American Express (AXP 1.96%) reported Q2 2025 results on July 18, with revenues of $17.9 billion (up 9% year over year) and earnings per share of $4.08 (up 17% excluding last year's gain from the sale of Certified). The company reaffirmed its full-year revenue growth guidance range of 8% to 10% and EPS guidance of $15 to $15.50, while highlighting record net card fees, a strong premium portfolio, and the impending refresh of U.S. Platinum cards.
Premium Portfolio Drives Record Fee and Loan Growth
Net card fees reached a new high, up 20% on an FX-adjusted basis, and fee revenue has more than doubled since 2019, driven primarily by premium product penetration and strong retention.
"We continue to see strong momentum in net card fees, which reached record levels and were up 20% effect adjusted again this quarter. The exceptional growth we've seen in card fees over the past several years, averaging 17% per year since 2019, really speaks to our strategy as we increase our focus on the premium space. This is the result of, first, acquiring new customers onto fee-based products, then driving strong retention of our customer base. And finally, consistently increasing value through product refreshes and pricing accordingly. The result is a net card fee line that has more than doubled since 2019."
— Christophe Le Caillec, Chief Financial Officer
Premium-led growth in fee-based products and resilience across customer cohorts reinforces the predictability of recurring revenue streams and enhances the long-term stability of the business amid broader economic cycles.
Strategic Resilience Demonstrated in Fed Stress Test and Capital Return
The company’s Common Equity Tier 1 (CET1) ratio was 10%, with a stress capital buffer at the regulatory minimum (2.5%), which enabled it to return $2 billion in capital to shareholders through dividends and buybacks. The results of the Federal Reserve's Comprehensive Capital and Analysis Review (CCAR), disclosed in July, confirmed both the highest profitability (return on assets) and lowest projected credit card loss rate among all CCAR-subjected banks.
"The results once again demonstrated that we had the lowest projected credit card loss and highest profitability rates under the Fed stress test among all banks subject to CCAR. Results were a testament to the earnings power of our resilient business model and our strong capital position."
— Stephen Squeri, Chairman and Chief Executive Officer
Superior credit performance and efficient capital allocation empower American Express to pursue shareholder returns while maintaining ample regulatory headroom, validating the competitive edge of its focused, high-quality lending strategy.
International Expansion Unlocks Long-Term Growth Opportunity
International business achieved 12% FX-adjusted revenue growth, supported by accelerated merchant acceptance and premium product adoption, particularly in five core markets under the targeted city strategy. Premium product pricing internationally generally exceeds U.S. levels, while overall international share remains comparatively low, highlighting further untapped potential.
"We talk about our city strategy, and that's on track from a coverage perspective. And you know, we continue to add millions and millions of merchants international, and we will continue to do that. ... I think when you look at our share internationally, it's very, very low. And the other part about it, when you look at small business, which I think there's big opportunity for us in small business, it really is a market that's really nascent at this point. So we're very excited about international, and you know, we're getting those growths with coverage that is still improving."
— Stephen Squeri, Chairman and Chief Executive Officer
Expanding international acceptance and merchant coverage, combined with rising premium portfolio adoption and nascent small business penetration, support a multiyear secular growth runway outside the U.S. that is largely independent of current domestic competitive dynamics.
Looking Ahead
Management reaffirmed its full-year guidance of 8% to 10% revenue growth and EPS of $15 to $15.50, including anticipated increases in variable customer engagement expenses (VCE) and operating expenses as premium product refreshes roll out, as discussed in the context of full-year guidance. The upcoming U.S. Consumer and Business Platinum card refreshes are expected to drive further product-led revenue upside, with card fee growth expected to moderate through Q4 2025 before accelerating in 2026. No additional quantitative or strategic milestones beyond these explicit forward statements were provided.
