American Express Company (NYSE:AXP, ETR:AEC1) reported better-than-expected earnings for the second quarter, driven by robust cardholder spending and demand for its premium products.
Earnings per share (EPS) grew 17% year-over-year to $4.08, beating the Wall Street consensus of $3.87 by $0.21.
Net income was about $2.9 billion, down slightly from $3 billion a year ago, attributed to increased provisions for credit losses and higher operating expenses.
Provisions for credit losses increased to $1.4 billion from $1.3 billion in the year-ago quarter, which weighed on Amex’s shares in early trade on Friday.
For Q2, revenue grew 9% year-over-year to $17.86 billion, above estimates of $17.7 billion.
Card member spending was up 7% from the same period in 2024, a record for the company.
“Our second quarter results continued the strong momentum we have seen in our business over the last several quarters,” Amex CEO Stephen Squeri said in a statement.
“Looking at the upcoming refresh of our US Consumer and Business Platinum Cards this fall, we are confident in our ability to sustain our leadership in the premium space, drawing on our competitive strengths.”
Further, the company reaffirmed its full-year EPS guidance of $15 to $15.50 and its revenue growth forecast of 8% to 10%.
Amex shares traded down 3.2% at about $306 shortly after the opening bell in New York.