American Express' (AXP) Q1 results were healthy, with accelerating billings and revenue trends, while new card acquisitions remained solid, making it a quality core holding with a "solid" outlook for billings, revenue, and earnings per share, RBC Capital Markets said in a note.

Management remains optimistic about the medium-term outlook and is confident in American Express' ability to drive strong growth and earnings, the brokerage said in a note Thursday.

The company has seen success with product refreshes and new customer acquisition in premium and fee-paying categories, and RBC expects the Platinum Card refresh to continue providing tailwinds.

The investment firm said American Express' customer base has remained resilient with strong performance, including among younger premium cohorts.

Management expects EPS of $17.30 to $17.90 and revenue growth of 9% to 10% for 2026. The company targets long-term annual revenue growth of over 10% and mid-teens annual EPS growth. RBC maintains its 2026 EPS estimate of $17.80 and 2027 estimate of $20.50, according to the note.

RBC has an outperform rating on American Express with a price target of $415.

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