What Q3 Earnings Reveal About the Credit Card Industry

As Q3 earnings season wraps up, credit card companies largely delivered solid results, supported by steady consumer spending and continued growth in digital payments. Across the six major credit card stocks we track, revenues beat analyst expectations by an average of 1.4%, and share prices are up 5.7% on average since earnings were released. Still, performance across the sector was uneven, with clear winners and a few laggards.

American Express (NYSE: AXP) reported revenue of $13.82B, up 10.8% year over year, exceeding expectations by 2.8%. Strong transaction volumes and resilient spending from its premium customer base drove the outperformance. American Express posted the largest beat versus analyst estimates among its peers, and the stock is up 10.9% since reporting, trading around $358.28.

The standout performer this quarter was Capital One (NYSE: COF). Revenue surged 54.4% year over year to $15.46B, beating expectations by 2.7%. The quarter was boosted by strong net interest margins and an EPS beat. Shares have climbed 6.3% since earnings and currently trade near $231.76.

Results were more mixed for Visa (NYSE: V). Revenue rose 11.5% year over year to $10.72B, slightly above expectations, but weaker performance in other operating areas weighed on investor sentiment. The stock is down 5.2% since reporting and trades around $329.35, making Visa the weakest performer of the group this quarter.

Mastercard (NYSE: MA) posted revenue of $8.60B, up 16.7% year over year, narrowly beating estimates. While profitability came in strong, transaction volumes missed expectations, leading to a modest pullback in the stock. Shares are down 1.6% since earnings and trade near $545.74.

Overall, Q3 was a solid quarter for the credit card industry, with Capital One and American Express leading on growth and execution, while Visa and Mastercard delivered steadier but less impressive results.