American Express Exceeds Q3 Targets, Driven by Higher Card Spending

American Express (NYSE: AXP) has posted impressive financial results for the third quarter of 2025, surpassing expectations and setting a new revenue record. The company also raised its guidance for the full year, reflecting its confidence in continued growth.

Revenue Jumps 11% as Card Member Engagement Reaches New Highs

American Express has reported a robust performance for the third quarter of 2025, with total revenues net of interest expense reaching $18.4 billion, an 11% increase from the previous year. This figure surpasses the market expectation of $18.0 billion, setting a new record for the company. Earnings per share (EPS) also saw a significant rise, reaching $4.14, which is a 19% increase from $3.49 in the same quarter last year, and above the anticipated $3.96.

Card Member spending was a key driver of this growth, with a 9% increase, or 8% when adjusted for foreign exchange rates. The company’s credit metrics remained strong, and the launch of the updated U.S. Consumer and Business Platinum Cards contributed to this success, with new account acquisitions doubling compared to pre-refresh levels.

Additionally, the company’s net income for the quarter was $2.9 billion, up from $2.5 billion a year ago, a 16% increase. This growth was supported by higher net interest income due to increased revolving loan balances and continued strong card fee growth. Operating expenses also rose by 10%, driven by higher variable customer engagement costs and increased usage of travel- and lifestyle-related benefits.

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AXP Lifts Outlook on Strong Demand and Product Expansion

In light of its strong performance, American Express has raised its full-year guidance for 2025. The company now expects revenue growth between 9% and 10%, with EPS projected to be between $15.20 and $15.50. This upward revision reflects the company’s confidence in its growth strategies and the successful execution of its product refresh strategy.

Looking ahead, American Express is optimistic about its growth prospects, driven by its focus on enhancing the Membership Model to deliver value to Card Members, merchant partners, and shareholders. The company’s recent initiatives, such as the launch of the Amex Travel App and digital tools, aim to simplify and enhance the premium travel experience for U.S. Card Members.

Furthermore, American Express continues to expand its global network, with its cards now accepted at an estimated 160 million merchant locations worldwide. This expansion is part of the company’s strategy to offer differentiated products and services that enrich lives and build business success, reinforcing its position as a leading global payments and premium lifestyle brand.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.