American Express Caps 2025 with Record Revenue, Eyes Continued Premium Growth in 2026
American Express Caps 2025 with Record Revenue, Eyes Continued Premium Growth in 2026
NEW YORK – American Express (NYSE: AXP) closed the books on a robust 2025, posting double-digit revenue growth and touting resilient credit metrics that outperformed pre-pandemic levels. In its fourth-quarter earnings call, management outlined a confident roadmap for 2026, anchored by sustained investment in premium products and technology aimed at deepening cardmember loyalty.
Chairman and CEO Steve Squeri declared the company delivered "another year of strong performance," with full-year revenue climbing 10% to a record $72 billion. Earnings per share reached $15.38, a 15% increase from the prior year when adjusted for a one-time gain. Squeri emphasized the company's "excellent credit quality" and its ongoing investments to fortify its membership-centric business model.
CFO Christophe Le Caillec provided granular detail, noting that net card fees jumped 18% to an all-time high of $10 billion for the year. Billed business in Q4 grew 8% on a currency-adjusted basis, with both goods & services and travel & entertainment spending accelerating from the first half. Perhaps most notably, Millennials and Gen Z now constitute the largest share of U.S. consumer spending for Amex and remain its fastest-growing customer cohorts.
"The average age of a new U.S. Consumer Platinum cardmember is 33, and for Gold, it's 29," Le Caillec noted, underscoring the company's successful appeal to a younger, affluent demographic.
A significant portion of the call focused on product strategy. Executives detailed refreshes of the U.S. Consumer and Small Business Platinum cards and expansions in co-brand partnerships with carriers like British Airways and Air France-KLM. Squeri revealed a strategic pivot in marketing spend, shifting investment away from lower-margin cash-back products and toward premium offerings following explosive demand for the Platinum card.
"We're focused on acquiring revenue, not just maximizing card counts," Squeri stated. Le Caillec added that the mix of fee-paying products within new U.S. card acquisitions improved by 8 percentage points year-over-year, signaling higher marketing efficiency.
Credit performance remained a bright spot. Delinquency and write-off rates were described as "remarkably strong and stable," remaining flat throughout 2025 and below 2019 levels. For 2026, the company expects credit metrics to hold steady, with only seasonal variations in provisions.
Looking ahead, management issued 2026 guidance projecting revenue growth of 9% to 10% and EPS in the range of $17.30 to $17.90. The outlook assumes continued momentum in premium card fees, stable credit, and mid-single-digit growth in operating expenses. The company also announced a planned 16% increase in its quarterly dividend to $0.95 per share.
Analyst & Investor Commentary:
"The numbers speak for themselves—record fees, pristine credit, and a clear roadmap for disciplined growth. Amex's pivot to premium and younger demographics isn't just a trend; it's a sustainable engine," said Michael Thorne, a portfolio manager at Sterling Capital Advisors.
"I'm skeptical about the 'high teens' fee growth projection for late 2026. This feels like a classic case of guiding optimism into an uncertain economic landscape. What happens if consumer spending on travel stutters?" remarked David Chen, an independent financial analyst known for his bearish takes.
"As a small business owner who uses the Business Platinum card, the refreshed benefits and the Toast partnership are game-changers. They're investing in real value, not just flashy marketing," shared Priya Sharma, founder of a boutique digital marketing agency.
"A 16% dividend hike and $7.6 billion returned to shareholders? That's management putting their money where their mouth is on confidence. The ROE of 34% is exceptional in this sector," commented Robert Gibson, a retired bank executive and long-term shareholder.
American Express, founded in 1850, is a global payments and travel services company. Its core operations include issuing charge and credit cards, operating a worldwide payment network, and providing travel-related services and loyalty programs.
This report is based on the company's Q4 2025 earnings call and financial disclosures.