American Express Q2 Results Exceed Expectations Despite Competitive Premium Credit Card Market

American Express reported Q2 earnings that beat profit expectations, with record card member spending, strong demand for premium products, and best-in-class credit performance. The company's billed business for the quarter was $416.3 billion, and total revenue was up 9% to $17.9 billion. Amex is focusing on its wealthy customer base and recently announced a major card refresh to stay competitive in the premium rewards card market.

American Express Co. (NYSE: AXP) reported its second-quarter 2025 earnings on Friday, surpassing analyst expectations for both revenue and earnings per share (EPS). The company's quarterly revenue, net of interest expense, increased by 9% year-over-year to $17.86 billion, exceeding the analyst consensus estimate of $17.71 billion [1].

The key driver behind this revenue growth was strong card member spending, which rose 7% year-over-year to $416.3 billion, and higher net interest income supported by growth in revolving loan balances. Card fees also surged by 20% year-over-year to $2.48 billion [1]. U.S. Consumer Services revenue climbed 10.6% to $8.55 billion, while Commercial Services revenue increased 6.5% to $4.21 billion [1].

American Express' international card services revenue jumped 14.5% to $3.23 billion, and Global Merchant and Network Services revenue grew 3.2% to $1.93 billion. Despite these positive figures, total expenses increased by 14% year-over-year to $12.9 billion, primarily due to higher variable customer engagement costs. Provisions for credit losses also rose to $1.4 billion from $1.3 billion a year ago [1].

The company's adjusted EPS came in at $4.08, exceeding the analyst consensus estimate of $3.87. CEO Stephen J. Squeri highlighted the strong demand for American Express's premium products and expressed confidence in maintaining the company's leadership in the premium segment. He noted that the upcoming refresh of U.S. Consumer and Business Platinum Cards, along with the company's differentiated membership model and product innovation, would be key drivers for future growth [1].

American Express reaffirmed its full-year 2025 revenue outlook of $71.22 billion to $72.54 billion, representing an 8%-10% year-over-year increase, aligning with the analyst consensus estimate of $71.31 billion. The company also reaffirmed its EPS guidance of $15.00–$15.50, consistent with the analyst consensus of $15.23 [1].

Shares of American Express were up 1.47% in premarket trading at $320.00 as of the last check on Friday [1]. Despite the positive earnings report, American Express shares fell 3.17% in pre-market trading, influenced by broader market conditions and investor caution [3].

References:
[1] https://finance.yahoo.com/news/amex-q2-card-member-spending-123010219.html
[2] https://www.investopedia.com/record-credit-card-spending-helps-american-express-top-revenue-profit-estimates-11773319
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-american-express-q2-2025-beats-earnings-expectations-93CH-4142010