The Bull Case For American Express (AXP) Could Change Following $1.6 Billion Preferred Share Offering - Learn Why

• In early August 2026, American Express Company completed a US$1.60 billion fixed income offering of non‑convertible, non‑cumulative, perpetual preferred depository shares priced at US$1,000 each with a US$10 discount and callable features.
• This preferred issuance, alongside active brand partnerships such as its experiential presence at the 2026 US Open, highlights American Express’s twin focus on funding flexibility and deepening engagement with its premium cardmember base.
• With this sizeable preferred share offering expanding American Express’s capital resources, we’ll now examine how the deal reshapes its broader investment narrative.

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American Express Investment Narrative Recap

To own American Express, you need to believe its premium, experience-led model can keep attracting affluent spenders while digital and competitive threats evolve around it. The new US$1.60 billion perpetual preferred issue modestly strengthens funding flexibility, but does not materially change the near term story, where a key catalyst is continued premium card fee and spending momentum and a central risk is rising rewards and engagement costs pressuring margins.

The most relevant recent announcement alongside this deal is American Express’s reaffirmed 2026 guidance for 9% to 10% revenue growth and EPS of US$17.30 to US$17.90. Together with ongoing buybacks and regular dividends, this highlights active capital management around the core premium growth thesis, even as the biggest risk remains whether higher customer engagement and rewards spending eventually outpace revenue growth.

Yet investors should also be aware that rising rewards and servicing costs could eventually eat into the very margins that support Amex’s premium positioning...

Read the full narrative on American Express (it's free!)

American Express' narrative projects $95.1 billion revenue and $14.8 billion earnings by 2029.

Uncover how American Express' forecasts yield a $374.94 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were expecting revenue to reach about US$98.7 billion and earnings around US$16.3 billion by 2029, far above consensus, which shows how differently you and others might weigh the funding flexibility from this preferred issue against worries about structurally higher funding costs and how that could reshape future expectations.

Explore 6 other fair value estimates on American Express - why the stock might be worth 8% less than the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your American Express research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free American Express research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate American Express' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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