Beta Finch - S&P 100 - EN

More earnings analysis: https://betafinch.com
Groups: RETAIL (https://betafinch.com/groups/RETAIL)
──────────
**BETA FINCH PODCAST SCRIPT**

---

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and I'm joined by my co-host Jordan. Today we're diving into Booking Holdings' fourth quarter earnings call - and wow, what a quarter they had.

Before we get started though, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: Thanks Alex. And speaking of wow - Glenn Fogel just celebrated his 26th year at the company! That might make him the longest-tenured executive in tech. But beyond that milestone, Booking absolutely crushed their fourth quarter numbers.

**ALEX**: Let's break down those numbers, Jordan. Room nights hit 285 million - that's a 9% year-over-year increase that actually exceeded the high end of their expectations. And both gross bookings and revenue jumped 16%. What's driving this growth?

**JORDAN**: The strength is really coming from Asia and the U.S., both delivering low double-digit growth. What I found interesting is that the U.S. acceleration has been building all year - they went from low single-digit growth in the first half to low double-digit growth in Q4. That's a pretty impressive turnaround.

**ALEX**: And the profitability story is even better. Adjusted EBITDA reached $2.2 billion, up 19% year-over-year, with margins expanding 80 basis points to nearly 37%. A big driver here is their transformation program that launched in late 2024.

**JORDAN**: Right, and this transformation program is fascinating. They've already achieved $550 million in annual run-rate savings - hitting the high end of their guidance. CFO Ewout Steenbergen said they expect $500 to $550 million in additional in-year savings for 2026. That's serious operational efficiency.

**ALEX**: But here's what I love about their strategy - they're not just pocketing those savings. They're reinvesting about $700 million above baseline into strategic priorities like AI, their connected trip vision, and geographic expansion. It's classic reinvestment for growth.

**JORDAN**: Speaking of AI, Glenn Fogel had some really compelling commentary on this. He talked about how they've been using AI for over a decade, but now with generative AI, they're rolling out what he calls "agentic capabilities" across their platforms. And unlike a lot of companies that talk about AI but don't show results, Booking is actually seeing it in their P&L.

**ALEX**: That's a great point. Steenbergen specifically called out how their customer service costs are actually down year-over-year despite 10% booking growth. That's a roughly 10% decline in customer service cost per booking - real, measurable AI impact.

**JORDAN**: Now let's talk about their competitive moat, because there was a really interesting exchange about large language models potentially disrupting travel booking. An analyst asked about companies like ChatGPT potentially becoming travel agents.

**ALEX**: And Fogel's response was brilliant. He basically said - good luck with that! He pointed out that Booking works with over 4 million properties, processes 100+ payment methods across 50+ currencies, deals with regulations across 200+ countries, and has thousands of partner service people. That's not something you just replicate overnight.

**JORDAN**: Exactly. He compared it to their relationship with Google - Google captures demand at the top of the funnel through search, Booking handles the complex backend of actually completing transactions. Both companies have thrived in that relationship, and he sees a similar dynamic potentially playing out with AI companies.

**ALEX**: Let's touch on their loyalty program, Genius, because the numbers there a

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: INDUSTRIALS (https://betafinch.com/groups/INDUSTRIALS)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown, where we take the transcripts so you don't have to. I'm Alex, joined as always by Jordan. Today we're digging into Boeing's second quarter 2026 results, and Jordan, there's a lot going on here — good and bad.

JORDAN: Yeah, this one's a real mixed bag. Before we get into it though —

ALEX: Right, our standard disclaimer: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Good, glad that's out of the way. So Alex, let's start with the headline numbers, because there's genuinely some good news here.

ALEX: There is. Revenue came in at $24.6 billion, up 8% year over year, and CEO Kelly Ortberg said they delivered 171 airplanes in the quarter — the highest total since 2018. That's a big deal for a company that's spent years trying to prove it can actually build planes reliably.

JORDAN: And it's not just noise — operating margin improved to positive 0.6% for the company overall, and free cash flow was positive $631 million, which actually beat what CFO Jay Malave had guided to last quarter. They're still tracking toward that full-year free cash flow target of $1 to $3 billion.

ALEX: But — and there's always a "but" with Boeing lately — there was a $280 million charge this quarter tied to the VC-25B program. That's the new Air Force One.

JORDAN: Right, and this is one of those fixed-price development contracts that's been a headache for Boeing for years. They're adding resources to keep the build and test schedule on track, and they even shifted from an FAA certification basis to a military one. It's a bet-the-schedule move — spend more now to protect the 2028 delivery commitment.

ALEX: Which, credit to them, is at least transparent. Ortberg didn't try to spin it — he flat out said "the charge is disappointing."

JORDAN: I appreciated that. It fits the broader tone of this call, honestly — a lot of "we're not out of the woods, but we're in much better shape than two years ago."

ALEX: Let's talk about the certification wins, because that's really the story of this quarter. The FAA authorized Boeing to resume issuing airworthiness certificates for all 737 MAX and 787 aircraft — that's a trust milestone after years of extra regulatory scrutiny.

JORDAN: And on top of that, testing wrapped on the 737-7, with certification expected very soon, and the 737-10 just completed its final test flight. Both variants are now on track to start deliveries in 2027.

ALEX: Meanwhile the 777X — the widebody everyone's been waiting on — is over 55% through certification flight testing, still targeting first delivery in 2027. Ortberg made a point of saying that number sounds low but it's actually tracking well since a lot of pre-work was already done.

JORDAN: The production rate story is the other big thread. Boeing's ramping 737 to 47 a month, with a new production line coming online in Everett to eventually hit 52 a month. And on the 787 side, they've stabilized at 8 a month in Charleston, though they did pause production for a few days in April to let the supply chain catch up.

ALEX: That engine issue with GE came up a lot in the Q&A actually. One analyst basically called it out directly — GE says there's no problem, but Boeing's clearly working through an engine delivery shortfall.

JORDAN: Ortberg handled that pretty carefully. He said Boeing's fallen behind on 787 engine deliveries and they've got a recovery plan in place with GE, and that it matters a lot for hitting the Rate 10 target. Diplomatic, but you could read between the lines that it's a real constraint right now.

ALEX: Let's hit defense and services quickly, because they don't get as much

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: INDUSTRIALS (https://betafinch.com/groups/INDUSTRIALS)
──────────
# Beta Finch Podcast Script: Boeing Q1 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we dive deep into the quarterly results that are moving markets. I'm Alex, and I'm joined as always by my co-host Jordan. Today we're unpacking Boeing's first quarter 2026 earnings, and folks, this is a company that's been through quite a journey over the past few years.

Before we get started, I need to share an important disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks Alex. And what a quarter this was for Boeing. We're seeing some real signs of stability and momentum building across their business segments. The headline numbers tell a compelling story - revenue jumped 14% to $22.2 billion, which is solid growth across all three of their main divisions.

**ALEX:** That's right, and while they're still posting a core loss of 20 cents per share, that's actually an improvement from last year. What really caught my attention was CEO Kelly Ortberg's tone - he seems genuinely optimistic about where they're headed. He said they're "off to a really good start and headed in the right direction."

**JORDAN:** Absolutely, and let's talk about what's driving that optimism. The production story is fascinating here. They've stabilized 737 production at 42 aircraft per month, and they're planning to ramp up to 47 per month this summer. But here's what's really interesting - they delivered the final 737 MAX from their "shadow factory" inventory in Q1. That's significant because it means they're finally clearing out the backlog of aircraft built during the production halt.

**ALEX:** That's huge, Jordan. And speaking of production, they're bringing online a fourth 737 production line - the "North Line" in Everett. This is part of their plan to eventually reach 52 aircraft per month. What struck me was how methodical they're being about this ramp-up. They're moving experienced workers from their stable Renton facility to train new employees at Everett.

**JORDAN:** Smart approach, especially given their quality focus. They mentioned a 20% reduction in final assembly rework hours compared to last year - that's the kind of operational improvement that builds confidence. But let's address the elephant in the room - the Middle East conflict and its potential impact.

**ALEX:** Right, this came up several times during the Q&A. Ortberg was pretty clear that they haven't seen any delivery deferrals yet, and they actually delivered four aircraft to Middle East customers during the quarter. But he acknowledged they're watching fuel prices closely, since higher jet fuel costs could impact airline operations and aftermarket demand.

**JORDAN:** What's interesting is how Boeing is positioned if defense spending increases due to the conflict. Ortberg highlighted that their defense platforms - the Apache helicopter, Patriot missile systems, F-15EX fighters - are all seeing increased demand. He mentioned seeing potential upside in their five-year defense outlook compared to what they planned last year.

**ALEX:** Let's dig into those segment numbers. Commercial Airplanes had revenue of $9.2 billion, up 13%, though they're still posting negative margins. Defense, Space & Security grew 21% to $7.6 billion with a 3.1% operating margin. And Global Services - their most profitable segment - delivered $5.4 billion in revenue with an impressive 18.1% operating margin.

**JORDAN:** Those Global Services numbers are really solid. They booked $8 billion in new orders with a book-to-bill ratio of 1.6, and their backlog hit a record $33 billion. This is the steady, cash-generating business th

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: INDUSTRIALS (https://betafinch.com/groups/INDUSTRIALS)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and joining me as always is Jordan. Today we're diving into Boeing's Q4 2025 earnings, which just dropped, and wow – there's a lot to unpack here.

JORDAN: There really is, Alex. But before we get into the nitty-gritty, I need to share our standard disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

ALEX: Absolutely. Now Jordan, let's start with the headline numbers because they're actually pretty impressive on the surface.

JORDAN: They really are! Boeing reported $23.9 billion in quarterly revenue – and get this – that's their highest quarterly total since 2018. Revenue was up a massive 57% year-over-year. For the full year, they hit $89.5 billion, up 34%.

ALEX: That's a significant turnaround. What's driving those numbers?

JORDAN: It's really a combination of higher commercial deliveries and better operational performance across the board. They delivered 600 commercial aircraft for the year – again, the most since 2018. The 737 MAX program delivered 447 planes, while the 787 contributed 88 deliveries.

ALEX: Now, the earnings picture gets a bit more complex, right? Because there's this big one-time gain in there.

JORDAN: Exactly. Core earnings per share came in at $9.92, but here's the thing – $11.83 of that was from selling their Digital Aviation Solutions business for about $10.6 billion. Strip that out, and you're looking at underlying operations that are still losing money, but improving significantly from the prior year.

ALEX: Let's talk about what CEO Kelly Ortberg had to say about their turnaround plan. He seems cautiously optimistic but realistic about the challenges ahead.

JORDAN: I thought his tone was really measured. He said "we haven't fully turned the corner, but we're making real progress." That feels honest – they're not overselling the recovery. He highlighted their four-point plan: stabilize the business, execute on development programs, change the culture, and build for the future.

ALEX: Speaking of those development programs, there's some movement on the certification front for their delayed aircraft, right?

JORDAN: Yes, but it's a mixed bag. The 737-10 got approval for its final phase of certification flight testing, which is progress. They still expect both the 737-7 and 737-10 to get certified in 2026. For the 777X, they're sticking with first delivery in 2027, though they did mention a potential engine durability issue they're working through with GE.

ALEX: Now let's get to what investors are probably most interested in – the cash flow situation. This has been Boeing's Achilles' heel for years.

JORDAN: This is where it gets really interesting. They generated positive free cash flow of $375 million in Q4 and used $1.9 billion for the full year – but that was actually better than expected. More importantly, CFO Jay Mollave guided to positive free cash flow of $1 billion to $3 billion for 2026.

ALEX: But there are a lot of moving parts affecting that cash flow, aren't there?

JORDAN: Oh absolutely. Mollave walked through what he called "legacy issues" that are weighing on cash flow. The biggest one is the 777X program, which won't start delivering until 2027, so they're spending cash to build planes but not getting the full payment from customers yet. He said that program alone will be a higher cash use in 2026 than 2025.

ALEX: And then there are these "customer considerations" – essentially compensation for past delivery delays.

JORDAN: Right, and "excess advances" where they've already taken customer cash for planes they haven't delivered yet. These are both legacies of the production p

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: BANKS (https://betafinch.com/groups/BANKS)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. Today we're digging into Bank of America's second quarter 2026 results, and there's a lot to unpack.

Before we get into the numbers — this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Alright, let's get into it, because BAC put up some genuinely strong numbers this quarter.

ALEX: Yeah, headline stats first — revenue grew 15% year-over-year to $31.6 billion. Net income came in at $9.1 billion, up 27%. And EPS jumped 34% to $1.21 a share.

JORDAN: What stood out to me is that every single business segment contributed to that growth — revenue up, net income up, operating leverage positive, efficiency ratio improved. That's not one hot business carrying the quarter, that's the whole franchise firing.

ALEX: Right, and CEO Brian Moynihan leaned into that on the call — 6.6% operating leverage for the quarter, efficiency ratio down to 59%, return on tangible common equity at 17%.

JORDAN: Let's talk about net interest income, because that's really the engine here. NII came in around $16.2 billion, up 9% year-over-year. CFO Alastair Borthwick has basically been raising guidance all year — started at 5-7% NII growth for the full year, bumped it to 6-8% in April, and now they're saying they'll land at the top end of that range.

ALEX: And that's even with one rate hike priced into the forward curve for September. The bank is asset-sensitive, so higher rates actually help them here.

JORDAN: The fee businesses were the real fireworks though. Investment banking fees up 50% year-over-year to $2.1 billion. Sales and trading revenue up 33% to $7.2 billion. And within that, equities hit a record $3.6 billion, up 70%, while FICC had its best quarter in over a decade.

ALEX: Seventeen consecutive quarters of year-over-year sales and trading growth. Fourteen consecutive quarters of net income growth in that segment. That's a streak.

JORDAN: On the balance sheet side — deposits grew for a 12th straight quarter, averaging just over $2 trillion. Loans grew for a ninth consecutive quarter, up 8% year-over-year, led by commercial lending. And credit quality stayed stable — charge-offs basically flat versus Q1, consumer card delinquencies actually improving.

ALEX: They also raised their full-year operating leverage guidance pretty dramatically — from an expected 200 basis points at the start of the year to now 300-400 basis points, after putting up 450 in the first half alone.

JORDAN: Management was careful to flag that the second half comps get tougher, since last year's growth was heavily back-half-loaded. So don't expect the same blowout pace, even though the underlying business is healthy.

ALEX: The other big theme was AI. They dedicated a whole new slide to it — over 200,000 employees actively using AI tools, more than 400,000 prompts a day, 300-plus approved AI use cases, 114 of those live.

JORDAN: Moynihan framed it as helping in two ways — one, it's driving revenue indirectly because BAC is financing a lot of the AI infrastructure buildout happening across the economy. And two, internally, it's a productivity lever — helping bankers prep faster, developers code more efficiently, advisors personalize client conversations.

ALEX: One analyst question I found interesting — Erika Najarian from UBS pushed on whether the NII guidance was actually conservative, and whether returns this strong might tempt the bank into chasing lower-return business for growth.

JORDAN: Moynihan's answer was pretty disciplined — he said they still hold every business to that roughly 16% return on tangible common equity standard, and any capital reallocation goes toward higher-return

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: BANKS (https://betafinch.com/groups/BANKS)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex.

JORDAN: And I'm Jordan. Today we're diving into Bank of America's Q1 2026 results, and folks, this was a pretty impressive quarter.

ALEX: Before we jump in, I need to share our mandatory disclaimer - this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Absolutely. Now, let's talk Bank of America. Alex, the numbers were genuinely strong across the board here.

ALEX: They really were, Jordan. Revenue jumped 7% year-over-year to $30.3 billion, and earnings per share surged 25% to $1.11. But what caught my attention was that every single business segment contributed to growth - revenue, earnings, deposits, loans. That's the kind of diversified performance you love to see from a major bank.

JORDAN: And let's talk about that operating leverage - 290 basis points! For those keeping score at home, that means their revenue is growing much faster than their expenses. Their efficiency ratio improved from 63% to 61%, and they hit a 16% return on tangible common equity.

ALEX: Speaking of efficiency, there was this fascinating discussion about headcount. CEO Brian Moynihan mentioned they're down about 1,070 people from year-end 2025, but here's the kicker - they actually have fewer employees today than they did back in 2007, despite being a much larger company now.

JORDAN: That's the power of technology and AI at work. Moynihan talked about having 90 different AI installations running across the company, with all 200,000 employees having access to AI tools. Their virtual assistant Erica is just the tip of the iceberg.

ALEX: Let's dig into the business lines. Net interest income was a real standout - $15.9 billion on a fully taxable equivalent basis, up 9% year-over-year. And here's the big news: they actually raised their full-year NII guidance to 6% to 8% growth, up from their previous expectations.

JORDAN: That guidance increase is significant, Alex. CFO Alastair Borthwick attributed it to better balance sheet optimization, more favorable rate conditions, and the fact that the market now expects zero Fed rate cuts this year instead of the two cuts previously anticipated.

ALEX: The consumer banking segment was particularly strong - net income up 21% year-over-year to $3.1 billion. They added over 100,000 net new checking accounts and now have a record 38.5 million consumer checking accounts. Plus, 79% of households are digitally active.

JORDAN: And their wealth management business hit a record first quarter revenue of $6.7 billion, with net income up 32% year-over-year. Client balances reached $4.6 trillion. Those are some serious numbers.

ALEX: Now, there was an interesting discussion about credit quality. One analyst asked about their reserving approach, noting that Bank of America tends to have lower reserve ratios than peers. Borthwick pushed back, saying it reflects their higher-quality loan portfolio and more conservative client selection.

JORDAN: Right, and the credit metrics support that view. Net charge-offs, card delinquencies, and nonperforming loans all declined versus Q1 2025. They've been the lowest loss rate in Federal Reserve stress tests for 13 of the last 14 years.

ALEX: There was also discussion about their Global Markets lending business. Some investors have been nervous about exposure to private credit markets, but Borthwick emphasized they haven't experienced material losses and have structural protections in place.

JORDAN: The trading revenues were particularly impressive - up 12% year-over-year to $6.3 billion, with equities having their best quarter ever, up 30%. Investment banking fees grew 21% year-over-year, driv

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: BANKS (https://betafinch.com/groups/BANKS)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex.

JORDAN: And I'm Jordan. Today we're diving into Bank of America's Q4 2025 results, which came out this morning with some pretty solid numbers.

ALEX: Before we get started, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Absolutely. Now, let's talk about these results. Bank of America delivered $7.6 billion in net income for Q4, which is up 12% year-over-year. Earnings per share came in at 98 cents, up a whopping 18% from last year.

ALEX: That's a strong finish to 2025. What really caught my attention was the revenue growth - 7% year-over-year, led by net interest income jumping 10% to $15.9 billion. And get this - they delivered 330 basis points of operating leverage in the quarter.

JORDAN: Operating leverage is really the name of the game for banks right now, and Bank of America seems to be executing well on that front. CEO Brian Moynihan highlighted that they kept headcount flat across the entire year despite growing client activity and volumes. That's impressive discipline.

ALEX: Let's break down some of the key drivers. Loan growth was robust at 8% year-over-year, and deposits grew 3%. Both of those outpaced industry averages. What's interesting is they're seeing growth across all their business segments.

JORDAN: Right, and looking at the deposit story - this has been a challenge across the industry post-pandemic. But Bank of America actually added 680,000 new consumer checking accounts during the year while maintaining an average balance of over $9,000. That's 28 consecutive quarters of net growth, or seven straight years.

ALEX: That's remarkable consistency. Now, let's talk about their outlook because this is where it gets really interesting. CFO Alastair Borthwick reiterated their guidance for 5% to 7% net interest income growth in 2026.

JORDAN: And here's why that's significant - they have about $12 to $15 billion in mortgage-backed securities and mortgage loans rolling off each quarter in 2026. These will be replaced with new assets yielding 150 to 200 basis points higher. That's essentially free money dropping to the bottom line.

ALEX: The asset repricing story is huge for Bank of America. They've been positioned for rising rates, but even in a declining rate environment, they're benefiting from this roll-off dynamic. Speaking of rates, how are they thinking about sensitivity?

JORDAN: Good question. They said that if rates dropped another 100 basis points instantly, NII would decline by about $2 billion over 12 months. But if rates went up 100 basis points, they'd benefit by around $700 million. So they're still somewhat asset-sensitive, but much less than before.

ALEX: Let's talk about their business segments. Consumer Banking continues to be a profit machine with a 28% return on allocated capital and what looks like around a 50% profit margin.

JORDAN: And Wealth Management is really hitting its stride. Net income grew from $1 billion in Q2 to $1.4 billion in Q4, with the return on allocated capital jumping from 20% to 28%. They added $500 billion in client balances across the year to reach $4.8 trillion total.

ALEX: Global Markets had another strong quarter too - their 15th consecutive quarter of improvement in sales and trading, generating nearly $21 billion in revenue for the full year. That's a record.

JORDAN: What I found fascinating in the Q&A was the discussion around technology and AI investments. Moynihan mentioned they have 18,000 people coding at the company, and AI has already taken 30% out of the coding process, saving them about 2,000 people equivalent in productivity.

ALEX

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. Today we're digging into American Express's Q2 2026 results, and Jordan, this one's got some real strategic meat on the bone.

JORDAN: It really does. Before we get into it, though — this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

ALEX: Right, so let's get into the numbers. Amex posted 10% revenue growth this quarter and EPS of $4.53, up 11% year-over-year. Pre-tax income was up 15%. And here's the interesting part — they're actually raising full-year revenue guidance to 10% growth, but keeping EPS guidance steady at $17.30 to $17.90.

JORDAN: That's the part that jumps out at me. Normally when a company beats expectations, you'd think they'd flow that straight to EPS. But CEO Steve Squeri was pretty direct about it — he said, essentially, "we have a choice: drop the overperformance to the bottom line, or reinvest it." And they're choosing to reinvest.

ALEX: Which tells you something about how confident they are in their growth pipeline. Where's the money going?

JORDAN: Mainly three places — customer acquisition, technology investment, and this proposed acquisition of TheFork, a European restaurant booking platform that would add 50,000 restaurants across 11 countries to their dining network. That one wasn't even in the original 2026 plan.

ALEX: Right, and TheFork fits into this bigger dining ecosystem play — they already own Resy and Tock. Squeri made an interesting point on the call: they don't evaluate these platforms on a standalone P&L basis. It's not about Resy or Tock making money directly — it's about what he called "closed loops within our closed loop." Card members get better restaurant access, and it becomes a cheaper acquisition channel since non-card-members use these platforms too.

JORDAN: And the data backs it up — spend at Resy restaurants is double that of average, and card members have higher ticket prices across the board. That's the flywheel Squeri kept coming back to.

ALEX: Let's talk about the real engine here, though: the Platinum Card refresh. This has been running for about a year now, and it's paying off in a big way.

JORDAN: Big time. U.S. consumer spending was up 11.4% — the highest growth rate since Q1 2018, excluding pandemic distortions. And CFO Christophe Le Caillec pointed out that Platinum is now the fastest-growing portfolio in their U.S. consumer business. It's coming from three places: new account acquisition, existing cardholders spending more, and people upgrading from other cards into Platinum.

ALEX: There's a really telling stat in there too — 65% of new U.S. consumer accounts are coming from Millennials and Gen Z. And internationally it's similar, around 70%. This isn't a legacy-customer story anymore.

JORDAN: No, and that matters for durability. Squeri made this point when asked about long-term valuation — he's been at Amex 41 years, so he's seen a few cycles — and his answer was basically: the company used to think of its premium customer as one specific demographic cohort. Now they've built a flywheel that can adapt to whichever generation is coming up next. That's a meaningfully different growth algorithm than the one they had a decade ago.

ALEX: Now, on the credit side — this is where it gets almost boringly good, in a good way. Delinquency rates have held between 1.2% and 1.3% for over three years. Both delinquency and write-off rates remain below 2019 levels.

JORDAN: And the stress test results reinforce that. In the Fed's CCAR severely-adverse scenario, Amex posted the lowest projected credit card loss rate of any bank tested, with a positive pre-tax ROE over nine quarters. That's the payoff of chasing a more premium, more creditworthy customer

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
──────────
# Beta Finch Podcast Script: American Express Q1 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we dive deep into the numbers that move markets. I'm Alex, and I'm here with my co-host Jordan to break down American Express's first quarter 2026 results. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks Alex! And wow, what a quarter for Amex. They came out swinging with some impressive numbers that really caught my attention.

**ALEX:** Absolutely, Jordan. Let's start with the headline figures. Revenue jumped 11% year-over-year, or 10% on an FX-adjusted basis. But here's what really stands out - earnings per share of $4.28, up 18% from the prior year. That's some serious momentum.

**JORDAN:** What's particularly striking to me is the spending growth. Card member spending was up 10% - and Alex, this is their highest quarterly growth in three years. That's not just a good number, that's a statement about the strength of their premium customer base.

**ALEX:** Exactly. And speaking of premium customers, the Platinum card refresh is really paying dividends. CEO Stephen Squeri mentioned they're seeing accelerated spend growth from that portfolio while maintaining high retention rates even after fee increases. That's the holy grail in the credit card business - raising prices and keeping customers happy.

**JORDAN:** The international business deserves a callout too. Twenty consecutive quarters of double-digit growth on an FX-adjusted basis. That's consistency you don't see very often. And here's something interesting - over 70% of new accounts globally are fee-paying products. They're not just growing, they're growing profitably.

**ALEX:** Now Jordan, let's talk about some of the strategic moves. The NFL partnership announcement really caught my eye. Starting in 2026, American Express becomes the league's official payments partner. Given the NFL's international expansion plans, this could be huge for Amex's global reach.

**JORDAN:** That's smart positioning, Alex. But what really excites me is their commercial business expansion. They announced a roadmap for eight new or enhanced products for businesses - the biggest commercial product expansion in company history. The new Graphite Business Cash Unlimited card and expense management software could be game-changers in the B2B space.

**ALEX:** And we can't ignore the AI story. The ACE Developer Kit - Amex Agentic Commerce Experiences - is fascinating. They're positioning themselves at the forefront of AI-powered transactions with what they call "Amex Agent Purchase Protection."

**JORDAN:** Right, and Squeri made a compelling case during the Q&A about why their closed-loop network gives them an advantage in this space. He said "data is king" in the agentic world, and Amex has end-to-end transaction visibility that their competitors lack. That could be a significant moat.

**ALEX:** Let's dig into some of the more granular details. Luxury retail spending was up 18% - that's a clear indicator their affluent customer base is still spending freely. Restaurant spending up 20%, lodging on their premium hotel programs up 50%. These aren't just numbers, they're showing real engagement with Amex's value proposition.

**JORDAN:** And the credit quality remains pristine. Both delinquency and write-off rates are still below 2019 levels. CFO Christophe Le Caillec mentioned write-off dollars are only up 4% year-over-year while net interest income is growing at double-digit pace. That's impressive risk management.

**ALEX:** Now, one thing that stood out in the Q&A was the discussion about younger customers. There was a question about whether millennials and Gen Z would be more s

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
──────────
**Beta Finch Podcast Script: American Express Q4 2025 Earnings**

---

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex.

**JORDAN**: And I'm Jordan. Today we're diving into American Express's fourth quarter 2025 results, which dropped some pretty impressive numbers this morning.

**ALEX**: Before we jump in, just a quick reminder - this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: So Alex, let's start with the headline numbers because American Express really delivered here.

**ALEX**: Absolutely. They posted record full-year revenues of $72 billion - that's up 10% year-over-year. Earnings per share came in at $15.38, which represents 15% growth excluding some gains. And here's what I found particularly striking - they're guiding for 2026 revenue growth of 9% to 10% with EPS between $17.30 and $17.90.

**JORDAN**: That guidance is solid, but what really caught my attention was their card fee growth. Jordan, they hit a record $10 billion in net card fees for the year, growing at 18%. That's thirty consecutive quarters of double-digit card fee growth. That's the kind of consistency that makes CFOs everywhere jealous.

**ALEX**: And it's not just about the numbers - it's about what's driving them. CEO Stephen Squeri talked extensively about their "investment philosophy," and I think this is key to understanding American Express's strategy. They spent $6.3 billion on marketing in 2025 - that's up 75% since 2019.

**JORDAN**: Right, but here's what's smart about their approach - they're not just throwing money at marketing. They're being incredibly strategic about it. During the quarter, they actually reallocated marketing dollars away from lower-cost cash back products toward their premium Platinum cards. The percentage of fee-paying products in their US consumer portfolio jumped 8 percentage points year-over-year.

**ALEX**: That Platinum card refresh is really the star of the show here. Launched in September, it's already performing better than expectations. Squeri mentioned they're seeing high customer demand, excellent engagement, great credit quality, and no change in retention rates even as the new fees kick in.

**JORDAN**: The engagement numbers are pretty remarkable. They launched a new Platinum travel app, and travel bookings were up 30% in the fourth quarter. Restaurant spending through their Resy platform was up 20%. When you can get customers to spend more while maintaining pristine credit quality, that's the holy grail of credit card business.

**ALEX**: Speaking of credit quality, let's talk about that because it's been a competitive advantage for American Express. Their delinquency and write-off rates remained flat throughout the year and are still below 2019 levels. CFO Christophe Le Caillec noted they expect credit metrics to remain "generally stable" in 2026.

**JORDAN**: That's in stark contrast to many competitors who are guiding for increases in credit losses. It really speaks to the quality of American Express's customer base. They're targeting that premium segment - millennials and Gen Z customers are now the largest share of US consumer spending, with average ages of 33 on Platinum and 29 on Gold cards.

**ALEX**: Now, one number that had investors asking questions was net card acquisitions, which were down a bit. But I think Squeri's response was telling - he said they don't focus on acquiring cards, they focus on acquiring revenue. And they're hitting their revenue targets.

**JORDAN**: Exactly. It's about quality over quantity. They're deliberately shifting toward fee-paying customers, and that's showing up in the economics. The variable customer engagement costs - basically rewards and benefits - stepped

This episode includes AI-generated content.