American Express Reports Strong Q2 Earnings with Revenue Growth and Raised Outlook
American Express (NYSE: AXP) reported second-quarter results that exceeded expectations, with revenue rising by 10% year-over-year to $4.53 per share in earnings per share (EPS). The company raised its full-year revenue growth outlook to 10%, while maintaining EPS guidance between $17.30 and $17.90. Management emphasized reinvesting the outperformance into customer acquisition, technology, and other initiatives rather than solely focusing on buybacks or boosting short-term earnings. Premium products were a major driver of growth, with the refreshed U.S. Platinum Card contributing to strong spending and fee increases. Total cardholder spending rose 9.4% in FX-adjusted terms, while net card fees hit record levels. The company also returned $2.9 billion to shareholders through dividends and share repurchases during the quarter. Credit quality remained robust with delinquency and write-off rates below pre-pandemic levels. American Express acquired three million new cards in Q2, with a significant portion coming from fee-based products, particularly among younger demographics like Millennials and Gen Z.
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