American Express Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Revenue and Earnings Growth: American Express reported full-year revenues of $72 billion for 2025, marking a 10% increase, with EPS at $15.38, up 15% year-over-year, indicating strong performance in the premium market and sustained customer demand.
- Dividend Increase and Investment Plans: The company announced a 16% increase in its quarterly dividend to $0.95, reflecting confidence in future growth, while targeting revenue growth of 9% to 10% and EPS of $17.30 to $17.90 for 2026.
- Marketing Strategy Shift: Management redirected marketing resources towards U.S. Platinum products due to strong demand observed at year-end, which is expected to enhance customer engagement and retention, thereby driving revenue growth.
- Credit Quality and Expense Control: Despite macroeconomic risks, the company maintains strong credit standards with flat delinquency rates, and operating expenses are projected to grow in the mid-single digits in 2026, demonstrating ongoing focus on cost control.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXP is 373.63 USD with a low forecast of 280.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
7 Buy
13 Hold
1 Sell
Moderate Buy
Current: 358.500
Low
280.00
Averages
373.63
High
425.00
Current: 358.500
Low
280.00
Averages
373.63
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
American Express Launches New Platinum Business Card
- High-End Market Focus: American Express has shifted its marketing focus to the $895 annual fee Platinum card, aiming to boost overall spending levels among affluent consumers, which in turn increases fee revenue from premium cards and lowers loan defaults.
- Luxury Spending Surge: Data shows that spending at luxury retailers surged 15% in the quarter, with business and first-class airfare purchases rising 9% and luxury hotel spending increasing by 12%, indicating strong spending power among wealthy cardholders.
- Card Growth Slowing: New card accounts hit 2.9 million at year-end, a decline from the third quarter, reflecting competitive pressures and consumer fatigue over high fees as the company focuses on more profitable card products.
- Earnings Miss Expectations: American Express reported earnings per share of $3.53, slightly below consensus estimates, partly due to $14.5 billion in expenses related to the Platinum refresh, although the company maintains that the product launch was highly successful.
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American Express Shifts Marketing Focus to Premium Products Amid Economic Trends
- Strategic Shift: American Express has redirected marketing dollars from no-fee cash back cards to its refreshed Platinum card, which carries an $895 annual fee, aiming to boost spending among high-end consumers, thereby increasing fee revenue from premium cards and reducing loan defaults.
- Luxury Spending Surge: Data reveals that spending at luxury retailers surged 15% in the fourth quarter, with business and first-class airfare purchases rising 9% and luxury hotel spending up 12%, indicating that affluent customers continue to drive strong performance for the company.
- Slowing Card Growth: Despite the perceived success of the Platinum card relaunch, new card accounts fell to 2.9 million at year-end, a decline from the third quarter, suggesting that the focus on more profitable card products may be contributing to an overall slowdown in card growth.
- Profitability Impact: American Express reported fourth-quarter earnings per share of $3.53, slightly below market expectations, partly due to higher-than-expected expenses of $14.5 billion driven by the costs associated with the Platinum refresh, indicating that while demand for premium products remains strong, it has not significantly boosted new account growth.
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