American Express Company (NYSE:AXP) Conference Transcript

American Express Company (NYSE:AXP) Conference Summary Company Overview - Company: American Express Company (AXP) - Date of Conference: December 10, 2025 - Key Speaker: Steve Squeri, Chairman and CEO Key Industry Insights - Revenue Growth: American Express is on track to achieve 9%-10% revenue growth and mid-teens EPS growth for 2025, with 11% revenue growth reported in Q3 [3][4][34] - Customer Acquisition: The company has successfully refreshed its U.S. Platinum Card, leading to double the new account acquisitions compared to pre-refresh levels [16][39] - Billing Growth: Billing growth reached 8.5% in Q3, driven by strong organic growth, customer acquisition, and retention [6][7] Core Business Strategies - Product Innovation: Continuous investment in product refreshes and partnerships, including re-signing with major airlines and expanding membership assets [5][19] - Membership Model: Emphasis on enhancing the membership experience rather than just card features, focusing on travel and dining experiences [16][22] - Technology Integration: Leveraging technology to improve customer engagement and streamline access to benefits [22][23] Financial Performance - Variable Engagement Costs (VCE): VCE has increased but is seen as beneficial for driving revenue and attracting higher credit quality customers [20][21] - Profitability Focus: The company aims to increase profitability with product refreshes while maintaining or improving margins [19][31] - International Growth: International business has seen significant growth, with a 50% increase over the past three years, particularly in Canada, Australia, and Japan [52] Customer Demographics - Targeting Millennials and Gen Z: The company has successfully penetrated younger demographics while retaining high engagement from older cohorts [40][46] - Small Business Growth: Small business growth has improved, with a 4% year-on-year increase, while the middle market faces challenges [48] Risk Management - Credit Quality: American Express maintains a strong credit profile, with delinquency rates stable at 1.3% and write-off rates below pre-pandemic levels [57][60] - Economic Sensitivity: The company monitors economic conditions closely, with fee-paying card members historically performing better during downturns [58][59] Future Outlook - AI Integration: The company is leveraging AI for various applications, including fraud detection and customer service, with a focus on revenue generation [63][64] - Investment Appeal: American Express positions itself as a strong investment opportunity, highlighting its high revenue growth, mid-teens EPS growth, and premium customer base [65] Additional Insights - Partnership Value: Merchant partners contribute approximately $3 billion in value through various benefits, enhancing the overall value proposition for card members [24][26] - Market Positioning: The company emphasizes its unique business model and brand strength as key differentiators in the competitive landscape [65]