American Express Profits Surge Amid Strong Card Spending

Strong Q3 Performance and Profit Growth

American Express reported a robust 16% increase in third-quarter profits, reaching $2.9 billion compared to $2.51 billion during the same period last year. The company’s earnings per share (EPS) also surpassed analysts’ expectations, climbing to $4.14 from $3.49 a year earlier. This growth was driven by a surge in cardholder spending, particularly among high-net-worth customers, signaling strong demand for AmEx’s premium products. The results underscore the company’s ability to capitalize on affluent consumer behavior and its positioning in the competitive credit card market.

Key Drivers of Revenue Growth

The successful refresh of the iconic Platinum Card played a significant role in boosting revenue. The enhanced card features, coupled with an increased annual fee of $895, attracted substantial customer interest, with over 500,000 requests for conversions shortly after the launch. Higher card fees contributed to an 18% year-over-year increase in net card fee revenue, totaling $2.55 billion. Additionally, revolving loan balances rose by 8%, reflecting greater cardholder spending and borrowing. Total billed business grew 9% year-over-year to $421 billion, supported by strong consumer and commercial spending trends globally.

Future Outlook and Updated Guidance

American Express raised its full-year revenue forecast to a range of $71.88 billion to $72.54 billion, representing a 9%-10% increase compared to the prior year. The EPS guidance was also revised upward to $15.20-$15.50, exceeding earlier estimates. The company anticipates sustained growth fueled by the continued momentum of its refreshed card offerings and a robust customer engagement strategy. With ongoing enhancements to its product portfolio, AmEx is well-positioned to navigate the competitive landscape and meet its ambitious financial targets for the year.