American Express released its second-quarter 2025 results, showcasing record-breaking earnings and a surge in spending among affluent Americans. The company reported $17.9 billion in quarterly revenue, up 9% year-over-year, driven by total Card Member spending that increased 7% to a new high of $416.3 billion.
The business model skewed towards premium customers renders these numbers as a barometer for upper-income Americans’ financial confidence and willingness to spend. With renewed appetite for premium products and experiences, the company is expanding its luxury offerings, despite critics claiming the “premium card” phenomenon to be cyclical or overhyped.
Notably, expenses rose 14% year-over-year due to technology investments and expanded risk management. However, American Express reaffirmed its outlook of 8-10% revenue growth and full-year earnings per share of $15-$15.50.
Momentum was particularly strong among millennials and Gen Z, who are embracing the brand’s luxury value proposition. Their spending rose 10% and 40%, respectively, with net card fees increasing by 20%. The company’s strategy to acquire new customers onto fee-based products and drive retention is yielding positive results, as CFO Christophe Le Caillec mentioned.
To cater to this growing demand, American Express plans a significant refresh of its U.S. Consumer and Business Platinum Cards this fall and launched the new Coinbase One Card on the Amex network, targeting younger, high-earning professionals seeking digital assets.
The company’s financial health is robust, with a projected credit card loss rate among the lowest in class. CEO Steve Squeri highlighted the need to innovate airport lounges to accommodate the growing demand, emphasizing a “speakeasy-like” experience for customers.
Overall, American Express appears to have a “long runway for growth” as the premium segment continues to expand.
Source: https://fortune.com/2025/07/18/american-express-earnings-millennials-gen-z-wealth-affluent-spending