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.
Amex is known for its good customer service and premium benefits. These include rewards programs, travel, and dining benefits, and exclusive event access. They have products for different market segments, 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 Q2 2025
American Express (AXP) reported net income of $2.9 billion for the second quarter, slightly lower than the $3 billion earned in the same period last year. Earnings per share came in at $4.08, down 2% from $4.15 a year ago, but up 17% when adjusted.
Total revenue, excluding interest expenses, rose 9% year-over-year to reach a record $17.9 billion. The growth was driven by strong Card Member spending, higher net interest income from revolving loan balances, and continued card fee growth.
Operating expenses climbed 14% year-over-year to $12.9 billion, reflecting higher investments in risk management and technology, as well as increased customer engagement costs.
The effective tax rate fell to 18.7%, down from 20.4% a year ago, mainly due to the resolution of prior-year tax items.
Guidance
American Express still expects to grow revenue by 8% to 10% this year and earn between $15.00 and $15.50 per share.
Board Statements
Stephen J. Squeri, Chairman and CEO of American Express, stated that the company continued its strong business momentum in the second quarter of 2025. Revenue rose 9% year-over-year to a record $17.9 billion, while adjusted earnings per share increased by 17%.
He highlighted record Card Member spending during the quarter and strong demand for premium products, noting that credit performance remained exceptional. Given the solid results so far this year, American Express is reaffirming its full-year guidance of 8% to 10% revenue growth and earnings per share between $15.00 and $15.50.
He pointed to the firm’s differentiated membership model, its successful history of product innovation, and the ongoing expansion of the premium market as key drivers of future growth.
Impact on the Market
American Express’s Q2 2025 earnings show steady business momentum. Adjusted earnings per share rising 17% and revenue reaching a record, up 9% year-over-year. The company benefited from strong Card Member spending, increased interest income, and continued demand for premium products.
Credit performance remained solid, and Amex reaffirmed its full-year outlook, expecting 8%–10% revenue growth. Also, it prepares to launch new premium card updates and continues investing in long-term growth.
American Express shares declined by 3% following the release of its Q2 2025 earnings. The company reported solid revenue growth and strong performance across card member spending. However, investor sentiment may have been affected by the slight drop in net income compared to the previous year and higher operating expenses.
Shares of AXP were rejected at a key resistance level, and technical chart indicators point toward further downward pressure.
