Financial Data and Key Metrics Changes - Full-year revenues increased by 10% to a record $72 billion, and EPS rose by 15% to $15.38, excluding the Accertify gain [5][16] - Net card fees grew by 18%, reaching a record $10 billion for the year [17] - Revenue growth for 2026 is expected to be between 9% and 10%, with EPS projected between $17.30 and $17.90 [7][29] Business Line Data and Key Metrics Changes - Card member spending remained strong, with retail spending up 10% and spending at luxury retail merchants up 15% [17] - B2B total spend increased by 8% (FX adjusted), with growth in both goods and services and P&E [17] - Loans and card member receivables increased by 7% year-over-year, with credit performance remaining strong and stable [21][22] Market Data and Key Metrics Changes - International spending grew by 12% (FX adjusted), with broad-based growth across consumer and business customers [18] - Millennial and Gen Z customers now represent the largest share of U.S. consumer spending, indicating a shift in demographics [18] - Transactions growth was consistent at 9%, reflecting continued customer engagement [19] Company Strategy and Development Direction - The company continues to focus on premium products and high credit standards, with a disciplined investment approach to drive growth [16][24] - Investments in technology and marketing are expected to enhance customer engagement and operational efficiencies [11][24] - The company plans to maintain a strong capital return strategy, with a 16% increase in quarterly dividends planned for 2026 [8][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and stability of the premium customer base, anticipating continued growth in 2026 [7][29] - The competitive landscape remains challenging, but the company believes it can maintain its leadership through innovation and customer service [74][75] - Management highlighted the importance of macroeconomic factors as potential risks to the 2026 outlook, rather than competitive dynamics [73] Other Important Information - The company has invested significantly in marketing, with a total of $6.3 billion spent in 2025, reflecting a 75% increase since 2019 [8] - The new third-generation data and analytics platform is expected to enhance marketing efficiency and customer personalization [12] - The company has reduced its share count by 7% since 2022, demonstrating confidence in sustainable earnings [27] Q&A Session Summary Question: Can you expand on the allocation of marketing dollars towards fee-paying products? - Management noted a strong demand for premium products, particularly the Platinum Card, and emphasized flexibility in marketing investments [35][36] Question: What are the expectations for commercial services and the competitive landscape? - Management acknowledged a slowdown in middle-market spending but expressed confidence in their competitive position and upcoming product refreshes [40][42] Question: How does the company view the potential impact of the 10% credit card cap proposal? - Management believes the cap would negatively affect the market by reducing the number of cards and line sizes, which could harm small businesses [68][70] Question: What are the key initiatives for 2026? - Management highlighted priorities such as winning in the premium space, building commercial capabilities, and enhancing digital offerings [83][84]

Core Insights - American Express reported record third-quarter 2025 results, driven by the spending power and loyalty of younger affluent consumers [1] - The company achieved a net income of $2.9 billion, a 16% increase year-over-year, with earnings per share rising 19% to $4.14, surpassing analyst estimates [2] - Total revenue reached an all-time high of $18.43 billion, an 11% increase, exceeding anticipated figures [2] Consumer Engagement - Strong card spending and deepening engagement among younger affluent cohorts contributed significantly to American Express's success [3] - Millennials and Gen Z account for 36% of total card member spending and make 25% more transactions on average than older customers [3] - The demand for premium products among younger consumers has reinforced American Express's reputation as a leading brand for upscale consumers [3] Economic Context - American Express and similar brands are benefiting from a concentration of wealth in the American economy, with the top 10% of households accounting for nearly 50% of consumer spending [4] - Consumer spending in the U.S. constitutes two-thirds of all economic activity, highlighting the importance of affluent consumers [4] Pricing Dynamics - A "two-tier" effect in the economy is noted, where premium producers can pass through price increases to affluent consumers, with an estimated 40% pass-through rate [5][6] - In contrast, there is no inflation observed for consumer prices among the lower half of the income distribution, as these consumers are sensitive to price increases [6] Product Launch - The launch of the refreshed U.S. Consumer Platinum Card and Business Platinum Card has led to record engagement, exceeding initial customer demand expectations [7]

Financial Data and Key Metrics Changes - The company reported a strong quarter with revenues increasing by 11% year over year to a record $18.4 billion and earnings per share (EPS) rising by 19% to $4.14 [4][12] - Card member spending accelerated to 9% or 8% on an FX-adjusted basis, with notable growth in retail spending and a rebound in travel [4][12] - Full-year revenue growth guidance has been raised to 9% to 10%, with EPS expected between $15.20 and $15.50 [4][21] Business Line Data and Key Metrics Changes - Annual card fees are approaching $10 billion, growing at double digits for 29 consecutive quarters [12] - Total spend was up 8.5% FX-adjusted, driven by strong retail spending up 12% and a rebound in travel and entertainment (T&E) [12][13] - Premium T&E bookings showed good momentum, with spending on front-of-cabin airline tickets up 14% [13] Market Data and Key Metrics Changes - International spend increased by 13% FX-adjusted, with three of the top five countries growing by 18% or more [14] - Millennials and Gen Z now account for 36% of total spend, matching the share of Gen X [14] - The company acquired 3.2 million new cards in the quarter, with over 70% of new accounts being fee-paying products [15] Company Strategy and Development Direction - The company continues to invest in refreshing its product offerings, with over 200 refreshes across its portfolio since 2019 [5][6] - The recent launch of the refreshed U.S. Consumer Platinum Card and Business Platinum Card aims to enhance customer engagement and drive growth [4][10] - The strategy focuses on understanding customer needs and enhancing value propositions with compelling benefits and services [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth through the powerful membership platform and expanding digital capabilities [11][21] - The company noted a stable macroeconomic environment and a positive outlook for the holiday season based on strong retail spending [26][27] - Delinquency rates remain low, and credit performance is stable, indicating a healthy consumer base [57][59] Other Important Information - The company returned $2.9 billion of capital to shareholders, including $0.6 billion in dividends and $2.3 billion in share repurchases [21] - The company expects a step-up in costs related to the Platinum Card refresh, but remains committed to achieving mid-teens EPS growth [32][34] Q&A Session Summary Question: Insights on the path forward and potential improvements in customer spending - Management noted a recent acceleration in billings and expressed optimism about maintaining this momentum, particularly in retail and travel spending [25][26] Question: Financial impact of the Platinum Card refresh - The refresh is expected to have a delayed impact on card fees, with costs rising in the short term but aiming for mid-teens EPS growth in the long term [31][34] Question: Strength of demand for consumer versus business products - The company reported strong demand for both consumer and business products, with notable growth in premium offerings [36] Question: Insights on small and medium enterprises (SME) growth - Management indicated good acquisition trends in the SME segment and expressed confidence in stabilizing growth moving forward [38][40] Question: Performance of the Platinum Card refresh and competitive takeaways - It is too early to determine the competitive impact of the refresh, but initial results show strong upgrades and new card acquisitions [42][43] Question: Marketing spend strategy - The company plans to continue investing in marketing while ensuring efficiency and effectiveness in spending [61][63] Question: Consumer health and impact of government shutdown - Management reported stable consumer health metrics and no significant impact from the government shutdown at this time [57][58]