AmEx profits surge 13% as affluent customers splurge on luxury goods and travel
NEW YORK (AP) — American Express saw its profits grow 13% in the fourth quarter, as the credit card giant continues to benefit from its well-to-do clientele spending heavily on their cards on everything from luxury goods to restaurants to travel.
The New York-based company said Friday it earned a profit of $2.46 billion, or $3.53 a share, compared to a profit of $2.17 billion, or $3.04 a share, in the same period a year earlier. The earnings were roughly in line with analysts' forecasts, according to FactSet.
As it has been for several quarters, AmEx continues to get its cardmembers to spend heavily on their cards with perks and rewards. The company did a refresh of the Platinum Card in September, adding benefits like a $400 annual dining credit but at the same time increasing the annual fee to $895.
AmEx customers spent $506.2 billion on their cards in the fourth quarter, up from $464 billion in the same period a year ago. That brakes down to $6,696 per card member. Cardmembers are also keeping a balance as well. AmEx now has $213 billion in credit card loans on its books, compared to $199.1 billion a year earlier.
But despite the higher fee, the company continues to add customers, particularly younger ones. For the first time in company history, Gen-Z and Millennials are collectively spending more on their AmEx cards than Gen-X, historically the company's biggest spending cohort, said Chief Financial Officer Christophe Le Caillec.
AmEx gave a forecast for 2026, expecting earnings per share of $17.30 to $17.90. The company also plans to increase the quarterly dividend from 82 cents a share to 95 cents a share.
