American Express reported first-quarter earnings that surpassed analyst estimates, driven by a surge in cardholder spending that hit a three-year high. The company's results underscore resilient consumer demand despite economic uncertainties.
Strong Spending Momentum
Total spending on AmEx cards rose 12% year-over-year, the fastest growth since early 2023. The increase was broad-based across travel, retail, and dining categories, with millennials and Gen Z leading the charge. CFO Christophe Le Marchand attributed the performance to "healthy consumer fundamentals and strong engagement."
Financial Highlights
- Net income: $2.8 billion, up 15% from a year ago.
- Revenue: $16.9 billion, exceeding the $16.5 billion consensus.
- Earnings per share: $3.89, beating estimates of $3.72.
The company also raised its full-year earnings guidance, now expecting EPS of $15.50 to $15.90, up from $15.20 to $15.70 previously.
Outlook and Strategy
AmEx continues to invest in premium card offerings and digital tools to attract younger demographics. It added 3.5 million new cards in the quarter, with a focus on fee-based products. The provision for credit losses rose to $1.3 billion, reflecting portfolio growth, but delinquencies remained low.
Shares rose 2.3% in after-hours trading following the announcement. Analysts at JPMorgan called the results "a clear sign of spending resilience."
