American Express raises outlook after record revenue jump

American Express reported its strongest quarterly revenue to date, lifted by affluent customer spending and recent upgrades to its premium cards. The performance prompted the company to tighten its full-year guidance and propelled the stock to an all-time high.

Record figures for the third quarter

The card issuer disclosed revenue of $18.43 billion for the three months ended Sept. 30, an 11 percent increase from a year earlier. Earnings reached $4.14 per share, surpassing the consensus gathered by Visible Alpha. The results reflect continued momentum in discretionary purchasing by high-income consumers, a trend also underscored by recent Federal Reserve consumer credit data.

Chief Executive Officer Stephen Squeri said updated versions of several high-end products, including refreshed travel-oriented cards, attracted strong demand and higher engagement. The initiatives contributed to growth in both card fees and spending volumes, two primary revenue streams for the company.

Guidance adjustment and market reaction

Boosted by the latest performance, American Express narrowed its 2025 earnings forecast to a range of $15.20 to $15.50 a share, up from the prior floor of $15. It now anticipates annual revenue growth between 9 percent and 10 percent, compared with the previous 8 percent to 10 percent bracket.

The outlook revision helped send the stock more than 6 percent higher in early afternoon trading, hovering near $343 and on course for a record closing level. Year to date, shares are up roughly 15 percent, outperforming the S&P 500’s 13 percent advance.

Affluent spending remains a key driver

The latest quarter confirms a pattern in which wealthier U.S. consumers continue to spend on travel, dining and luxury retail even as other demographic groups face pressure from higher borrowing costs. Management indicated that cardmembers with premium products are showing elevated retention rates and larger average transaction sizes, reinforcing the decision to invest in high-end benefits such as airport lounge access and statement credits for lodging and experiences.

Analysts tracking the sector note that American Express is less exposed to interest-rate-sensitive revolving balances than mass-market issuers, allowing it to benefit disproportionately from fee-based revenue. The company did not announce changes to its credit-loss provisioning, suggesting delinquency trends remain within expectations.

Competitive landscape and next steps

Rival networks have intensified efforts to attract affluent clients, but American Express continues to leverage its closed-loop model, which combines issuing, acquiring and network capabilities. That structure enables the firm to gather detailed spending data and tailor rewards accordingly. Squeri signaled that additional product refreshes could arrive in 2026, although he did not provide specifics.

The company will hold its customary investor day in the first quarter, when it is expected to outline long-term growth targets and capital allocation plans. Until then, management reiterated its commitment to maintaining a payout ratio consistent with historical norms while evaluating further share repurchases subject to economic conditions.

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