American Express (AXP, Financial) is doing what it does best—leaning on wealthy spenders who aren't flinching, even as tariffs and economic noise rattle the rest of the market. First-quarter earnings per share rose 9% to $3.64, beating Wall Street's expectations, and total billed business hit $387.4 billion, up 6% year-over-year. While that fell slightly short of analyst targets, it wasn't enough to shake Amex's full-year forecast. The company is sticking to its guidance: 8%–10% revenue growth and earnings between $15 and $15.50 a share.
CEO Steve Squeri summed it up bluntly: “The Amex customer is acting like the Amex customer has acted.” Translation? No slowdown. No panic. Even as tariffs and grocery bills climb, the company's high-income cardholders—who pay a premium for rewards—are still spending like it's business as usual. Squeri added that April trends are holding strong, with no signs of hesitation among Amex's core demographic. This cohort may not be recession-proof, but they're certainly recession-resistant.
Beyond the numbers, Amex is playing both defense and offense. It set aside $1.2 billion for potential loan losses—less than expected—and made a strategic move to acquire expense management startup Center. Leadership is also shifting, with enterprise services president Anré Williams set to exit later this year. Through it all, the playbook is clear: bet on the big spenders, ride out the noise, and build for long-term profitability—tariffs or not.
