Core Insights - American Express reported Q2 2025 results with revenues of $17.9 billion, a 9% year-over-year increase, and earnings per share of $4.08, up 17% excluding last year's gain from the sale of Certified [1] - The company reaffirmed its full-year revenue growth guidance of 8% to 10% and EPS guidance of $15 to $15.50, highlighting record net card fees and a strong premium portfolio [1][9] Revenue and Fee Growth - Net card fees reached a record high, increasing by 20% on an FX-adjusted basis, with fee revenue more than doubling since 2019, driven by premium product penetration and strong customer retention [2][3] - The average annual growth rate of card fees since 2019 has been 17%, reflecting the company's strategy focused on premium offerings and customer acquisition [3] Capital and Stress Test Performance - The company's Common Equity Tier 1 (CET1) ratio was 10%, with a stress capital buffer at the regulatory minimum, allowing for $2 billion in capital returns to shareholders through dividends and buybacks [4] - American Express demonstrated the lowest projected credit card loss rate and highest profitability among banks subjected to the Federal Reserve's Comprehensive Capital Analysis and Review (CCAR) [5] International Expansion - The international business achieved 12% FX-adjusted revenue growth, supported by increased merchant acceptance and premium product adoption in targeted core markets [6] - There is significant untapped potential in international markets, with premium product pricing generally exceeding U.S. levels and low overall market share [6][7] Future Outlook - Management anticipates increases in variable customer engagement expenses and operating expenses as premium product refreshes are rolled out, with card fee growth expected to moderate through Q4 2025 before accelerating in 2026 [9]