American Express Co Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
American Express' Q3 2025 earnings call highlighted strong financial performance, driven by revenue growth and excellent credit performance. The company is focused on enhancing its premium offerings, particularly the Platinum card, to drive customer engagement and growth. Management raised its full-year guidance, reflecting confidence in its business model and market position.
Key financial results:
Revenues increased by 11% year-over-year to a record $18.4 billion.
Earnings per share (EPS) rose by 19% to $4.14.
Card Member spending accelerated to 9%, or 8% on an FX-adjusted basis.
Annual card fees are approaching $10 billion and have grown at double digits for 29 consecutive quarters.
ROE of 36% this quarter.
Business segment results:
Strong retail spending, up 12%.
Rebound in T&E spending.
Restaurant spending increased by 9%.
Premium T&E bookings saw good momentum, with spending on front-of-cabin airline tickets up 14%.
International spend was up 13%, FX-adjusted.
Spend on Platinum Cards issued outside the US is up 24% this quarter.
Millennials and Gen Z now account for 36% of total spend.
Small business saw a 4% growth.
Large and global saw a 6% growth.
Capital allocation:
Returned $2.9 billion of capital to shareholders.
$0.6 billion in dividends.
$2.3 billion in share repurchases.
Aspiration to return around 70% of earnings to shareholders.
Dividend is up 58% over the past three years.
Industry trends and dynamics:
Growing number of world-class merchant partners.
Increasing merchant coverage outside the US.
Shift towards digital capabilities for consumers and businesses.
Competitive landscape:
American Express has a global premium customer base that is unmatched in the industry.
The company aims to provide the best customer experience through continuous investment and innovation.
American Express has a distinct advantage due to the scale of its premium customer base.
The company has relationships with 160 million merchants around the world.
American Express card members spend nearly three times more annually than the average spend per card on other networks.
Macroeconomic environment:
The company assumes a stable macroeconomic outlook for the remainder of the year.
The card base is not representative of what's going on across the United States.
It truly is a bifurcated economy.
Growth opportunities and strategies:
Refreshing products regularly to drive customer engagement and growth.
Enhancing value propositions with compelling benefits, services, and experiences.
Expanding digital capabilities for consumers and businesses.
Growing merchant coverage outside the US.
Focus on Millennial and Gen Z consumers.
The company is focused on premium products, which tend to attract high-income, highly creditworthy customers.
Financial Guidance and Outlook:
Full-year revenue growth is expected to be 9% to 10%.
EPS is projected to be between $15.20 and $15.50.
Aspiration to deliver mid-teens EPS growth.
