models that estimate future redemptions of Membership Rewards points by U.S. Card Members.
Previous wording
The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 97 percent (rounded up) and 96 percent (rounded down) as of March 31, 2026 and 2025, respectively.
Current wording
The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 96 percent (rounded down) as of both June 30, 2026 and 2025.
Previous wording
Business development expense increased, primarily due to increased partner payments and higher client incentives and loyalty coalition-related costs, partially offset by a reserve release related to the allocation of revenue to a joint venture partner as a result of a final arbitration award.
Current wording
Business development expense increased for both the three and six month periods, primarily due to increased partner payments and higher client incentives, driven by higher network volumes. The increase for the six month period was partially offset by a reserve release related to the allocation of revenue to a joint venture partner as a result of a final arbitration award.
Previous wording
Card Member services expense increased, primarily due to higher usage of Card Member benefits and the new U.S. Platinum benefits.
Current wording
Card Member services expense increased for both the three and six month periods, primarily due to higher usage of Card Member benefits and the new U.S. Platinum benefits.
Previous wording
Salaries and employee benefits expense increased, primarily driven by higher compensation and incentive costs.
Current wording
Salaries and employee benefits expense increased for both the three and six month periods, primarily driven by higher compensation and incentive costs.
Previous wording
Other expenses decreased, primarily driven by a release of a reserve associated with international non-income tax, a gain recognized in the current period for the remeasurement of our ownership interest in our Switzerland joint venture (Swisscard AECS GmbH) resulting from our purchase of the remaining share of the joint venture and gains on Amex Ventures investments, partially offset by higher technology costs and foreign-exchange related losses.
Current wording
Other expenses increased for the three month period and decreased for the six month period. The increase for the three month period was primarily driven by an increase in legal reserves and higher technology costs, partially offset by gains on Amex Ventures investments and a gain on the sale of a small business cobrand portfolio previously classified as Card balances HFS. The decrease for the six month period was primarily driven by gains on Amex Ventures investments, a release of a reserve associated with international non-income tax, a gain for the remeasurement of our ownership interest in our Switzerland joint venture (Swisscard AECS GmbH) resulting from our purchase of the remaining share of the joint venture and the previously-mentioned gain on the sale of a small business cobrand portfolio, partially offset by an increase in legal reserves and higher technology costs.
Previous wording
The effective tax rate was 21.4 percent and 22.4 percent for the three months ended March 31, 2026 and 2025, respectively. The decrease in the effective tax rate primarily reflected discrete tax benefits in the current period.
Current wording
The effective tax rate was 23.6 percent and 18.7 percent for the three months ended June 30, 2026 and 2025, respectively, and 22.5 percent and 20.5 percent for the six months ended June 30, 2026 and 2025, respectively. The higher effective tax rates for the three and six month periods primarily reflected discrete tax benefits in the prior periods related to the resolution of certain prior-year tax items.
Previous wording
Discount revenue increased 10 percent, primarily driven by an increase in U.S. consumer billed business. See Tables 5, 6, and 9 for more details on billed business performance.
Current wording
Discount revenue increased 11 percent and 10 percent for the three and six month periods, respectively, primarily driven by increases in U.S. consumer billed business. See Tables 5, 6, and 9 for more details on billed business performance.
Previous wording
Service fees and other revenue decreased 5 percent, primarily driven by a prior year discrete revenue adjustment related to certain cash advance fees, partially offset by higher travel commissions and fees from our consumer travel business.
Current wording
Service fees and other revenue increased 9 percent for the three month period and was relatively flat for the six month period, primarily driven by higher travel commissions and fees from our consumer travel business. The six month period was offset by a prior-year discrete revenue adjustment related to certain cash advance fees.
Previous wording
Provision for other credit losses decreased, primarily due to a lower reserve build in the current period, partially offset by higher net write-offs. The reserve build in the current period was primarily related to partner obligations. The reserve build in the prior period was primarily driven by a sequential increase in other loans outstanding.
Current wording
Provision for other credit losses decreased for the current three month period, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Provision for other credit losses decreased for the current six month period, primarily due to a lower reserve build in the current period, partially offset by higher net write-offs. The reserve build in the current six month period was primarily related to partner obligations, a portion of which was released during the current three month period. The net reserve builds in the prior periods were primarily driven by sequential increases in Other loans.
Previous wording
Total expenses increased, primarily driven by higher Card Member services, Card Member rewards and Salaries and employee benefits and other operating expenses.
Current wording
Total expenses increased for both the three and six month periods, primarily driven by higher Card Member services, Card Member rewards and Salaries and employee benefits and other operating expenses.
Previous wording
Card Member rewards expense increased, primarily driven by increases in Membership Rewards and cobrand rewards expenses, both of which were primarily driven by higher billed business.
Current wording
Card Member rewards expense increased for both the three and six month periods, primarily driven by increases in Membership Rewards and cobrand rewards expenses, both of which were driven by higher billed business. The increases in Membership Rewards expense were partially offset by the previously-mentioned benefit from enhancements to the U.S. URR models.
Previous wording
Business development expense increased, primarily due to increased partner payments driven by higher billed business.
Current wording
Business development expense increased for both the three and six month periods, primarily due to increased partner payments driven by higher billed business.
Previous wording
Card Member services expense increased, primarily due to new U.S. Platinum benefits and higher usage of Card Member benefits.
Current wording
Card Member services expense increased for both the three and six month periods, primarily due to new U.S. Platinum benefits and higher usage of Card Member benefits.
Previous wording
Discount revenue increased 3 percent, primarily driven by an increase in commercial billed business. See Tables 5, 6, and 11 for more details on billed business performance.
Current wording
Discount revenue increased 4 percent for both the three and six month periods, primarily driven by increases in commercial billed business. See Tables 5, 6, and 11 for more details on billed business performance.
Previous wording
Interest income increased, primarily driven by higher interest rates and growth in revolving loan balances.
Current wording
Interest income increased for both the three and six month periods, primarily driven by growth in revolving Card balances and higher interest rates.
Previous wording
Provision for other credit losses decreased, primarily due to a reserve release in the current period versus a reserve build in the prior period and lower net write-offs. The reserve release in the current period was primarily driven by the performance of small business loans. The reserve build in the prior period was primarily driven by a sequential increase in other loans outstanding.
Current wording
Provision for other credit losses decreased for both the three and six month periods, primarily due to a reserve release in the current period versus a reserve build in the prior period and lower net write-offs in the current six month period. The reserve release in the current three month period was primarily related to partner obligations. The reserve release in the current six month period was primarily driven by the performance of small business loans. The reserve builds in the prior periods were primarily driven by sequential increases in Other loans.
Previous wording
Card Member rewards expense increased, primarily driven by higher Membership Rewards expense due to changes to the Membership Rewards program for U.S. Business Platinum cards and higher billed business, as well as higher cobrand rewards expense driven by higher billed business.
Current wording
Card Member rewards expense increased for both the three and six month periods, primarily driven by increases in Membership Rewards expense due to changes to the Membership Rewards program for U.S. Business Platinum cards and higher billed business, partially offset by the previously-mentioned benefit from enhancements to the U.S. URR models.
Previous wording
Card Member services expense increased, primarily due to the new U.S. Business Platinum benefits.
Current wording
Card Member services expense increased for both the three and six month periods, primarily driven by the new U.S. Business Platinum benefits.
Previous wording
Discount revenue increased 18 percent (11 percent FX-adjusted), primarily reflecting an increase in billed business. See Tables 5, 6, and 13 for more details on billed business performance.2
Current wording
Discount revenue increased 12 percent and 15 percent for the three and six month periods, respectively (11 percent for both the three and six month periods, on an FX-adjusted basis), primarily driven by increases in billed business.2 See Tables 5, 6, and 13 for more details on billed business performance.
Previous wording
Service fees and other revenue increased, primarily driven by increases in foreign-exchange related revenues associated with Card Member cross-currency spending, network partnership revenue and loyalty coalition-related fees.
Current wording
Service fees and other revenue increased 3 percent and 12 percent for the three and six month periods, respectively (2 percent and 7 percent, respectively, on an FX-adjusted basis), primarily driven by higher loyalty coalition-related fees and increases in foreign-exchange related revenues associated with Card Member cross-currency spending, including such revenues from Swisscard.2
Previous wording
Interest expense increased, primarily driven by higher cost of funds due to segment net asset growth, partially offset by lower interest rates.
Current wording
Interest expense increased for both the three and six month periods, primarily driven by higher cost of funds due to segment net asset growth, partially offset by lower interest rates.
Previous wording
Provision for Card balance credit losses increased, primarily due to higher net write-offs, partially offset by a lower reserve build in the current period. The reserve builds in both periods were primarily driven by higher delinquencies.
Current wording
Provision for Card balance credit losses increased for the current three month period, primarily due to higher net write-offs, partially offset by a reserve release in the current period versus a reserve build in the prior period. Provision for Card balance credit losses increased for the current six month period, primarily due to higher net write-offs, partially offset by a lower reserve build in the current period. The reserve release in the current three month period was primarily driven by lower delinquencies, partially offset by a sequential increase in Card balances. The reserve build in the current six month period was primarily driven by a sequential increase in Card balances. The reserve build in the prior three month period was primarily driven by a sequential increase in Card balances. The reserve build in the prior six month period was primarily driven by higher delinquencies and a sequential increase in Card balances.
Previous wording
Card Member rewards expense increased, primarily driven by increases in Membership Rewards and cobrand rewards expenses, both of which were primarily driven by higher billed business.
Current wording
Card Member rewards expense increased for both the three and six month periods, primarily driven by increases in Membership Rewards and cobrand rewards expenses, both of which were primarily driven by higher billed business.
Previous wording
Business development expense decreased, primarily due to a reserve release related to the allocation of revenue to a joint venture partner as a result of the final arbitration award, partially offset by higher loyalty coalition-related costs.
Current wording
Business development expense decreased for both the three and six month periods, primarily driven by lower partner payments, partially offset by higher loyalty coalition-related costs. The decrease for the six month period was also driven by the previously-mentioned reserve release related to the allocation of revenue to a joint venture partner.
Previous wording
Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.
Current wording
Card Member services expense increased for both the three and six month periods, primarily driven by growth in premium card accounts, contributing to a higher usage of travel-related benefits.
Previous wording
Marketing expense increased, reflecting higher levels of spending on customer acquisition and other growth initiatives, including such expenses now included from Swisscard.
Current wording
Marketing expense increased for both the three and six month periods, primarily due to higher levels of spending on customer acquisition and other growth initiatives, including such expenses from Swisscard.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In 2025, the net cash used in investing activities was primarily driven by higher Card balances and Other loans, and the acquisition of a business.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Provision for other credit losses decreased, primarily due to a lower reserve build in the current period, partially offset by higher net write-offs. The reserve build in the current period was primarily related to partner obligations. The reserve build in the prior period was primarily driven by a sequential increase in other loans outstanding.
Previous report — wording carried elsewhere
Service fees and other revenue increased 9 percent, primarily driven by higher travel commissions and fees, delinquency fees and foreign-exchange related revenues associated with Card Member cross-currency spending.
Previous report — wording carried elsewhere
Business development expense increased, primarily due to increased partner payments driven by higher network volumes.