TLDR
- American Express reported Q1 2025 EPS of $3.64, beating estimates by 5.5%.
- Revenue grew 8% year over year on an FX-adjusted basis, reaching $17 billion.
- 3.4 million new cards were added, with Millennials and Gen-Z accounting for over 60%.
- Return on Equity hit 34%, while card fee growth remained strong at 20%.
- 2025 guidance reiterated: revenue growth of 8–10%, EPS between $15 and $15.50.
American Express Co. (NYSE: AXP) delivered an upbeat Q1 2025 performance with earnings per share of $3.64, topping the Zacks Consensus Estimate by 5.5%. Net income reached $2.6 billion, supported by increased consumer spending and continued growth in its premium customer base.
Revenue came in at $17 billion, reflecting an 8% year-over-year increase on a foreign exchange-adjusted basis, or 9% when excluding the leap year effect. While total revenue missed analyst expectations by a slight 0.2%, the company’s consistent card fee growth and expanding customer base highlight solid operational momentum. At close, April 17 at 4:00:02 PM EDT, the stock traded at $251.31 (-0.64%).
American Express (AXP)
Premium Consumer Growth
The company added 3.4 million new cards during the quarter. Millennials and Gen-Z made up over 60% of new consumer accounts globally. Card fee income grew 20% on an FX-adjusted basis, marking the 27th consecutive quarter of double-digit growth in this area.
Total billed business increased 7.5% year over year. Consumer services revenue rose 10%, supported by a strong U.S. customer base. Meanwhile, spending on travel and entertainment continued to contribute meaningfully, despite a slight slowdown in airline-related purchases.
Segmental Breakdown
The U.S. Consumer Services segment reported $1.7 billion in pre-tax income, up 7% year over year. International Card Services stood out with a 51% jump in pre-tax income to $381 million. This segment saw a 14% increase in card member spend and 8% growth in net revenues.
On the commercial side, results were more tempered. The Commercial Services segment earned $836 million in pre-tax income, down 5% from the previous year. This reflected only modest 3% growth in business spending, consistent with trends seen in 2024.
Global Merchant and Network Services saw a 3% decline in revenue, generating $1.8 billion, while pre-tax income dropped by the same margin. The Corporate segment narrowed its pre-tax loss slightly to $609 million.
Balance Sheet and Capital Returns
As of March 31, 2025, American Express held $52.5 billion in cash and equivalents, up from $40.6 billion at the end of 2024. Long-term debt increased modestly to $51.2 billion.
The company returned $1.3 billion to shareholders during the quarter—$700 million in share buybacks and $600 million in dividends. The CET1 ratio stood at 10.7%, comfortably within the targeted range of 10–11%. Return on equity was an impressive 34%, just shy of last year’s 35.9%.
2025 Outlook Reaffirmed
Management reaffirmed its 2025 guidance, projecting revenue growth between 8% and 10%. EPS is expected to land between $15 and $15.50, pointing to mid-to-high single-digit growth from the 2024 figure of $14.01.
American Express continues to target long-term revenue growth of over 10%, with mid-teens annual EPS expansion. Though macroeconomic uncertainty and currency headwinds remain concerns, the company’s premium positioning, strong card fee momentum, and disciplined capital management suggest a stable path forward.
