Amex Q2 Card Member Spending Hits Record, Card Fees Soar

American Express Co. AXP reported fiscal second-quarter 2025 results on Friday, surpassing analyst estimates for both revenue and adjusted earnings per share.

The company reported quarterly revenue (net of interest expense) growth of 9% year-over-year to $17.86 billion, topping the analyst consensus estimate of $17.71 billion. 

The revenue increase was primarily driven by strong Card Member spending, higher net interest income supported by growth in revolving loan balances, and accelerated card fee growth.

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Adjusted EPS also exceeded projections, coming in at $4.08 against an analyst consensus of $3.87.

Delving into segments, Card Member spending, or Billed Business, rose 7% year-over-year to $416.3 billion. U.S. Consumer Services revenue climbed 10.6% to $8.55 billion, while Commercial Services revenue increased 6.5% to $4.21 billion.

International Card Services saw a 14.5% jump to $3.23 billion, and Global Merchant and Network Services revenue grew 3.2% to $1.93 billion. Net card fees surged 20% year-over-year to $2.48 billion.

Total expenses, however, increased by 14% year-over-year to $12.9 billion, largely due to higher variable customer engagement costs. Provisions for credit losses also rose to $1.4 billion from $1.3 billion a year ago, reflecting a higher net reserve build and increased net write-offs, driven by growth in total loans and Card Member receivables.

CEO Stephen J. Squeri highlighted record Card Member spending during the quarter, strong demand for American Express’s premium products, and compelling credit performance. Squeri expressed confidence in maintaining the company’s leadership in the premium segment, citing the upcoming refresh of U.S. Consumer and Business Platinum Cards, along with its differentiated membership model and product innovation, as key drivers for future growth.

FY25 Outlook

American Express reiterated its full-year 2025 revenue outlook of $71.22 billion to $72.54 billion, representing an 8%-10% year-over-year increase, aligning with the analyst consensus estimate of $71.31 billion.

The company also reaffirmed its EPS guidance of $15.00–$15.50, consistent with the analyst consensus of $15.23, subject to the macroeconomic environment.

Price Action: As of the last check on Friday, AXP stock was up 1.47% in premarket trading at $320.00.

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