American Express Q1 2025 Earnings Beat Wall Street Estimates, Company Maintains Full-Year Guidance

Shares of American Express Co. (AXP) drew investor attention on Thursday after the company reported upbeat first-quarter earnings.

Total revenue rose 7% year-over-year (YoY) to $16.97 billion, surpassing a Wall Street estimate of $16.93 billion, primarily driven by higher net interest income (NII) supported by growth in revolving loan balances, increased card member spending, and continued strong card fee growth.

Earnings per share (EPS) stood at $3.64, topping an analyst estimate of $3.47. Net income rose 6% YoY to $2.58 billion.

American Express reported a decrease in its consolidated provisions for credit losses to $1.2 billion compared to $1.3 billion a year ago. The fall reflected a modest net reserve release during the quarter compared to a net reserve build a year ago, but was partially offset by higher net write-offs.

The company’s consolidated expenses increased 10% to $12.5 billion, driven by higher variable customer engagement costs, a benefit in the prior year resulting from enhancements to the models for estimating future membership rewards redemptions, as well as increased usage of travel-related benefits.

CEO Stephen J. Squeri highlighted that total card member spending continued to grow at a solid pace.

“Our performance across key areas, including Card Member spending, customer retention, demand for our premium products, and credit performance, continued to be strong across our customer base, consistent with and in many cases better than what we saw in 2024,” he said.

American Express maintained its full-year guidance for revenue growth of 8% to 10% and EPS of $15.00 to $15.50, in line with the ranges it provided in January.

AXP shares have declined by over 15% in 2025 but have gained more than 16% in the past 12 months.

Also See: Dow Futures Decline After Fed Chair Powell Says Trump’s Tariffs Could Drive Up Inflation: Nvidia, UnitedHealth Among Stocks To Watch

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