American Express, or Amex, is a global financial services company. It offers various credit and charge cards for consumers and businesses. Founded in 1850, it started as an express mail business. Now, it is a major financial sector player. The company is headquartered in New York City and is part of the Dow Jones Industrial Average.
American Express is known for its excellent customer service and premium benefits. These include rewards programs, travel, dining benefits, and exclusive event access. They offer products for various market segments, ranging from everyday consumers to large corporations.
American Express earns money from card processing fees that businesses pay when they accept Amex cards. It also earns from annual membership fees and interest on outstanding balances. Additionally, Amex provides business financing solutions and travel-related services for extra income.
American Express Fiscal Q3 2025
American Express (AXP) reported strong results for the third quarter of 2025. Revenue rose by 11% compared to last year, reaching a record $18.4 billion. Earnings per share also grew by 19% to $4.14, beating expectations.
Card Member spending increased by 9%, or 8% when adjusted for currency changes. Also, the refreshed U.S. Platinum Card has seen high demand and strong customer engagement since its launch.
Based on this strong performance, the company raised its full-year forecast for revenue and EPS.
Financial Results:
- Total revenue (net of interest expense): $18.4 billion, up 11% YoY, driven by higher Card Member spending, increased net interest income, and strong card fee growth
- Credit loss provisions: $1.3 billion, down from $1.4 billion last year, lower reserve build, partly offset by higher net write-offs
- Net write-off rate: 1.9%, unchanged from last year
- Total expenses: $13.3 billion, up 10% YoY, due to higher customer engagement costs and operating expenses
- Effective tax rate: 24.1%, up from 21.8%. Reflects tax law changes across jurisdictions
Business Highlights:
- Launched updated U.S. Consumer and Business Platinum Cards: Strong early demand and engagement
- Introduced the Amex Travel App and new digital tools: Designed to enhance premium travel experiences
- Card acceptance expanded to 160 million merchant locations globally: Nearly 5x growth since 2017
- Formed a multi-year partnership with Toast: Aims to personalize hospitality across Resy, Tock, and Toast networks
- Rolled out Amex Ads, a new digital ad platform: Helps brands connect with Amex Card Members
- Ranked #1 issuer and #1 in Rewards – Annual Fee category: According to J.D. Power 2025 U.S. Credit Card Satisfaction Study
Guidance
The company is expecting stronger results for the full year. American Express has increased its forecast, now predicting revenue will grow by 9 to 10%, and earnings per share will reach between $15.20 and $15.50.
This updated guidance reflects confidence in continued growth and momentum through the rest of the year.
Board Statements
Stephen J. Squeri, Chairman and CEO of American Express, commented:
American Express delivered a strong quarter, with revenues increasing 11% year-over-year to a record $18.4 billion and earnings per share rising 19% to $4.14. Card Member spending growth accelerated to 8% on an FX-adjusted basis, and the company’s credit metrics remained best-in-class.
Squeri noted that the successful launch of the updated U.S. Consumer and Business Platinum Cards reinforced American Express’s leadership in the premium space. Initial customer demand and engagement exceeded expectations, with new U.S. Platinum account acquisitions doubling compared to pre-refresh levels.
Looking ahead, Squeri expressed confidence in American Express’s growth prospects, citing continued execution of its proven product refresh strategy and enhancements to its powerful Membership Model as key drivers of value for Card Members, merchant partners, and shareholders.
Impact on the Market
The strong Q3 earnings report from American Express had a positive impact on its stock. Following the announcement that revenue rose 11% to a record $18.4 billion and earnings per share jumped 19% to $4.14, both beating analyst expectations, AXP shares rose 1.6% in pre-market trading.
This uptick reflects investor confidence in the company’s performance and its raised full-year guidance, which now projects revenue growth of 9–10% and EPS between $15.20 and $15.50.
The strong demand for the refreshed U.S. Platinum Card and continued growth in Card Member spending also contributed to the upbeat market reaction.
