Key Takeaways:
American Express and Verizon report Q2 results Friday, with AXP expected to post $4.41 EPS and VZ forecast at $1.28.
The consensus estimates are compiled by Refinitiv, an LSEG business, which tracks analyst forecasts for both Dow components. American Express's provision for credit losses will be a key focus as consumer debt levels remain elevated, while Verizon's postpaid phone net additions and churn rate will signal wireless market trends.
American Express is expected to post earnings of $4.41 per share, according to Refinitiv data. The card issuer's net interest income and cardholder spending volumes will be closely watched, as rising delinquency rates across the banking sector have raised concerns about consumer health. American Express has historically attracted higher-credit-quality customers, which may provide a buffer against broader credit deterioration. The company's travel and entertainment spending category, which accounts for a significant portion of billings, will also be in focus given the summer travel season.
Verizon is forecast to report adjusted EPS of $1.28, per Refinitiv data. The telecom company's wireless service revenue growth and postpaid phone net additions will be key operating metrics, as the industry faces pricing pressure from T-Mobile and cable operators. Verizon has been investing in its network infrastructure and fiber broadband expansion to defend its market position. The company's consumer segment churn rate and average revenue per user will indicate whether its pricing strategy is holding up against competitors.
The two reports come during a busy earnings week that included results from Alphabet, Tesla, Intel, and American Airlines. Alphabet posted Q2 revenue of $119.8 billion, beating estimates of $116.9 billion, while Tesla missed on earnings with 33 cents per share versus 54 cents expected. Intel reports after Thursday's close, with analysts expecting 22 cents per share. American Airlines cut its 2026 earnings outlook earlier this week, citing higher fuel costs.
For American Express, the results will test whether the card issuer can maintain its growth trajectory as consumer spending shows signs of moderating. The stock has been a top performer in the financial sector this year, benefiting from strong travel and entertainment spending. Verizon shares have lagged, pressured by concerns over wireless market saturation and the capital spending required for 5G and fiber network upgrades.
A beat from both companies could lift the Dow Jones Industrial Average, where they represent about 5% of the index combined. Investors will watch Verizon's earnings call at 8:30 AM ET for updated subscriber guidance and capital expenditure plans, while American Express's commentary on spending trends through the second half of the year will signal consumer confidence heading into the holiday season. The results also carry broader implications for the financial and telecom sectors, with peer companies likely to move in sympathy.
This article is for informational purposes only and does not constitute investment advice.
