American Express Exceeds Q2 Earnings Expectations on Premium Card Growth

American Express reported strong second-quarter 2025 financial results, beating earnings per share (EPS) estimates for the sixth consecutive quarter with EPS of $4.08, a 17% year-over-year increase driven by robust spending from affluent cardholders. Total revenues rose 9% to $17.9 billion, supported by growth in card member spending, especially among Millennials and Gen Z, who favor premium, fee-based products. Despite these gains, American Express maintained its full-year guidance and saw a rise in provisions for credit losses and operating expenses due to increased customer engagement and travel-related benefits usage. The company's strategic focus on high-value premium offerings, including upcoming major updates to its Platinum cards in the U.S., underpins expectations for continued growth in fees and spending. Analysts view the company's conservative 2025 outlook and recent share price pullback as potential buying opportunities, given the resilient consumer spending trends and strong credit quality evidenced by low net write-off and past-due rates. Competition in the premium credit card space is intensifying, but AmEx's leadership in this segment remains solid, supported by exclusive benefits and partnerships.