American Express management provided an updated outlook on September 16 at the Barclays Global Financial Services Conference. The outlook signaled potential headwinds for profitability.
The company raised its forecast for Variable Customer Engagement expenses. These expenses are now projected to be between 44% and 45% of total revenue. This increase reflects higher spending on cardmember rewards, retention, and acquisition efforts. This indicates near-term pressure on profit margins.
Executives confirmed no significant recovery in commercial billings growth. This trend is anticipated for the remainder of 2026.
A slowdown in commercial billings, combined with the higher expense outlook and broader macroeconomic concerns about rising interest rates, contributed to a decline in AXP's stock price. The stock fell by 3.7%. This occurred on September 16.