American Express (NYSE: AXP) reported first-quarter results that beat analyst expectations, supported by continued growth in card member spending and stable credit performance.
The company posted adjusted earnings per share of $3.64, surpassing the consensus estimate of $3.48. Revenue matched expectations at $17 billion, reflecting a 7% year-over-year increase.
Card member spending rose 6% from the prior year to $387.4 billion, contributing to a 6% increase in net income, which reached $2.6 billion. Credit metrics remained solid, with provisions for credit losses declining to $1.2 billion from $1.3 billion a year earlier. The net write-off rate held steady at 2.1%.
American Express maintained its full-year 2025 guidance, forecasting revenue growth between 8% and 10% and earnings per share in the range of $15.00 to $15.50. These projections are consistent with the company’s outlook issued earlier this year.
Operating expenses increased 10% year-over-year to $12.5 billion, driven by higher customer engagement costs and greater use of travel-related benefits, reflecting continued demand for the company’s premium offerings.
The results underscore American Express’s ability to leverage its affluent customer base and premium product strategy to deliver steady growth, even as expenses trend higher.
Currently, the company has a consensus rating of “Overweight”, with an average price target of $294.74, implying a nearly 16% potential upside from the current stock price.
As of press time, American Express (NYSE: AXP) stock is up 0.02%, trading at $251.35.
