- American Express (AXP, Financial) reported a 9% increase in Q1 2025 earnings per share (EPS) to $3.64.
- The company achieved a revenue growth of 7% to $17.0 billion, or 8% on an FX-adjusted basis.
- Credit performance remained stable with a 2.1% net write-off rate.
American Express (AXP) has released its first-quarter 2025 financial results, showcasing a strong performance with a net income of $2.6 billion, or $3.64 per share. This marks a 9% increase from the previous year’s EPS of $3.33, highlighting the continued resilience of the company's premium strategy.
Total revenue for the period reached $17.0 billion, reflecting a 7% increase year-over-year, or 8% when adjusted for foreign exchange fluctuations. This growth was supported by increased Card Member spending and higher net interest income resulting from the growth in revolving loan balances.
The company maintains its full-year 2025 guidance, projecting revenue growth between 8-10% and an EPS range of $15.00 to $15.50, demonstrating confidence in their business model despite prevailing macroeconomic uncertainties.
Key performance metrics include a 6% growth in billed business to $387.4 billion and a decrease in provisions for credit losses from $1.3 billion to $1.2 billion. The net write-off rate remained stable at 2.1%, indicating effective credit risk management.
However, consolidated expenses rose by 10% to $12.5 billion, driven by higher variable customer engagement costs and increased usage of travel-related benefits. This rise in expenses suggests an evolving consumer behavior pattern which, while impacting margins, also indicates heightened Card Member engagement.
Stephen J. Squeri, Chairman and CEO of American Express, stated that the company’s performance reflects the power of its premium customer base and a strategic focus on long-term growth. The firm remains focused on customer backing, disciplined expense management, and strategic business investments moving forward.
