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][29] Business Line Data and Key Metrics Changes - Billed business trends showed a 7% increase in spend, with goods and services spending growing at a similar pace [15][16] - Travel and entertainment (T&E) growth was slightly down, driven by softer airline and lodging spend, while restaurant spending was strong, up 8% FX adjusted [16] - The U.S. Consumer business saw millennial spend up 10% and Gen Z spend growing around 40% [17] - 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 [17] - The company reported strong credit performance, with delinquency rates flat to Q1 and write-off rates declining [20] - The Fed's CCAR results indicated the lowest projected credit card loss and highest profitability rates among all banks subject to the stress test [7][21] 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][29] - The company anticipates continued strong performance in the premium card segment, supported by a growing addressable market [12][29] - Management acknowledged the competitive environment but emphasized the importance of delivering value to maintain pricing power [49][50] Other Important Information - The company returned $2 billion of capital to shareholders, including $600 million in dividends and $1.4 billion in share repurchases [28] - The CET1 ratio was reported at 10.6%, within the target range of 10% to 11% [28] Q&A Session Summary Question: How does the company plan for spending trends in the intermediate term? - Management expects spending trends to remain consistent, with some softness in airline and lodging but resilience in goods and services [32][34] 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 be maintained [48][50] Question: What is the outlook for international acceptance growth? - Management is optimistic about international growth, reporting double-digit growth and ongoing improvements in merchant acceptance [60][62] Question: How does the company address concerns about lounge access and overcrowding? - Management is expanding lounge space and introducing innovative solutions 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 [106] Question: How is the acquisition strategy evolving in the premium card space? - Management noted that increased competition has expanded demand for premium products, allowing for more marketing investment at attractive returns [101][102]

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]