American Express Company (NYSE:AXP, XETRA:AEC1) shares fell in early trading on Friday after the company reported fourth quarter earnings that slightly missed Wall Street estimates amid higher expenses.
For the quarter ended December 31, 2025, the company reported earnings per share of $3.53, below the consensus estimate of $3.50.
Total revenues net of interest expense reached $18.98 billion, up 10% from $17.18 billion a year earlier, while expenses totaled $14.5 billion, 10% higher than in Q4 2024.
Total expenses for the quarter were $14.5 billion, up 10% from a year earlier, reflecting higher operating costs, including the rollout of new perks for its Platinum card, such as $400 in annual dining credits at Resy restaurants.
For the full-year 2025, American Express reported net income of $10.8 billion, up 7% from $10.1 billion in 2024.
Full-year earnings per share rose to $15.38 from $14.01 a year earlier, or 15% higher when excluding a prior-year transaction gain. Total revenues for the year reached $72.2 billion, a 10% increase over 2024.
The company also highlighted growth in cardholder activity. Billed business in Q4 totaled $445.1 billion, up 9% from a year earlier, with card member spending rising 9%, or 8% on a foreign-exchange adjusted basis.
Looking ahead, American Express expects full-year 2026 revenue growth of 9% to 10% and earnings per share in the range of $17.30 to $17.90.
Stephen Squeri, American Express CEO, described 2025 as a very strong year for the company.
"Importantly, we continued to strategically invest in areas that strengthen our Membership Model and drive our growth, such as our successful US Platinum Card refresh and technology enhancements like new app and Gen AI-powered experiences,” Squeri said.
"Looking ahead, we plan to continue to execute our proven investment philosophy in order to deliver sustained revenue and EPS growth and strong shareholder returns over the long term.”
Shares of American Express traded down almost 3% on Friday morning.