American Express Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +12.62%.
Did AXP Beat Earnings? Q1 2025 Results
American Express opened 2025 on firm footing, posting first-quarter earnings per share of $3.64, ahead of the $3.47 consensus estimate by 4.80%, as its affluent cardholder base continued spending freely on travel, dining, and everyday essentials. Revenue came in at $16.97 billion, edging past estimates by 0.23%, though the figure reflected a 4.7% decline year-over-year amid tough prior-period comparisons. The clearest engine behind the beat was a powerful combination of surging card fee income, up 18% to $2.33 billion, and net interest income rising 11% to $4.17 billion on growing revolving balances, which together offset higher customer engagement costs. Credit quality held steady, with the net write-off rate flat at 2.1% and provisions falling 9% to $1.15 billion, reinforcing confidence in the premium customer strategy. Notably, Gen Z and millennial cardholders, who accounted for 60% of new card acquisitions, are showing stronger spending growth than older cohorts, a dynamic management cited as a durable tailwind. American Express reaffirmed its full-year 2025 guidance for revenue growth of 8% to 10% and EPS of $15.00 to $15.50, though it added a caveat around the broader macroeconomic environment.
- Higher net interest income supported by growth in revolving loan balances (net interest income up 11% YoY)
- Increased Card Member spending with billed business up 6% YoY to $387.4 billion
- Strong card fee growth with net card fees up 18% to $2.333 billion
- Average fee per card increased 13% to $111
- Proprietary cards-in-force grew 4% to 84.6 million
- Card Member loans grew 10% YoY to $139.2 billion
- Credit performance remained stable with net write-off rate flat at 2.1%
- Modest net reserve release compared to net reserve build a year ago
“We delivered strong results during the first quarter, reflecting the power of our premium customer base. FX-adjusted revenue increased 8 percent year-over-year, or 9 percent excluding the leap year impact, to $17.0 billion. Total Card Member spending continued to grow at a solid pace, up 6 percent, or 7 percent excluding the leap year impact.”
American Express CEO, on the earnings call
Forward Guidance & Outlook
American Express is maintaining its full-year 2025 guidance for revenue growth of 8 to 10 percent and earnings per share of $15.00 to $15.50, consistent with ranges provided in January, subject to the macroeconomic environment. The company cited steady spend and credit trends observed to date and the current economic outlook as the basis for reaffirming guidance.
AXP YoY Financials
AXP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.