American Express, the second-largest holding in Berkshire Hathaway's portfolio after Apple, continues to deliver strong results as its stock trades near record highs. Revenue rose 11% to about $18.9 billion in the first quarter of 2026, with earnings per share up 18% and billed business climbing 10%, driven by Millennial and Gen Z cardholders who now represent the fastest-growing segment. Credit quality remains solid, with a net write-off rate of about 1.9% on U.S. consumer card balances, below pre-pandemic levels. The stock trades at a price-to-earnings ratio of about 22, above its historical mid-teens multiple, but management expects earnings per share to grow about 15% this year, supported by fee-paying account growth and share buybacks. While the bargain days may be over, the company's premium model and spending momentum could still reward patient investors.
American Express CompanyRevenue and billed business growth driven by Millennial/Gen Z cardholders, indicating strong end-customer demand.
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