American Express Company (AXP) – NYSE: 2023 Financial Results Summary

# American Express (NYSE: AXP) Q2 2025 Earnings Report

**Release Date: July 18, 2025**

American Express Company (NYSE: AXP) reported its financial results for the second quarter of 2025, announcing key metrics that reflect continued growth in multiple areas. The following highlights summarize the performance of the organization:

## Key Financial Metrics
– **Total Revenue**:
– Recorded at **$17.9 billion**, representing a **9%** increase from **$16.3 billion** in Q2 2024.
– **Card Member Spending**:
– Reached a quarterly high with a **7%** increase from the prior year.
– **Net Income**:
– Reported at **$2.9 billion**, a slight decline of **4%** compared to **$3.0 billion** in Q2 2024.
– **Earnings Per Share (EPS)**:
– **GAAP EPS** was **$4.08**, a **2%** reduction from **$4.15** in Q2 2024.
– **Adjusted EPS (excluding transaction gain)** showed growth of **17%**, increasing from **$3.49** to **$4.08**.

## Performance Overview
– **Billed Business**:
– Amounted to **$416.3 billion**, up **7%** from **$388.2 billion** in the same quarter last year.
– **Total Revenues (net of interest)**:
– Totaled **$16.3 billion**, a growth of **9%** year-over-year.
– **Expenses**:
– Total expenses were **$17.9 billion**, reflecting a **9%** increase from the previous year. The rise was attributed to:
– Increased operating expenses due to higher investments in risk management and technology.
– A significant expense rise related to customer engagement as more members utilized travel-related benefits.

## Credit Performance
– **Credit Losses**:
– Provisions for credit losses amounted to **$1.4 billion**, an increase from **$1.3 billion** year-over-year, indicating a higher reserve build.
– Despite this increase, the net write-off rate decreased slightly from **2.1%** last year to **2.0%** in Q2 2025.

## Tax and Shares
– **Effective Tax Rate**:
– Decreased to **18.7%**, down from **20.4%** in Q2 2024, primarily due to discrete tax benefits.
– **Share Reduction**:
– Average diluted common shares were reduced by **3%**, from **717 million** in the previous year to **699 million**.

## Strategic Insights
– American Express remains confident in its full-year guidance for 2025 with expected revenue growth of **8% to 10%** and EPS projected at **$15.00 to $15.50**.
– The company plans to refresh its U.S. Consumer and Business Platinum Cards this fall to sustain its leadership in the premium sector.

## Customer Engagement and Satisfaction
– **J.D. Power Rankings**:
– American Express was ranked #1 for both its U.S. Credit Card Mobile App and Website Experience for Customer Satisfaction.
– **Workplace Recognition**:
– Recognized as #4 on the 2025 Best Companies to Work For® in the U.S.

## Shareholder Activities
– **Dividends**:
– The report did not mention any new quarterly dividend declarations for this quarter.
– **Share Repurchase**:
– There was no mention of share repurchase activities in the reported results.

In conclusion, American Express has shown resilient growth in several key metrics during Q2 2025, highlighting strong Card Member spending and solid revenue performance. Despite a dip in net income and short-term EPS, adjusted earnings indicate robust underlying performance, which the company attributes to effective operational strategies and customer engagement approaches.

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