American Express Reports Strong Third Quarter Results Driven by High-Spending Affluent Customers
American Express (AXP) has demonstrated continued momentum in its third quarter, reporting a 9% year-over-year increase in net revenue to $20.1 billion. The company's growth is fueled by an 8% rise in billed business and the addition of 3.1 million net new card members. Notably, two-thirds of these new members belong to the Gen-Z and Millennial cohorts, suggesting long-term lifetime value expansion. The financial results highlight a robust economic moat driven by a premium brand and an affluent customer base, which has resulted in a low net write-off rate of 1.8%. Following these strong metrics, management raised its full-year adjusted earnings per share (EPS) guidance to a range of $17.60 to $17.90. This performance reinforces Berkshire Hathaway's significant stake in the company, which currently represents approximately 13.1% of its portfolio.
Tickers: $AXP
Topics: cardmember acquisition credit quality payment volume revenue growth