American Express Company

“We are a global payments and premium lifestyle brand powered by technology with four reportable operating segments: U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS).”

“To discount these cash flows we use our expected cost of equity, determined using a capital asset pricing model.”

“We offer a broad array of products and services to consumers, small businesses, mid-sized companies and large corporations”

“U.S. Consumer Services billed business grew 8 percent, with continued momentum in spending by Millennial and Gen-Z Card Members, our fastest-growing cohorts”

“Our range of products and services includes: •Credit and charge cards and complementary products and services •Banking and other payment and financing products and services, including deposits and non-card lending •Merchant acquisition and processing, servicing and settlement, fraud prevention •Network services”

“Total revenues net of interest expense$72,229$65,949$60,515$6,280 10 %”

“On January 12, 2026, we acquired our partner’s interest in our Switzerland joint venture (Swisscard AECS GmbH), resulting in Swisscard becoming a wholly owned subsidiary.”

“We believe Visa and Mastercard are larger than we are in most countries based on purchase volume.”

“a year ago, which included a $0.66 per share gain from the sale of Accertify Inc. (Accertify)”

“Long-term debt$56,387$49,715$47,866$6,672 13 %”

“We launched our refreshed U.S. Consumer and Business Platinum Cards at the end of the third quarter and have seen strong customer demand and engagement.”

“we expect the global minimum tax will continue to increase our tax liability in 2026 if it continues to be in effect in its current form.”

“Certain models, such as models used to estimate reserves for credit losses under Current Expected Credit Loss (CECL) and Membership Rewards liability, require us to make difficult, subjective and complex judgments”

“Legislators and regulators in the United States and other countries in which we operate are increasingly adopting or revising privacy, data protection, data management, resiliency, data transfer, third party oversight, account access, AI & ML and information security and cybersecurity laws, including data localization, authentication and notification laws.”

“we also have identified weaknesses in certain third parties’ processes and controls. Such disruptions, operational issues, control and process weaknesses or other events could interrupt or compromise the quality of our services to customers”

“A major information or cybersecurity incident could lead to reputational damage to our brand and material legal, regulatory and financial exposure”

“We could be exposed to an increased risk of goodwill impairment if future operating results or macroeconomic conditions differ significantly from management’s current assumptions.”

“The use of AI & ML technologies, including generative AI and agentic commerce, has increased rapidly and may be transformative to the payments industry”

“as a result of the Russian invasion of Ukraine, we exited our business operations in Russia and Belarus”

“such as recent legislation in the U.S. establishing a regulatory framework for stablecoins, or by imposing constraints on payment or financing mechanisms, such as proposals to cap credit card interest rates”

“minority investments in companies, such as GBTG, inherently involve a lesser degree of control over business operations”

“Jurisdictions may also make changes related to the tax treatment of card transactions, such as imposing taxes on Card Member rewards or prohibiting interchange fees on sales tax, which could decrease the value we provide to customers”

“we are also exposed to the risk that a service disruption at a service provider common to our third parties could impede their ability to provide services to us.”

“The market for qualified, highly motivated individuals with a range of perspectives is highly competitive and we may not be able to attract and retain such individuals.”

“given intellectual property ownership and license rights surrounding AI, such as generative AI, are currently not fully addressed by courts or regulators, we may not be able to protect our intellectual property rights against infringing use”

“We rely upon our colleagues not only for business success, but also to adhere to our Blue Box Values, which include acting with integrity, promoting a culture of respect and operating with a mindset of controls and risk management.”