American Express Company (AXP): A Top Financial Stock to Buy According to Warren Buffett

We just covered the 10 Best Financial Stocks to Buy According to Warren Buffett and American Express Company (NYSE:AXP) ranks 1st on this list.

American Express Company (NYSE:AXP) is a long-term pick in the 13F portfolio of Berkshire Hathaway. The stock has featured in the portfolio of the fund since the fourth quarter of 2010. Back then, this position comprised over 151 million shares. The fund held onto this stake till the first quarter of 2012 before selling it off completely. A new position in the stock was then opened in the third quarter of 2012 but was sold off by the next quarter. Another position in the firm was declared in the third quarter of 2013. This consisted of more than 151 million shares. Since then, no change has been made to this stake, per filings for the first quarter of 2026.

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American Express Company (NYSE:AXP) has strong financials and a premium customer base. In the latest earnings report, disclosed in late April, the company reported a diluted EPS of $4.28, representing an 18% increase year-over-year from $3.64. Net income grew 15% to $3 billion. Total revenues hit $18.91 billion, up 11%, driven by card fee growth and net interest income. Card Member spending growth also accelerated to 10%, marking the highest quarterly growth rate in three years. Backed by this momentum, management reaffirmed full-year 2026 guidance, projecting annual revenue growth of 9% to 10% and an EPS of $17.30 to $17.90.

While we acknowledge the risk and potential of AXP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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