American Express Q2 Spending Volume Growth Accelerates to 7%

American Express reported a 7% increase in spending volume growth in Q2, according to Argus. The company's product portfolio includes charge and credit card products, expense management services, and travel services. Analyst Stephen Biggar covers large global banks, regional banks, and domestic credit card companies.

American Express (NYSE: AXP) reported a robust performance in the second quarter of 2025, with a 7% increase in spending volume growth, according to Argus. The company's financial services sector, which includes charge and credit card products, expense management services, and travel services, demonstrated resilience despite broader economic jitters [1].

The company's revenue grew by 9% to $17.9 billion, surpassing the FactSet consensus of $17.7 billion. This growth was driven by a 7% increase in cardmember spending compared to the first quarter. American Express also reported earnings per share of $4.08, down 2% year-over-year, but this figure would have been up 17% if adjusted for a 66-cent per-share gain from the sale of part of the business in the prior year [1].

Analysts tracked by FactSet had expected $3.89 in EPS for the latest quarter, and American Express's adjusted EPS of $4.08 exceeded these expectations. The company noted strong demand for its premium products and growth in card fees, contributing to its overall financial performance [1].

American Express also reported a net write-off rate of 2% in the quarter, down from 2.1% in the year-earlier quarter, indicating improved credit performance. Consolidated expenses rose 14% to $12.9 billion, reflecting increased use of travel-related benefits and financial dynamics around the sale of Accertify in the year-prior quarter [1].

Despite the company's strong performance, American Express's stock price dropped more than 3% intra-day, driven by concerns over the recently passed GENIUS Act stablecoin bill. This bill establishes a regulatory framework for stablecoins, which could potentially open up the market to new players and pose a threat to traditional payment networks like American Express [2].

American Express maintains its full-year 2025 forecast, projecting earnings per share between $15.00 and $15.50, with revenue growth expected to be between 8% and 10%. The company's median price target is $327 per share, suggesting 8% upside, and it remains reasonably valued with a P/E of 22 [2, 3].

References:
[1] https://www.marketwatch.com/story/american-express-earnings-show-healthy-growth-in-spending-67eb26a4
[2] https://www.investing.com/analysis/american-express-beats-on-earnings-but-stablecoin-bill-weighs-on-shares-200663973
[3] https://site.financialmodelingprep.com/market-news/fmp-american-express-drops-3-despite-posting-q2-beat