American Express (NYSE:AXP) executives pointed to another year of double-digit revenue growth and steady credit performance as the company closed out 2025, while offering 2026 guidance that reflects continued momentum in premium products and ongoing investment in technology and cardmember value propositions.
2025 results: record revenue and higher EPS ex-Accertify
Chairman and CEO Steve Squeri said the company delivered “another year of strong performance,” noting that full-year revenue rose 10% to a record $72 billion. Earnings per share were $15.38, up 15% from the prior year excluding an Accertify gain. Squeri also highlighted what he described as “excellent credit quality” and continued investment to strengthen the company’s membership model.
Spending trends and customer mix
Le Caillec said billed business in the fourth quarter increased 8% on an FX-adjusted basis, consistent with the third quarter. He described both goods and services and travel and entertainment (T&E) as growing faster than in the first half of the year.
- Retail spending rose 10% in the quarter, and luxury retail spending increased 15%, which management said reflected the strength of its customer base.
- Restaurant spending was up 9% again in the quarter, and spend at U.S. Resy restaurants by U.S. consumer customers rose by more than 20%.
- International spend climbed 12% FX-adjusted, which management characterized as broad-based across consumer and business customers and geographies.
- Transactions growth was 9%, consistent with trends seen throughout the year.
Management also emphasized continued traction with younger customers. Le Caillec said that as of the fourth quarter, Millennials and Gen Z made up the largest share of U.S. consumer spending and remained the fastest-growing cohorts. He cited an average age of 33 for new U.S. Consumer Platinum customers and 29 for new U.S. Consumer Gold customers.
Looking at the start of 2026, Le Caillec said spend trends in the first three weeks of January showed “good momentum.”
Premium push, product refreshes, and marketing reallocation
Executives spent significant time on the company’s product refresh strategy, particularly the U.S. Consumer and Small Business Platinum cards. Squeri said the company refreshed products in close to a dozen countries and renewed and expanded co-brand partnerships, naming British Airways, ANA, and Air France KLM. He also cited expansion of lounge assets, growth in the hotel network, a partnership with Toast, and new cardmember experiences. American Express ended the year with acceptance at more than 170 million locations worldwide, according to Squeri.
On acquisition strategy, management addressed questions about net new cards acquired and the decision to shift marketing dollars. Squeri said the company redirected marketing investment away from lower-cost cash back products toward premium products after seeing strong demand for Platinum. He framed the approach as focusing on acquiring revenue rather than maximizing card counts.
Le Caillec added that the mix of fee-paying products improved: the percentage of fee-paying products within U.S. Consumer new card acquisitions rose by 8 percentage points year over year, a change he said was not directly visible in the headline numbers but reflected improving marketing efficiency.
In response to questions about the impact of product refreshes on engagement, Squeri said existing customers tend to adopt new benefits more slowly than new customers, but uptake can happen quickly. He cited engagement with benefits including Lululemon, Resy, and a hotel credit. He also said a “Platinum app” experience made it easier to enroll in benefits, and stated that travel bookings were up 30% in the fourth quarter, which he attributed directly to the Platinum launch and cardholder engagement.
Credit, balance growth, and expense outlook
Le Caillec said loans and cardmember receivables increased 7% year over year on an FX-adjusted basis, with about a one percentage point impact from held-for-sale portfolios. He said the company expects loans and receivables to grow largely in line with billed business in 2026.
On credit, he described performance as “remarkably strong and stable,” with delinquency rates flat throughout the year and write-off rates “best in class.” He also noted that both delinquency and write-off rates remained below 2019 levels. For 2026, management expects credit metrics to remain generally stable with seasonal variation in provisions.
Revenue growth was described as broad-based. Le Caillec said revenue rose 10% in both the fourth quarter and full year, with net card fees, net interest income (NII), and service fees and other revenue all growing at double-digit rates. Net card fees in the fourth quarter rose 16% FX-adjusted, which he said moderated as expected. For 2026, the company expects card fee growth to pick up as the year progresses, exiting the year in the high teens as more U.S. Platinum cardmembers renew at the new annual fee. He said the company had seen no change in retention rates as the new fee began applying at renewal anniversaries.
NII rose 12% in the quarter, and Le Caillec said the company expects NII growth to continue to outpace growth in loans and receivables in 2026.
On costs, Le Caillec said the value of card member engagement (VCE) to revenue ratio was 45% in the fourth quarter, stepping up from earlier in the year due to increased investment in U.S. Platinum value propositions. For 2026, the company expects the VCE-to-revenue ratio to be around 44%, assuming a similar spending environment, reflecting ongoing investment and mix shift toward premium products.
He said operating expenses as a percentage of revenue are down 4 points since 2022, even with technology spending up 11% in 2025. For 2026, American Express expects operating expenses to grow in the mid-single digits. Marketing expense totaled $6.3 billion in 2025, up 4% year over year, and is expected to rise in the low single digits in 2026.
Capital returns and 2026 guidance
Le Caillec said American Express produced a 34% return on equity for the full year and returned $7.6 billion to shareholders, including $2.3 billion in dividends and $5.3 billion in share repurchases. The company said it plans to raise its quarterly dividend by 16% to $0.95 per share in 2026, aligning with a 20% to 25% target payout ratio. Management also said the dividend would be up more than 80% since 2022 and that share count has been reduced by 7% since then.
For 2026, management guided to revenue growth of 9% to 10% and earnings per share of $17.30 to $17.90. Squeri said the company’s outlook reflects confidence in the “strength and stability” of its premium customer base and the momentum from continued investment, while emphasizing flexibility to reallocate resources toward higher-return opportunities.
About American Express (NYSE:AXP)
American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.
American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.
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