4 Reasons American Express Stock Is Having Its Worst Year Since 2015 Despite Record Earnings

American Express (AXP) has delivered impressive third-quarter 2026 results, projecting a record $18.30 to $18.60 in full-year earnings per share and another year of 10% revenue growth. However, despite these strong numbers, the stock is down 15.3% year to date, marking its worst annual decline since 2015. Here are four reasons behind American Express's underperformance in 2026:

1. Outpacing Earnings Growth: American Express has had a near-decade long surging stock price that outpaced earnings growth, leading to a pullback in 2026.

2. Rising Expenses and Eroding Margins: The company's expenses, including card member reward expenses, business development, and card member services, have increased significantly, causing a strain on its gross margins.

3. Potential Impact of Inflation and Changing Consumer Spending: As consumer spending may be impacted by inflation, the cost of living, and higher interest rates, it could affect American Express's core customer base and their annual fees.

4. AI Strategy and Its Potential Impact on Margins: American Express's ambitious AI strategy, aiming to leverage efficiency improvements and agentic commerce, could threaten the company's margins by diverting resources away from other areas. Additionally, the company had a $336 million restructuring charge in Q3, reducing its global employee headcount by 5%.