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Record Financial Performance
American Express reportedly achieved record financial results in the third quarter of 2025, according to the company’s earnings report. Net income saw a significant increase, reaching $2.9 billion, which sources indicate is a 16% jump compared to the same period last year. Earnings per share also rose impressively, climbing 19% to $4.14 and surpassing analyst estimates. Total revenue, net of interest expense, reportedly hit an all-time high of $18.43 billion, an 11% increase that also beat market expectations. Following this strong report, shares of American Express jumped by 7%.
The Youthful Premium Push
The driving force behind this performance, analysts suggest, is the spending and engagement of younger affluent cohorts. Chief Executive Steve Squeri stated that Millennial and Gen Z Platinum members are “very comfortable paying for its exceptional value.” Reports indicate that these younger generations now account for 36% of total card member spending, a figure on par with Generation X, and they are making 25% more transactions on average than older customers. This demographic’s strong appetite for premium products has reinforced American Express’s position as a leading brand for upscale consumers.
A Broader Economic Trend
This success is part of a wider inflection in the economy, where premium products are thriving alongside a concentration of wealth. Analysis from Moody’s Analytics found that for Q2 2025, the top 10% of households accounted for nearly half of all consumer spending. Federal Reserve Governor Chris Waller recently described a “two-tier” effect in the economy, where premium producers can pass price increases directly to their affluent, price-insensitive customers, while there is little to no inflation for the lower half of the income distribution. This dynamic is reflected in other industries, with companies like Delta Air Lines also reporting that their premium offerings are set to become their largest revenue source ahead of schedule.
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Product Refresh Strategy Pays Off
The report states that a key factor in the quarter was the successful launch of the refreshed U.S. Consumer and Business Platinum Cards. CEO Steve Squeri described it as the strongest rollout for the card, with new account acquisitions doubling compared to pre-refresh levels. He highlighted this as part of a “proven strategy of refreshing our products on a regular basis to drive customer engagement and growth.” Since 2019, the company has reportedly executed over 200 such refreshes globally. The 2025 update for the Platinum card emphasized lifestyle and digital perks, including enhanced travel rewards and new benefits in wellness and entertainment, designed to resonate with younger, high-income Millennials and Gen Z consumers.
Global Expansion and Future Outlook
The company’s growth is not confined to the U.S. market. According to the earnings call, spending among Platinum cardholders outside the U.S. climbed 24%, signaling strong global expansion among young professionals. The Chief Financial Officer also noted that 70% of new accounts acquired globally now come from fee-paying premium products. Given this strong momentum, American Express has raised its full-year 2025 outlook, now anticipating revenue growth between 9% and 10%. This positive forecast is supported by broader market trends and industry developments that favor companies with strong premium offerings. The company’s strategy appears to be well-aligned with related innovations and the evolving landscape of recent technology in the financial services sector.
Investor Returns and Long-Term Strategy
In line with its strong performance, American Express has continued to return value to its shareholders. Reports indicate that over the past three years, the company has returned about 70% of its earnings to investors. In 2025 alone, it has reportedly returned $2.9 billion through a combination of stock buybacks and dividends. The long-term strategy, as outlined by the CEO, involved a conscious decision years ago to widen the aperture for premium products to attract new generations. This focus on Millennials and Gen Z is seen as crucial for future growth, allowing the company to evolve its products, like the Platinum card, from a card for frequent travelers into a comprehensive premium lifestyle card that appeals across generations. Further details on the company’s strategic direction can be found in the earnings call transcript and executive profiles on the company’s investor relations site.
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