American Express Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.95%.
Did AXP Beat Earnings? Q2 2025 Results
American Express delivered a strong second quarter, with <a href="https://247wallst.com/investing/2025/07/18/live-american-express-q2-earnings-updates/">record results across key metrics</a> as earnings per share of $4.08 beat the $3.86 consensus by 5.61% and revenue of $17.86 billion edged past estimates by 0.87%. The headline revenue figure represented a 2.9% decline year over year on a reported basis, though the company emphasized underlying growth of 9% driven by record Card Member spending, a 20% surge in net card fees to $2.48 billion, and a 12% rise in net interest income to $4.19 billion. Billed business hit a quarterly record of $416.30 billion, up 7% year over year, with International Card Services leading segment growth at 15%. Credit quality held firm, with the net write-off rate improving to 2.0%. As competition in the premium card space intensifies, management reaffirmed full-year 2025 guidance for 8% to 10% revenue growth and EPS of $15.00 to $15.50, with a planned Platinum Card refresh this fall seen as a key catalyst heading into year-end.
- Record Card Member spending with billed business up 7% YoY to $416.3 billion
- Net card fees grew 20% YoY to $2.48 billion driven by strong premium product demand
- Net interest income increased 12% YoY to $4.19 billion supported by revolving loan balance growth
- Discount revenue rose 6% YoY to $9.36 billion
- International Card Services billed business grew 15% YoY (12% FX-adjusted)
- Credit performance remained best-in-class with net write-off rate improving to 2.0% from 2.1%
- Effective tax rate declined to 18.7% from 20.4% due to discrete tax benefits
“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.”
American Express CEO, on the earnings call
Forward Guidance & Outlook
American Express reaffirmed its full-year 2025 guidance for revenue growth of 8 to 10 percent and earnings per share of $15.00 to $15.50. The company also announced major updates coming to U.S. Consumer and Business Platinum Cards in the fall of 2025, expressing confidence in sustaining leadership in the premium space with a long runway for growth driven by the differentiated Membership model and expansion of the premium category.
AXP YoY Financials
AXP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.