TLDR
- Q2 EPS was $4.08, up 17% year-over-year, excluding a prior Accertify sale gain
- Revenue reached $17.9 billion, up 9% year-over-year and a new quarterly record
- Total card member spending rose 7%, but travel spend growth slowed
- Net card fees hit record levels, up 20% FX adjusted
- Shares dropped 2.5% despite reaffirmed full-year guidance
American Express Company (NYSE: AXP) closed at $307.95 on July 18, down 2.35% after announcing its Q2 2025 results.
American Express Company (AXP)
The company posted earnings per share (EPS) of $4.08, marking a 17% increase from last year, excluding gains from the sale of Accertify. Revenue grew 9% to $17.9 billion, a record for the company.
The results were fueled by growth in card member spending, net fees, and continued momentum in premium services. However, investors showed caution due to rising operating expenses and competitive pressure in the high-end credit card market.
American Express Q1 Report:
Total Network Volume +7%
Total Revenue +9%
Adj. EPS +17%
Cardholders +4%
Avg. Fee per Card +16%$AXP: -2.8% pic.twitter.com/nOZuqTGE4U— Fiscal.ai (formerly FinChat) (@fiscal_ai) July 18, 2025
Card Spending and Fee Growth Lead the Way
Total card member spending rose 7% year-over-year, matching Q1 growth and exceeding the 6% gain from Q2 2024. New card acquisitions reached 3.1 million. Net card fees surged 20% FX adjusted, reaching record levels as the company expanded its premium offerings.
Transaction growth came in at 9%, supported by affluent customer activity. Hotel bookings over $5,000 increased 9%, while spending on premium airline cabins rose 10%.
Travel Spending Softens as Airfare Declines
Despite strong overall card usage, American Express reported flat year-over-year airline spending, largely driven by a drop in economy class airfare purchases. CFO Christophe Le Caillec told CNBC that while premium travel remained strong, economy class spending showed signs of weakness.
This softness comes at a time when airfare prices declined 3.5% in June. The drop raised concerns due to Amex’s close partnerships with airlines and its global lounge network, core perks of its premium card ecosystem.
Costs Rise Amid Competitive Pressure
Operating expenses rose 9% year-over-year, excluding Accertify, with the increase driven by investments in technology, compliance, and risk management. Provision expenses reached $1.4 billion, including a reserve build of $222 million due to a worsening macroeconomic outlook.
Analysts remain concerned about increased spending on rewards programs as Amex pushes growth through its refreshed Platinum card. Competition from JPMorgan, Capital One, and Citigroup is heating up, challenging Amex’s position in the premium card space.
Outlook Remains Steady Despite Stock Dip
Despite the earnings beat, American Express shares fell 2.5% after the announcement, reflecting investor concerns over costs and competitive dynamics. Year to date, the stock is up less than 4%, trailing peers like JPMorgan Chase and Citigroup.
Still, the company reaffirmed its full-year 2025 guidance of 8%–10% revenue growth and EPS between $15 and $15.50, signaling confidence in its strategy. Return on equity came in at 36%, and Amex returned $2 billion to shareholders through dividends and share repurchases.
