American Express Rides High on Luxury Spending Surge, CEO Criticizes Proposed Rate Caps
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American Express, long synonymous with premium financial services, is reaping the rewards of its affluent clientele's resilience. The company's latest earnings reveal a striking 15% year-over-year increase in cardholder spending at luxury merchants during the fourth quarter, underscoring a robust high-end consumer segment even amid broader economic uncertainties.
This specific metric, disclosed for the first time, adds color to a strong quarterly performance. Total network volume for Q4 reached $445.1 billion, a 9% increase from the prior year. For the full year 2025, Amex processed $1.67 trillion in cardholder spending, up 8%.
The company's strategic focus on its high-value Platinum card, which carries a $895 annual fee, appears central to this growth. "We reallocated marketing dollars away from lower-cost cashback products to Platinum," CEO Steve Squeri stated during Friday's earnings call, signaling a clear pivot toward deepening relationships with big spenders.
The financial results were solid across the board. Q4 net income rose 13% to $2.46 billion, on revenue of $18.98 billion—a 10% increase. Full-year 2025 net income was $10.83 billion, with total revenue hitting $72.23 billion.
Beyond the numbers, Squeri entered the political fray, adding his voice to industry leaders critical of former President Donald Trump's revived proposal for a nationwide 10% cap on credit card interest rates. "Affordability is really important, but I don't think a 10% credit card cap is the answer," Squeri argued. "It would reduce the number of cards in the marketplace." The proposal, which also has bipartisan legislative counterparts in Congress, faced a January 20 deadline that passed without action from card networks.
The disclosure on luxury spending, while a one-time event according to a company spokesperson, highlights Amex's unique market position. It suggests the brand is not only insulated from some economic pressures but is actively leveraging its premium reputation to drive growth.
Reader Reactions
Michael R., Financial Analyst in NYC: "The luxury spend data is the real story here. It shows Amex's model is working. They're not chasing mass market volume; they're cultivating high-margin relationships that are less sensitive to rate cycles."
David Chen, Small Business Owner: "As a Gold card user, I appreciate the service, but this focus on the ultra-wealthy is concerning. It feels like the company is moving further away from the everyday business customer who built the brand."
Sarah Johnson, Consumer Advocate: "Squeri's comments on rate caps are tone-deaf and self-serving. Of course the CEO of a company profiting from high-interest lending doesn't want a cap! This is about protecting billions in revenue from consumers struggling with debt, not 'choice in the marketplace.'"
Priya Mehta, Retail Consultant: "The 15% bump at luxury merchants isn't surprising. Our data shows high-net-worth individuals continued to spend on experiences and goods post-pandemic, and Amex is perfectly positioned to capture that."