American Express Co (NYSE:AXP) reported third-quarter 2025 results on Friday, surpassing analyst estimates for both revenue and adjusted earnings per share.
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The company reported quarterly revenue (net of interest expense) growth of 11% year-over-year to $18.43 billion, topping the analyst consensus estimate of $18.05 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.
Also Read: American Express Platinum Refresh Seen Offering Growth Potential Despite Customer Fatigue: Analyst
Adjusted EPS also exceeded projections, coming in at $4.14, topping the analyst consensus estimate of $4.00.
Segments
Card Member spending, or Billed Business, rose 9% year-over-year to $421.0 billion. U.S. Consumer Services revenue climbed 11.5% to $8.86 billion, while Commercial Services revenue increased 7.1% to $4.28 billion.
International Card Services saw a 13.6% jump to $3.34 billion, and Global Merchant and Network Services revenue grew 6.8% to $1.97 billion. Net card fees surged 18% year-over-year to $2.55 billion.
Total expenses, however, increased by 10% year-over-year to $13.3 billion, primarily due to higher variable customer engagement costs resulting from increased Card Member spending and usage of travel- and lifestyle-related benefits, as well as higher operating expenses.
Provisions for credit losses declined to $1.3 billion from $1.4 billion a year ago, reflecting a lower reserve build compared to the prior year, partially offset by higher net write-offs.
The third-quarter net write-off rate was 1.9 percent, flat year-over-year.
American Express Chairman and CEO Stephen J. Squeri highlighted that the successful launch of the refreshed U.S. Consumer and Business Platinum Cards drove demand, doubling new account acquisitions compared to pre-launch levels. Building on this momentum, he raised full-year guidance.
FY25 Outlook
American Express raised its full-year 2025 revenue outlook to $71.88 billion-$72.54 billion, representing a 9%-10% year-over-year increase (prior $71.22 billion-$72.54 billion), compared to the analyst consensus estimate of $71.60 billion.
The company also raised its EPS guidance to $15.20-$15.50 (from $15.00–$15.50 prior), compared with the analyst consensus of $15.33.
American Express stock gained 9% year-to-date.
AXP Price Action: American Express shares were up 2.05% at $329.75 during premarket trading on Friday, according to Benzinga Pro data.
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