American Express delivered quarterly results ahead of Wall Street expectations, prompting a positive market response. Management attributed the quarter’s momentum to accelerating cardmember spending, a resurgence in travel activity, and continued strength in retail categories. CEO Stephen Squeri highlighted the recent refresh of the U.S. Platinum Card as a primary driver, noting that “initial customer demand and engagement are exceeding our expectations.” The company also pointed to excellent credit performance and stable delinquency rates supporting profitability.
Is now the time to buy AXP? Find out in our full research report (it’s free for active Edge members).
American Express (AXP) Q3 CY2025 Highlights:
- Revenue: $13.82 billion vs analyst estimates of $13.45 billion (10.8% year-on-year growth, 2.8% beat)
- Adjusted EPS: $4.14 vs analyst estimates of $3.98 (4% beat)
- Adjusted Operating Income: $3.83 billion vs analyst estimates of $5.01 billion (27.7% margin, 23.6% miss)
- Operating Margin: 27.7%, up from 25.7% in the same quarter last year
- Market Capitalization: $244.5 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From American Express’s Q3 Earnings Call
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Sanjay Sakhrani (KBW) asked whether the acceleration in cardmember spending could continue if macroeconomic conditions remain stable. CEO Stephen Squeri replied that while recent billings showed improvement, management is not anticipating further acceleration but also does not expect a slowdown.
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Ryan Nash (Goldman Sachs) inquired about the near-term impact of the Platinum refresh on card fees and expenses. CFO Christophe Le Caillec explained that benefit expenses are immediate, while card fee revenue is recognized over a year, but the investment aligns with long-term profit growth goals.
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Donald Fandetti (Wells Fargo) questioned the sustainability of growth in small and medium-sized business segments amid increased fintech competition. Squeri said acquisition and organic growth trends remain positive, and the firm is responding with targeted product launches and integrations.
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Craig Maurer (FT Partners) sought details on whether the Platinum refresh is attracting customers from competitors or driving internal upgrades. Squeri responded that it’s too early to determine the mix but noted strong upgrades and new acquisitions.
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Mihir Bhatia (Bank of America) asked how American Express evaluates the effectiveness of its $6 billion annual marketing spend. Le Caillec said the company rigorously assesses return on investment and continually reallocates spending to the most efficient channels and products.
Catalysts in Upcoming Quarters
In future quarters, our analyst team will closely monitor (1) the pace of new card acquisitions and engagement following the Platinum refresh, (2) the rollout and adoption of new digital capabilities for both consumer and commercial segments, and (3) retention rates as higher annual fees take effect. Progress in expanding international merchant coverage and maintaining credit discipline will also be key markers of execution.
American Express currently trades at $354.50, up from $323.15 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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