American Express beats Q3 expectations, raises full-year guidance

Investing.com -- American Express (NYSE: AXP) reported third-quarter earnings that exceeded analyst expectations, with revenue climbing 11% to a record $18.43 billion compared to the consensus estimate of $18.05 billion. The credit card giant posted earnings per share of $4.14, beating analyst projections of $3.99.

The company’s strong performance was driven by accelerated card member spending, which grew 9%, or 8% on an FX-adjusted basis. Net income rose 16% to $2.9 billion compared to $2.5 billion in the same quarter last year, while earnings per share increased 19% from $3.49 a year ago.

American Express shares edged up 1% following the announcement, as investors responded positively to the results and raised guidance.

"We delivered a very strong quarter, with revenues growing 11 percent year-over-year to a record $18.4 billion, and EPS rising 19 percent to $4.14," said Stephen J. Squeri, Chairman and Chief Executive Officer. "Card Member spend growth accelerated to 8 percent on an FX-adjusted basis, and our credit metrics remained best-in-class."

The company’s credit metrics showed improvement, with provisions for credit losses decreasing to $1.3 billion from $1.4 billion a year ago. The third-quarter net write-off rate remained stable at 1.9%.

American Express raised its full-year 2025 guidance, now expecting revenue growth of 9% to 10% and EPS of $15.20 to $15.50. The midpoint of the new EPS guidance ($15.35) is slightly above the analyst consensus of $15.34.

The company also reported strong early results from its refreshed U.S. Platinum Card, with new account acquisitions doubling compared to pre-refresh levels.

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