American Express delivered what can reasonably be considered a strong earnings report for the second quarter of 2025, marked by a record high in quarterly revenue and resilient consumer spending trends. While headline EPS ticked down slightly by 2% to $4.08 from $4.15 a year earlier, that number is somewhat misleading without context. The prior year’s quarter included a $0.66 one-time gain from the sale of Accertify; adjusting for this, the underlying earnings per share actually rose 17% year-over-year, indicating robust operating performance beneath the surface.
The company’s revenue climbed to $17.9 billion, up 9% year-over-year, driven by a combination of increased Card Member spending, which hit a new quarterly high at $416.3 billion, and higher net interest income stemming from growth in revolving balances. Premium product demand continues to fuel the revenue mix, and the firm’s long-standing strategy of maintaining a differentiated, membership-based model with premium incentives is bearing fruit. The reaffirmation of full-year guidance—calling for revenue growth between 8% and 10% and EPS between $15.00 and $15.50—further reflects confidence from management in their trajectory through the rest of the year.
From a balance sheet and risk perspective, credit quality remained stable and best-in-class according to the Federal Reserve’s 2025 stress test results. Provisions for credit losses increased modestly to $1.4 billion, primarily due to growth in receivables rather than deterioration in creditworthiness. The net write-off rate actually improved slightly to 2.0%, compared to 2.1% a year ago, which reinforces the view that AmEx has been prudent in credit risk management even as spending volume surges. The 14% rise in total expenses—reaching $12.9 billion—was largely anticipated, given the absence of last year’s Accertify windfall and the company’s planned increases in technology investment and customer engagement.
Strategic updates also offer future upside. The upcoming fall refresh of U.S. Consumer and Business Platinum Cards indicates a renewed push into the high-end market segment, while the announcement of a partnership to launch the Coinbase One Card on the AmEx network suggests a forward-looking approach to fintech integration. Adding to this momentum, American Express received top honors from J.D. Power for customer satisfaction in both mobile app and website categories, and it ranked fourth on the 2025 Best Companies to Work For® list, which could have positive implications for both brand loyalty and talent retention.
Despite a modest dip in net income from $3.0 billion to $2.9 billion, the broad-based gains in customer engagement, core earnings power, and top-line expansion make this a fundamentally strong quarter for American Express. Investors and analysts looking past the optical decline in GAAP EPS will likely view the consistent operating leverage and reaffirmed outlook as key positives. American Express appears well-positioned not only to sustain its leadership in the premium card space but also to extend its moat through strategic innovation and strong execution.
Shares of American Express (NYSE: AXP) are likely to rise following this second-quarter 2025 earnings report, though the magnitude of the move will depend on broader market sentiment and investor expectations heading into the release. Fundamentally, this is a strong report: revenue set a quarterly record at $17.9 billion, adjusted EPS rose 17% year-over-year (excluding last year’s Accertify gain), and full-year guidance was reaffirmed. These are the kinds of signals that typically support bullish investor reaction—especially in a market that rewards consistency and resilience.
What makes this report especially favorable is the strength in underlying business trends. Billed business rose 7%, premium product demand remains high, and the company is showing solid growth in card fee income and net interest income. These trends indicate that American Express is not just weathering the current macroeconomic environment, but actively capitalizing on it—particularly through its affluent customer base, which is still spending strongly on travel, dining, and lifestyle categories.
Moreover, American Express continues to perform exceptionally well on credit quality metrics. Despite growing its loan book, the company maintained a net write-off rate of just 2.0%, better than most major peers. And in the Federal Reserve’s 2025 stress test, AmEx was highlighted for having the lowest projected credit card loss rate and highest projected return on assets. This bolsters investor confidence that the firm is managing risk effectively even as it grows.
That said, there are a few nuances. The GAAP EPS decline of 2% might appear negative at a glance, but most investors and analysts are aware of the Accertify gain distorting that comparison. Expense growth of 14% could raise a few eyebrows, but given that it’s tied to strategic investments and variable rewards spending, it’s unlikely to be seen as a red flag.
Overall, the positive signals outweigh any minor concerns. This report underscores operating strength, disciplined risk management, and strategic clarity—all of which support share price appreciation. Unless the market was expecting a dramatic beat well beyond these solid results, the report should be seen as a reaffirmation of the company’s upward trajectory. If broader market conditions are stable, AXP shares should respond positively in the near term.