American Express isn’t waiting for the economy to make up its mind. It’s already betting cardholders will keep spending even as headlines wobble from “soft landing” to “hard stop.”By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .That bet was on full display during the company’s Q2 earnings call Friday (July 18), where the company announced ...

American Express (AXP) Q2 2025 Earnings Call July 18, 2025 08:30 AM ET Company ParticipantsKartik Ramachandran - SVP & Head - IRStephen Squeri - Chairman, CEO & DirectorChristophe Le Caillec - CFORyan Nash - MD - Regional Banks & Consumer FinanceMark Devries - DirectorDonald Fandetti - Managing DirectorJeffrey Adelson - Executive DirectorBrian Foran - Managing DirectorCraig Maurer - Co-Director - Research & MDConference Call ParticipantsSanjay Sakhrani - MD & Senior AnalystErika Najarian - MD & Equity Resea ...

Financial Data and Key Metrics Changes - Revenues reached a record $17.9 billion, up 9% year over year [5] - Earnings per share (EPS) was $4.8, up 17% excluding last year's gain from the sale of Certify [5][14] - Total card member spending increased by 7%, consistent with previous patterns [6][15] - The company reaffirmed its full-year revenue growth and EPS guidance provided in January [6] Business Line Data and Key Metrics Changes - Spending in travel categories like airlines and lodging was softer overall, while restaurant spending was strong, up 8% FX adjusted [15] - The U.S. Consumer business saw millennial spending up 10% and Gen Z spending growing around 40% [16] - New card acquisitions totaled 3.1 million in Q2, with 1.5 million in the U.S. Consumer business [18] Market Data and Key Metrics Changes - International business continued to grow in double digits, up 12% FX adjusted [16] - The premium products drove around 80% of growth in card member revolving loans [19] - Delinquency rates remained low, with U.S. millennial and Gen Z customers showing better credit performance than older age groups [20] Company Strategy and Development Direction - The company is focusing on refreshing its U.S. Consumer and Business Platinum cards this fall to maintain leadership in the premium card space [7][12] - The strategy includes enriching value propositions with more benefits and offerings, attracting premier partners to enhance customer value [10][12] - The competitive landscape has shifted towards partner-rated value, access, experiences, and superior customer service [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite macroeconomic uncertainties [15] - The company anticipates continued strong performance in the premium card segment, supported by a growing addressable market [12][28] - Management acknowledged the competitive environment but emphasized the importance of delivering value to maintain pricing power [46][67] Other Important Information - The company returned $2 billion of capital to shareholders, including $600 million in dividends and $1.4 billion in share repurchases [27] - The CET1 ratio was 10.6%, within the target range of 10% to 11% [26] Q&A Session Summary Question: How does the company plan for intermediate term spending trends? - Management expects spending trends to remain consistent, with some softness in airline and lodging but resilience in goods and services [31][32] Question: How does the company view competition in the premium card space? - Management believes that competition has been beneficial for customers and that as long as value is delivered, pricing power will remain intact [46][67] Question: What is the outlook for international growth and acceptance? - Management is optimistic about international growth, noting double-digit growth and ongoing improvements in merchant acceptance [58][60] Question: How does the company address concerns about lounge access and overcrowding? - Management is expanding lounge sizes and innovating with new concepts to manage demand effectively [77][78] Question: How does the company view the dynamics of net card fee growth? - Management expects some moderation in card fee growth rates in the second half of the year, with potential acceleration in 2026 [105][106]