StocksRunner logo
search
 
menu
 
 

American Express Beats Earnings Stock Jumps on Strong Results

 
  • user  bullish.beats
  •  
     
      
     
     
     

    Streaking.Winners tracks stocks achieving consecutive gains, focusing on consistent performers and market momentum to keep investors informed.

     
 
  • like  17 Oct 2025
  •  
 
 

Stock Moves Since

 
 
 

$AXP American Express Co reported third-quarter earnings that exceeded analyst expectations, with the stock climbing 7.21% as investors celebrated the company's strong financial performance. The credit card giant posted earnings of $4.14 per share on revenues of $18.4 billion, surpassing Wall Street forecasts of $4.00 per share and $18 billion in revenue.

The results highlight a critical question many investors have been asking: are consumers still spending despite economic uncertainty? For American Express, the answer is a resounding yes. Cardholder spending increased 9% during the quarter, driven primarily by affluent customers who continue to open their wallets for travel, dining, and entertainment experiences. This spending resilience offers valuable insights into the health of the premium consumer segment.

Total billed business reached $421 billion for the quarter, marking a 9% year-over-year increase. These figures matter because they demonstrate that AXP core customer base remains financially healthy and engaged. Unlike mass-market credit card issuers who often struggle when economic conditions tighten, American Express benefits from serving high-income earners who maintain spending habits even during periods of uncertainty.

Travel and hospitality spending proved particularly strong, with customers actively booking flights, hotels, and restaurant reservations. This spending pattern suggests that affluent consumers continue prioritizing experiences over material goods, a trend that has accelerated since the pandemic. For AXP, which has historically positioned itself as the card of choice for travelers and dining enthusiasts, this trend plays directly to its strengths.

The company achieved a notable success with its recently refreshed Platinum Card product. After introducing enhanced benefits and raising annual fees, American Express saw new Platinum Card enrollments double compared to the previous product launch. This outcome answers an important question about consumer behavior: will customers pay more for premium credit card benefits? The data clearly shows they will, provided the value proposition is compelling enough.

Chief Executive Stephen Squeri noted that customer demand and engagement exceeded the company's expectations. His comments reflect a broader strategic vision focused on deepening relationships with existing customers while attracting new members who value premium services. This approach has helped AXP maintain its competitive position even as the credit card market becomes increasingly crowded.

The strong quarterly performance led American Express to raise its full-year guidance for 2025. The company now expects revenue growth between 9% and 10%, up from its previous forecast of 8% to 10%. More importantly for shareholders, AXP increased its earnings per share outlook to a range of $15.20 to $15.50, compared to the prior guidance of $15.00 to $15.50 per share. These upward revisions signal management confidence in sustained business momentum.

Credit quality remains a crucial concern for anyone evaluating financial services companies, and here American Express delivered reassuring news. The delinquency rate for credit card loans past due more than 30 days held steady at 1.4%, unchanged from last year. Write-off rates also remained stable, indicating that AXP customers continue managing their credit responsibly.

What explains this credit stability? The answer lies in American Express's customer demographics. By focusing on affluent consumers and established businesses, the company maintains a portfolio of borrowers with stronger financial profiles and more stable income sources. This strategic positioning provides a natural hedge against credit deterioration that often affects mass-market lenders during economic downturns.

Provisions for credit losses totaled $1.3 billion, actually declining from $1.4 billion in the same quarter last year. Meanwhile, net interest income grew 12% to reach $4.5 billion. These metrics demonstrate that AXP is not only maintaining credit quality but also growing its lending business profitably.

The company's recent success stems from years of strategic investments in technology, digital services, and personalized rewards programs. American Express has worked to create an ecosystem where cardholders receive tailored benefits that match their spending patterns and lifestyle preferences. This personalization helps drive engagement and encourages customers to consolidate more of their spending on AXP cards.

For small and medium-sized businesses, American Express has expanded its offerings to provide not just payment solutions but also tools for expense management, employee cards, and business insights. This comprehensive approach helps the company capture a larger share of business spending while providing genuine value that justifies premium fees.

The travel sector revival has been particularly beneficial for American Express. As business travel rebounds and leisure travelers return to pre-pandemic booking levels, AXP cardholders are taking advantage of travel benefits including airport lounge access, hotel status upgrades, and statement credits for travel purchases. These perks create switching costs that help retain customers even as competitors launch their own premium card offerings.

Looking ahead, several factors support continued growth for American Express. The premium consumer segment shows resilience despite broader economic concerns. Business travel continues recovering toward historical levels. The company's brand strength and loyalty programs create meaningful competitive advantages. Technology investments are improving customer experience and operational efficiency.

Investors considering AXP stock should weigh several considerations. The company has demonstrated an ability to grow revenues and earnings consistently while maintaining credit discipline. Its focus on affluent customers provides insulation from economic volatility that impacts mass-market competitors. The successful Platinum Card refresh shows that AXP can innovate and command premium pricing in a competitive market.

The raised guidance for 2025 reflects management confidence backed by tangible business trends. With revenues expected to grow up to 10% and earnings per share reaching as high as $15.50, American Express is delivering the kind of predictable growth that appeals to both value and growth investors. The 7% stock price jump following the earnings announcement suggests the market agrees with this positive assessment.

For those wondering whether premium spending will hold up, American Express provides a clear window into this demographic. The sustained 9% growth in cardholder spending, combined with stable credit metrics, indicates that high-income consumers remain in strong financial shape. This bodes well not just for AXP but for other companies serving the premium market segment.

As stock of the day, American Express exemplifies what investors seek: consistent execution, strategic clarity, and financial results that exceed expectations while managing risk effectively.

 
 

Unlock Exclusive Stock Insights!

Join StocksRunner.com for daily market updates, expert analyses, and actionable insights.

Signup now for FREE and stay ahead of the market curve!


Why Join?

Find out what 10,000+ subscribers already know.

Real-time insights for informed decisions.

Limited slots available, SignUp Now!

 
Signup to Stocksrunner
 
 
 

Please note that the content above should not be considered as investment advice or marketing. It does not take into account the personal data and requirements of any individual. This content is not a substitute for the reader's own judgment and should not be considered as advice or a recommendation for buying or selling any securities or financial products.

 
 
StocksRunner

Get all the pieces of the puzzle on important data activity before the major news sources break the story and find out what happening right now and what could happen in the future

 

FIND US ON

StocksRunner on Facebook StocksRunner on Twitter StocksRunner on YouTube StocksRunner on stocktwits StocksRunner Rss
 

Receive Our Daily Alerts

Join over 10,000+ subscribers who value exclusive insights. Stay ahead in the stock market! Enter your email for daily alerts

 
Our Services

Real-time stock market updates

Expert stock analysis

Investment strategies

Top stock recommendations

Trading signals and opportunities

 
About StocksRunner

Log In

Sign Up

Plans & Pricinig

Contact Us

Terms of use

Privacy Policy

 
 
 
StocksRunner

Discover what is happening right now and piece together the key data activity before the major news outlets catch on. Stay ahead of the trends

FIND US ON

StocksRunner on Facebook StocksRunner on Twitter StocksRunner on YouTube StocksRunner on stocktwits StocksRunner Rss

 

Subscribe to Our Daily Updates

Unlock the knowledge that 10,000+ subscribers already cherish. Join for exclusive insights and stay ahead in the stock game! Enter your email to receive daily alerts

 
Market trends

In-depth stock analysis

Informed investment decisions

Stock market insights

Stock trading tips

Stocks analysis

Stocks trends

Stocks performance

Stocks analysis

Investment strategies

Stock strategies

Trading strategies

StocksRunner updates

StocksRunner Insights

Financial Reports

 
 

Disclaimer: The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.

Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").

This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.

 
 
StocksRunner logo