American Express Stock Is Surging—Here's Why

Core Insights - American Express reported record quarterly revenue driven by strong spending from affluent consumers, with shares rising approximately 15% in 2025, slightly outperforming the S&P 500 [1][5]. Financial Performance - The company announced third-quarter earnings per share of $4.14, with revenue increasing 11% year-over-year to a record $18.43 billion, surpassing analysts' expectations [2]. - American Express raised the lower end of its full-year earnings per share outlook to $15.20 to $15.50, up from a previous range of $15 to $15.50, and projected revenue growth of 9% to 10% compared to the earlier estimate of 8% to 10% [2][7]. Market Reaction - Following the earnings announcement, American Express shares surged over 6% to around $343, positioning them to close at a record high [3]. Economic Context - The results highlight a trend where the economy is increasingly influenced by the spending habits of wealthy Americans, who are benefiting from stock market gains [4]. - The CEO noted that the launch of updated high-end credit cards contributed significantly to the strong performance, with demand and engagement exceeding expectations [4].