American Express Posts Record Revenue in Q2 as Premium Card Spending Stays Strong

American Express (NYSE: AXP) delivered a solid second-quarter performance, topping analyst expectations on both revenue and earnings, and reaffirming full-year guidance amid signs of resilient consumer spending. The credit card giant posted record revenue and saw a strong uptick in cardholder activity, driven largely by demand for its premium offerings. Despite ongoing economic uncertainty and a modest decline in net income on a reported basis, the results underscore the health of affluent consumers and serve as a positive read-through for broader U.S. spending trends.

For the quarter ended June 30, Amex reported earnings per share of $4.08, beating the average analyst estimate of $3.89. On a year-over-year basis, adjusted EPS rose 17%, excluding a $0.66 gain from the sale of Accertify in the prior year. Revenue grew 9% to $17.9 billion, also ahead of consensus expectations for $17.71 billion. According to Chairman and CEO Stephen Squeri, “Our second-quarter results continued the strong momentum we have seen in our business over the last several quarters, with revenues growing 9 percent year-over-year to reach a record $17.9 billion, and adjusted EPS rising 17 percent.”

Cardmember spending, or “billed business,” rose 7% year-over-year to $416.3 billion, another record for the company. Net card fees surged 20% to $2.48 billion, reflecting sustained demand for high-end cards. Squeri noted that “demand for our premium products was strong,” adding that the premium card market continues to grow at a “healthy” rate. However, there were some signs of softening in discretionary categories. On the company’s earnings call, Squeri said, “Spending on airline and lodging was softer,” suggesting that while travel remains a tailwind, growth may be moderating as inflation and price fatigue weigh on some segments of leisure activity.

American Express attributed the revenue growth to three key drivers: higher cardholder spending, increased net interest income, and continued card fee growth. Net interest income rose 12% to $4.19 billion, slightly below expectations but consistent with the company’s revolving loan growth. Meanwhile, credit quality remains solid. The provision for credit losses came in at $1.4 billion, up modestly from $1.3 billion a year ago, primarily due to reserve builds and higher write-offs in a growing loan portfolio. Notably, the net write-off rate ticked down to 2.0% from 2.1% in the prior year.

CFO Jeff Campbell emphasized that “credit quality remains resilient,” and the company also pointed to recent CCAR stress test results showing Amex had the lowest projected credit card loss rate and the highest projected return on assets among peers. Those results are expected to bolster investor confidence in Amex’s ability to maintain capital strength while continuing to grow.

Operating expenses rose 14% year-over-year to $12.9 billion, largely due to higher customer engagement costs and investments in enterprise risk and technology infrastructure. The increase also reflects the non-repeat of last year’s gain from the Accertify sale. Despite the uptick in expenses, American Express continues to invest in strategic areas aimed at sustaining its premium brand positioning.

The company reaffirmed its full-year 2025 guidance, projecting revenue growth of 8% to 10% and EPS between $15.00 and $15.50. That’s in line with the company’s prior outlook and reflects management’s confidence in the spending trajectory of its customer base. As Squeri explained, “With our differentiated Membership model and proven product refresh strategy, combined with the expansion of the premium category, we see a long runway for growth.”

Looking ahead, Amex announced upcoming updates to its U.S. Consumer and Business Platinum Cards this fall—a move that signals continued investment in the premium segment. It also previewed the launch of the new Coinbase One Card on the American Express network, indicating an ongoing push into digital and crypto-adjacent services.

In early Friday trading, shares of AXP rose about 1.4%, extending their year-to-date gain of roughly 6%. Investors appear encouraged by the combination of earnings strength, stable credit metrics, and a healthy tone on future spending, particularly in the premium consumer cohort.

With high-end cardholders still willing to spend and Amex’s business model proving resilient even amid modest macro headwinds, the Q2 report is likely to reinforce broader optimism about the U.S. consumer. And with the company continuing to invest in both digital innovation and card member benefits, American Express appears well-positioned to sustain its growth trajectory.

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