American Express reports record earnings and strong spending growth

The company sees strong growth in spending from millennials and Gen Z amid high revenue.

American Express reports record earnings as affluent spending soars

American Express announced record earnings of $17.9 billion for the second quarter of 2025, highlighting a 9% year-over-year increase. Total Card Member spending reached $416.3 billion, growing by 7% compared to the previous year. Notably, millennials increased their spending by 10%, while Gen Z spending surged by 40%. The latest results suggest that affluent Americans are financially confident. However, rising costs and expenses, up 14% from last year, raise concerns about profitability. Despite strong earnings, American Express's share price dropped 2.6% after analysts expressed worries about the sustainability of growth given increased servicing costs.

The uptick in spending among wealthier demographics indicates a solid recovery and confidence in luxury markets. Generational shifts reveal that younger consumers are embracing premium experiences, challenging the idea that affluent spending is cyclical. Yet, the increased expenses could highlight a critical test for American Express. If they can balance growth with sustainable costs, they may well define the future of premium credit services. However, the anxiety among investors suggests that even strong performance is subject to scrutiny in a turbulent economic environment.

Highlights

The strong growth signals a promising future for American Express in the premium market.