American Express(US:AXP)2025-10-17 13:30Financial Data and Key Metrics Changes - Revenues increased by 11% year over year to a record $18.4 billion, with earnings per share (EPS) rising by 19% to $4.14 [7][19] - Full year revenue growth guidance has been raised to 9% to 10%, with EPS expected between $15.2 and $15.5 [7][34] Business Line Data and Key Metrics Changes - Annual card fees are approaching $10 billion, growing at double digits for 29 consecutive quarters [19] - Total spend was up 8.5% FX adjusted, driven by strong retail spending up 12% and a rebound in travel and entertainment (T&E) [21][22] - Premium T&E bookings saw spending on front-of-cabin airline tickets increase by 14% [21] Market Data and Key Metrics Changes - International spend was up 13% FX adjusted, with three of the top five countries growing by 18% or more [22][23] - Millennials and Gen Z now account for 36% of total spend, matching the share of Gen X [21] Company Strategy and Development Direction - The company is focused on enhancing its premium product offerings, exemplified by the recent refresh of the U.S. Consumer and Business Platinum Cards [8][9] - The strategy includes continuous product refreshes to drive customer engagement and growth, with over 200 refreshes since 2019 [10][12] - The company aims to expand its digital capabilities and merchant coverage outside the U.S. [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth, citing strong initial demand and engagement following the Platinum refresh [17][34] - The operating environment is viewed as stable, with expectations for continued spending growth into the holiday season [42][43] - Management noted that the consumer base remains resilient, with low delinquency rates and strong credit performance [86][90] Other Important Information - The company returned $2.9 billion to shareholders, including $600 million in dividends and $2.3 billion in share repurchases [33] - The company has seen a significant increase in new Platinum account acquisitions, running at twice the level before the refresh [16] Q&A Session Summary Question: Thoughts on the path forward and potential improvements - Management noted a recent acceleration in billings but remains cautious about predicting future trends, emphasizing a stable environment [38][39] Question: Financial impact of the Platinum refresh - Management indicated that while there is a delay in card fee increases, they expect to maintain mid-teens EPS growth despite the refresh costs [50][54] Question: Contribution of the Platinum refresh to billed business growth - Management acknowledged that while the refresh has had a positive impact, macroeconomic factors also play a significant role in spending trends [56] Question: Insights on small and medium enterprises (SME) - Management reported good acquisition trends and organic growth in the SME segment, with expectations for stabilization moving forward [60][62] Question: International strength and coverage - Management highlighted strong performance in international markets, particularly in the top five markets, and ongoing efforts to improve coverage [66] Question: Marketing spend strategy - Management emphasized a disciplined approach to marketing spend, focusing on efficiency while supporting product launches like the Platinum refresh [94] Question: Retention offers and customer engagement - Management indicated that retention offers play a minimal role, as the product's value drives customer loyalty and engagement [80][82]