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Investing.com -- American Express reported second-quarter earnings that surpassed analyst expectations, as card member spending reached a quarterly record high. Shares in the credit card giant rose 2% premarket following the announcement.
The company posted adjusted earnings per share of $4.08 for the second quarter, beating the analyst estimate of $3.87. Revenue came in at $17.86 billion, exceeding the consensus forecast of $17.7 billion and representing a 9% increase YoY. Card member spending reached a quarterly high of $416.3 billion, up 7% compared to the same period last year.
"Our second-quarter results continued the strong momentum we have seen in our business over the last several quarters, with revenues growing 9% year-over-year to reach a record $17.9 billion, and adjusted EPS rising 17%," said Stephen J. Squeri, Chairman and Chief Executive Officer.
American Express (NYSE:AXP) reaffirmed its full-year 2025 guidance, projecting earnings per share of $15.00 to $15.50, compared to the analyst consensus of $15.22. The company also maintained its revenue growth forecast of 8% to 10% for the year.
Credit performance remained strong, with the second-quarter net write-off rate at 2.0%, down from 2.1% a year ago, despite provisions for credit losses increasing to $1.4 billion from $1.3 billion in the prior year.
The company highlighted strong demand for its premium products and announced major updates coming to its Consumer and Business Platinum Cards in the U.S. this fall, as it seeks to maintain its leadership position in the premium card segment.