American Express Reports Record Second Quarter Revenue of 17.9 Billion with Strong Earnings Performance in 2025 Q2
American Express Company (NYSE: AXP) has delivered a commanding financial performance in the second quarter of 2025, reporting record total revenues net of interest expense of $17.9 billion, marking a 9% year-over-year increase. This robust revenue growth is underpinned by a 7% rise in Card Member spending, which reached a quarterly high, and a 17% increase in adjusted earnings per share (EPS) excluding transaction gains, reflecting the company’s operational strength and strategic execution.
Key Financial Highlights for Q2 2025: - Total revenues net of interest expense: \(17.9 billion, up 9% year-over-year (YoY) - Card Member spending (billed business): \)416.3 billion, up 7% YoY - Net income: \(2.9 billion, slightly down 4% YoY due to prior year transaction gains - Diluted EPS: \)4.08, down 2% YoY, but adjusted EPS excluding transaction gains up 17% - Consolidated provisions for credit losses: \(1.4 billion, reflecting growth in loans and receivables - Consolidated expenses: \)12.9 billion, up 14% YoY, driven by investments in technology and customer engagement - Effective tax rate: 18.7%, improved from 20.4% in the prior year
CEO Stephen J. Squeri emphasized the company’s strong momentum, stating, “Our second-quarter results continued the strong momentum we have seen in our business over the last several quarters, with revenues growing 9 percent year-over-year to reach a record $17.9 billion, and adjusted EPS rising 17 percent.”
The company reaffirmed its full-year 2025 guidance, projecting revenue growth of 8 to 10 percent and EPS between \(15.00 and \)15.50. This confidence is bolstered by the upcoming refresh of the U.S. Consumer and Business Platinum Cards, which is expected to sustain American Express’s leadership in the premium card space.
From a financial analysis perspective, the increase in revenues and Card Member spending indicates strong consumer demand and effective premium product positioning. The rise in credit loss provisions to $1.4 billion, while higher than the previous year, is consistent with loan growth and reflects prudent risk management, as evidenced by a slight improvement in the net write-off rate to 2.0% from 2.1%.
Operating expenses increased by 14%, primarily due to higher investments in enterprise risk management and technology, as well as increased variable customer engagement costs linked to higher Card Member spending and travel benefits usage. Despite these cost pressures, the effective tax rate improvement contributed positively to net income.
The 2025 Comprehensive Capital Analysis and Review (CCAR) results highlighted American Express’s resilience, showing the lowest projected credit card loss rate and highest projected Return on Assets under the Federal Reserve’s stress test scenarios.
Additional business highlights include the launch of the new Coinbase One Card on the American Express network and recognition as the #1 U.S. Credit Card Mobile App and Website Experience for Customer Satisfaction by J.D. Power.
In summary, American Express’s Q2 2025 financial results demonstrate robust revenue growth, strong premium product demand, and effective risk and expense management. The company’s strategic initiatives and product innovations position it well for sustained growth in the competitive financial services sector.
For further details, the full 8-K report is available here: American Express 8-K Q2 2025.
Tags: AXP, American Express, Q2 2025, Credit Card Spending Growth, Premium Card Market, Financial Services Innovation