American Express Company (AXP) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 revenue of $17.9B, up 9% year-over-year, with strong Card Member spending and premium product demand; adjusted EPS rose 17% to $4.08, excluding a prior-year gain.

• Net income was $2.9B, down 4% from last year due to a prior-year gain; reaffirmed full-year 2025 guidance for 8–10% revenue growth and EPS of $15.00–$15.50.

• Billed business grew 7% year-over-year, with record Card Member spending and high customer loyalty.

• Major product updates and new partnerships, including the Coinbase One Card and upcoming U.S. Consumer and Business Platinum Card refreshes, were announced.

• Achieved lowest projected credit card loss rate and highest projected ROA in Federal Reserve stress test.

Financial highlights

• Total revenues net of interest expense rose 9% year-over-year to $17.9B for Q2; net income was $2.9B.

• Net card fees reached record levels, up 20% year-over-year; net interest income increased 12% to $4.19B.

• Billed business reached $416.3B, up 7% year-over-year on an FX-adjusted basis.

• Provisions for credit losses increased 11% year-over-year to $1.41B for Q2, including a $222M reserve build.

• Consolidated expenses increased 14% year-over-year to $12.9B, mainly due to higher operating and customer engagement costs.

Outlook and guidance

• Full-year 2025 revenue growth expected at 8–10% and EPS guidance reaffirmed at $15.00–$15.50.

• OPEX growth expected in mid-single digits for the year, with operating leverage improving as OPEX as a percentage of revenue fell from 25% in 2023 to 21% this quarter.

• Confident in sustaining premium segment leadership with upcoming U.S. Consumer and Business Platinum Card refreshes; card fee growth expected to moderate in Q3 and Q4, with acceleration in 2026.

• Guidance subject to macroeconomic conditions and other external factors.