American Express Caps Strong 2025 with Record Revenues, Eyes Sustained Premium Growth in 2026

NEW YORK – American Express (NYSE: AXP) concluded a year of significant strategic execution with strong fourth-quarter and full-year 2025 results, underscoring the resilience of its premium-focused membership model. The financial services giant reported record full-year revenues of $72 billion, a 10% increase year-over-year, with earnings per share (EPS) reaching $15.38, up 15% excluding one-time gains.

The company's performance was fueled by double-digit growth in card fees for the 30th consecutive quarter, sustained strength in credit quality, and a deliberate reallocation of marketing resources toward its fee-paying Platinum and Gold products. This strategic pivot contributed to a notable shift in its card member base, with Millennial and Gen Z customers now representing the largest share of U.S. consumer spending.

"We are operating from a position of strength," said Chairman and CEO Stephen Squeri during the earnings call. "The momentum we've built, particularly from our successful U.S. Platinum card refresh, gives us confidence in our ability to deliver on our 2026 guidance and drive strong growth over the long term."

For the upcoming year, American Express provided guidance of 9% to 10% revenue growth and EPS between $17.30 and $17.90. In a clear signal of confidence in its financial trajectory, the board announced a planned 16% increase in the quarterly dividend to $0.95 per share.

Strategic Investments and Technological Edge

A core theme of the call was the company's disciplined investment philosophy, which saw $6.3 billion deployed in marketing and $5 billion in technology during 2025. CFO Christophe Le Caillec detailed how these investments are categorized across marketing, technology development, and card member value propositions (recorded as Card Member Services expenses).

A significant portion of tech spending is directed towards a next-generation data and analytics platform built on public cloud infrastructure. This platform, expected to be fully migrated by 2027, has already reduced processing times for key marketing and fraud prevention tasks by 90%. The company is also deploying generative AI tools to nearly all employees worldwide to enhance service and operational efficiency.

"The key lesson is that investments in our value propositions pay off in multiple ways," Squeri explained, highlighting improved customer engagement, stronger credit performance, and more efficient marketing spend as interconnected benefits.

Navigating Competition and Macroeconomic Winds

While bullish on its prospects, management acknowledged the intensely competitive environment, particularly in commercial services following Capital One's acquisition of Brex. Squeri positioned American Express's recent acquisition of expense management platform Center as a key countermove, with integration planned for mid-2026.

When asked about risks to the 2026 outlook, Squeri pointed more toward macroeconomic or political factors than competition. He specifically addressed a proposed legislative cap on credit card interest rates, stating, "Affordability is really important. I don't think a 10% credit card cap is the answer to that... it would have the effect of a downward spiral."

The company's credit metrics remained a standout, with delinquency and write-off rates stable and below 2019 levels, attributed to the premium nature of its expanding customer base.

Analyst and Investor Perspectives

Following the call, market observers offered mixed reactions:

Michael Thorne, Senior Analyst at Crestwood Advisors: "Amex is executing its premium playbook flawlessly. The metrics speak for themselves: record card fees, best-in-class credit, and a demographic shift that secures its future. The dividend hike is a powerful statement of sustained earnings confidence."

Lisa Chen, Portfolio Manager at Horizon Capital: "The results are solid, but I'm scrutinizing the cost. VCE (Value of Card Member Services) as a percentage of revenue stepped up. They're investing heavily to buy growth in a crowded premium market. The question is how long they can keep expanding margins while this investment cycle continues."

David Riggs, independent financial blogger at "The Street Skeptic": "Here we go again. 'Record revenues' but let's talk about the net cards acquired? They gloss over it. They're shifting spend to buy expensive Platinum customers today, but what happens when the economic tide goes out and these premium users start cutting back? This feels like a strategy built for a perpetual bull market. And that dividend increase? Returning capital instead of fortifying the balance sheet ahead of potential turbulence seems shortsighted."

Priya Sharma, Fintech Specialist at MIT Sloan: "The real story isn't just the Platinum card; it's the tech stack behind it. Their cloud-based data platform and GenAI deployment could create a formidable moat. If they can personalize offers and service at the scale they're suggesting, it could significantly lower acquisition costs and lock in engagement, justifying today's investments."

As American Express moves into 2026, its challenge will be to balance the aggressive investment fueling its current growth with the disciplined execution needed to deliver on its promised mid-teens EPS growth, all while watching the broader economic landscape.