NEW YORK — Shares of American Express Co. climbed 2.41% to $334.04 in midday trading Monday, recovering some ground lost after the payments giant reported stronger-than-expected second-quarter results last week but kept its full-year profit outlook unchanged while signaling higher spending on growth.

The stock rose $7.87 as of 11:05 a.m. EDT on July 27, according to market data, following a roughly 6% drop on July 24 when investors focused on rising expenses and the company’s decision to reinvest first-half outperformance rather than boost near-term earnings guidance. American Express closed Friday at about $326.

On July 24, the New York-based company reported second-quarter net income of $3.1 billion, or $4.53 per diluted share, up 11% from $2.9 billion, or $4.08 per share, a year earlier. Revenue net of interest expense rose 10% to $19.6 billion. Both figures topped Wall Street expectations, with analysts looking for roughly $4.40 in earnings per share and slightly higher revenue.

Billed business, a key measure of card member spending, increased 9% to $455.8 billion, the strongest growth rate in three years on a foreign-exchange-adjusted basis. Net card fees climbed 15% to about $2.9 billion, marking the 32nd consecutive quarter of double-digit growth in that line. Provisions for credit losses fell to $1.1 billion from $1.4 billion a year earlier, reflecting a reserve release amid stable credit quality. The net write-off rate held at 2.0%.

Consolidated expenses, however, rose 12% to $14.5 billion, driven by higher variable customer engagement costs tied to increased spending, the U.S. Platinum Card refresh, greater use of card benefits, and elevated operating expenses. Management indicated marketing expenses would run about 10% higher in the second half of the year compared with the prior year.

American Express raised its full-year 2026 revenue growth guidance to 10% from a previous range of 9% to 10%. It reaffirmed earnings-per-share guidance of $17.30 to $17.90. For the first six months of 2026, revenue net of interest expense rose 11% to $38.5 billion, and diluted earnings per share increased 14% to $8.81.

Chairman and Chief Executive Officer Stephen J. Squeri described the quarter as another strong performance. “We had another excellent quarter, with 10 percent revenue growth, EPS of $4.53, and Card Member spending growth of 9 percent, the highest rate we’ve seen in three years on an FX-adjusted basis,” Squeri said in the company’s earnings release. “Based on our better-than-expected performance in the first half of the year, we are raising our full-year revenue growth guidance to 10 percent and plan to reinvest this outperformance in growth initiatives given the significant opportunities we see ahead. We continue to expect full-year EPS of $17.30 to $17.90.”

He added: “Six months into the year, we’re seeing stronger momentum than we expected. The investments we made in our value propositions have driven accelerated spend and revenue growth; our Platinum portfolio is now the fastest growing in our U.S. Consumer business; our best-in-class credit performance further strengthened; and we continued to attract a large number of new customers, particularly Millennials and Gen-Zs who represent greater lifetime value.”

On the earnings call, Squeri addressed why the company chose not to raise the profit outlook despite the revenue lift. “We have a choice, we can either drop the overperformance to the bottom line and buy back more shares, or we can invest to grow the business,” he told analysts. “We’ve chosen the latter because, in the long run, it is the one that creates the most value for our shareholders.”

The company added about 3 million new cards in the quarter. More than 70% of new accounts acquired year-to-date were on fee-based products, with the proportion reaching about 75% in the second quarter—the highest level since the intensified focus on premium offerings. U.S. consumer services revenue rose 11%, commercial services 7%, and international card services 12%. Travel and entertainment spending grew 10%, with restaurants, hotels, and airlines contributing. Travel bookings jumped 22%.

American Express returned roughly $2.9 billion to shareholders in the quarter through share repurchases and dividends. It bought back about 7 million shares for $2.2 billion and paid $600 million in dividends. The Common Equity Tier 1 capital ratio stood at 10.4%, and return on average equity reached 36.4% for the quarter.

The company also highlighted strategic moves. It announced a proposed acquisition of TheFork, a European restaurant booking platform with about 50,000 restaurants across 11 countries, for roughly $700 million. It expanded partnerships, including a global deal with ALL Accor, became the official payments partner of Fanatics at select locations, enabled Membership Rewards points redemption for Apple Pay checkouts by U.S. card members, and introduced new travel benefits for Delta SkyMiles cardholders. It also piloted a new expense management platform for middle-market commercial customers.

Chief Financial Officer Christophe Le Caillec noted the company plans to reinvest overperformance into marketing and growth to support and accelerate momentum. Credit metrics remained solid, with delinquency and write-off rates still below 2019 levels. Executives said they saw no broad slowdown in spending among their premium customer base despite economic uncertainty, though middle-market commercial activity showed some softness while small business and large corporate remained stronger.

Analysts and investors initially reacted to the expense growth and flat profit guidance with selling pressure. Shares fell more than 6% on the results day as the market weighed higher near-term costs against the raised revenue outlook and robust spending trends among affluent cardholders. Monday’s rebound suggested some investors were looking past the short-term margin pressure toward the company’s longer-term strategy of refreshing premium products, acquiring higher-value younger customers, and expanding its ecosystem of benefits and partnerships.

American Express has emphasized its Membership Model centered on premium products, differentiated services, and partnerships. The U.S. Platinum Card refresh has driven engagement and spend consolidation among existing members. Net interest income rose 11% on higher card balances, though portfolio sales created a modest headwind. The effective tax rate was 23.6%, up from 18.7% a year earlier due to prior-year discrete benefits.

Looking ahead, management expects card fee growth to accelerate in the third quarter and exit the year in the high teens. The company continues to invest in technology, including AI capabilities for internal efficiency and customer experiences, and remains open to additional investment opportunities. Squeri has described the current environment as still early for transformative AI impacts, likening it to the “preseason.”

The stock’s 52-week range has run from about $288 to $387. Market capitalization stood near $223 billion following Friday’s close. Dividend yield hovered around 1.1%, with a recent quarterly dividend of 95 cents per share.

American Express’s results underscore resilience in premium consumer spending on travel, dining, and entertainment even as broader economic signals remain mixed. By choosing to reinvest rather than maximize near-term profits, the company is betting that sustained investment in its value propositions, customer acquisition—especially among Millennials and Gen Z—and ecosystem partnerships will deliver stronger long-term returns. Monday’s share price recovery indicated that at least some market participants were beginning to price in that longer view after digesting the details of the quarterly report.