American Express (AXP) delivered a strong performance in the second quarter of 2025, achieving record revenues of $17.86 billion, up 9% year-over-year, driven by robust card member spending, solid demand for premium products, and stable credit trends. Despite a headline decline in net income to $2.89 billion (down 4%), this reflects a tough comparison to the prior year's gain from the sale of Accertify. Excluding that, adjusted EPS rose 17%, underscoring underlying earnings strength.

Card member engagement remained high, with billed business reaching $416.3 billion, a 7% increase. Growth was led by Goods & Services spending, up 8%, while Travel & Entertainment spend rose 6%, supported by strong restaurant activity. Premium product momentum remained a standout, with net card fees surging 20%, reflecting high new card acquisitions—3.1 million proprietary cards in the quarter—and strong customer retention, particularly among Millennials and Gen-Z.

Segment-wise, U.S. Consumer Services posted $8.55 billion in revenue and $1.68 billion in pretax income, buoyed by younger consumer spending and 11% growth in net interest income. Commercial Services revenue grew 7%, with a notable 27% increase in net interest income, though pretax income was flat. International Card Services delivered standout results with 15% revenue growth and 60% growth in pretax income, driven by broad-based strength across geographies. The Global Merchant and Network Services segment grew revenue 3%, though pretax income declined 31% due to higher expenses and the absence of the prior-year gain.

Credit quality remained best-in-class, with net write-offs at 2.0% and delinquencies stable at 1.3%. While provisions for credit losses rose to $1.41 billion, this reflected higher loan growth and reserves rather than any deterioration in quality. The company’s Common Equity Tier 1 (CET1) ratio of 10.6% stayed within its target range, and return on equity stood at 36.3%.

American Express continues to prioritize investments in technology, risk management, and product innovation. Operating expenses rose 14%, aligned with its strategy to support long-term growth, while $2.0 billion was returned to shareholders during the quarter through buybacks and dividends, the latter increasing 17% year-over-year.

CEO Stephen Squeri emphasized the company’s confidence in its premium-focused strategy and reaffirmed guidance for full-year revenue growth of 8–10% and EPS between $15.00 and $15.50. Despite macroeconomic headwinds, AXP’s resilient spend-centric model, premium customer base, and disciplined financial management position it well for continued growth.