American Express Company (NYSE: AXP) has released its financial results for the third quarter of 2025, showcasing impressive growth fueled by affluent cardholder spending. With shares trading at $323.12 as of market close on October 16, 2025, the company saw its stock rise 1.45% in pre-market trading, reaching $327.85 and pushing its market valuation to $224.85 billion.
The New York-based financial services giant reported a remarkable 16% year-over-year profit increase, generating $2.9 billion in net income compared to $2.51 billion in the same quarter last year. Earnings per share also exceeded expectations, coming in at $4.14, surpassing the analysts’ consensus estimate of $4.00. Revenue climbed 11.8% to $13.94 billion, beating the anticipated $13.45 billion.
American Express attributed this growth to a surge in card spending, particularly among its wealthiest members, and consistent engagement with premium products. CEO Steve Squeri noted that the strong demand for the revamped Platinum Card played a pivotal role in driving Q3 momentum. Following a recent refresh of the card, which included a fee increase to $895, the company received over 500,000 requests for the new design within just three weeks. Squeri emphasized that initial customer engagement had exceeded expectations, with new U.S. Platinum account acquisitions doubling compared to pre-refresh levels.
High-Net-Worth Customers Boosting Revenue
Despite heightened competition from financial rivals such as JPMorgan Chase and Citigroup, which have also updated their premium offerings this year, American Express has managed to retain strong loyalty among affluent users. This loyalty has been instrumental in supporting revenue and margin growth.
Furthermore, American Express reported a pre-tax profit of $3.83 billion, representing a 27.4% margin and a year-over-year growth of 19.4%. The total card volume reached $479.2 billion, surpassing expectations of $472 billion and reflecting an 8.7% annual increase. Analyst sentiment remains bullish, as RBC Capital raised its price target for AXP to $380, citing robust earnings growth.
Strategic Developments
In addition to strong earnings, American Express introduced Amex Ads, a new digital advertising platform targeting its 34 million U.S. Consumer Card Members. The platform is set to launch on AmexTravel.com before expanding to other digital channels, signaling a strategic move to enhance user engagement.
On the regulatory front, the Reserve Bank of India imposed a fine of 3.18 million rupees on the company for non-compliance with card issuance norms. Additionally, Vice Chairman Douglas E. Buckminster announced his planned retirement in March 2026, marking a notable shift in the company’s leadership.
Market Performance and Outlook
As of October 16, 2025, AXP shares have increased by 10.04% year-to-date, trailing the S&P 500’s 12.71% gain. However, over the last five years, AXP has delivered a remarkable 227.62% return, significantly outperforming the market’s 90.28% increase. With continued strong spending, consistent dividend growth, and expansion into digital advertising, American Express appears well-positioned to maintain its earnings momentum as it heads into 2026.
