American Express reported revenue of $43.90 billion for the twelve months to Q3 2026, an increase of 8.9% over the prior year. This growth rate accelerated by 0.1 percentage points compared to the previous quarter. The filing highlights a divergence between reported earnings and cash generation, with net income rising while free cash flow declined.

What stands out

Net income increased 16.3% over the year, but free cash flow fell 26.6%.

Capital spending rose 69.1%, outpacing the 16.6% growth in operating cash flow. Consequently, a smaller portion of the cash generated remained after investment.

Growth and profit

The company generated net income of $12.26 billion over the twelve months, which rose 16.3% on the year before. This performance resulted in a trailing net margin of 27.9%.

Cash flow

Operating cash flow over the twelve months was $17.63 billion, down 16.6% on the year before. Capital spending reached $3.72 billion, representing 8.5% of revenue.

Free cash flow, defined as operating cash flow less capital spending, was $13.91 billion. This figure is down 26.6% on the year before. The free-cash-flow margin stood at 31.7% of revenue, a decrease of 15.3 percentage points from a year earlier.

The average diluted share count fell 2.5% over the year.

In context

Today’s free-cash-flow margin of 31.7% is higher than 55% of the company’s own past quarterly readings. Historical readings have ranged from 2.0% to 61.2%.

Today’s twelve-month revenue growth rate of 8.9% is higher than 80% of the company’s own past quarterly readings. These historical readings have ranged from −22.2% to 23.5%.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 26.0%. Conversely, growth 5 percentage points higher would raise the value by 33.8%.

A free-cash-flow margin 1 percentage point lower would lower the value by 3.3%.

What to watch

The next filing will show whether the gap between net income growth and free cash flow decline persists. It will also reveal if capital spending continues to outpace operating cash flow growth. Additionally, the report will indicate if the free-cash-flow margin stabilizes or continues to drift relative to historical ranges.