American Express Company Q3 FY2025 earnings call

• Strong quarter with revenue up 11% to $18.4B, EPS up 19% to $4.14. Cardmember spending accelerated.
• Launched refreshed US Consumer and Business Platinum cards, initial demand exceeding expectations. Global premium customer base is unmatched, with $530B annual spend from Platinum cards.
• Over 200 product refreshes globally since 2019, third US Platinum refresh in a decade. Product refreshes drive virtuous cycle of growth: enhanced offerings drive engagement and scale, attract merchant partners, leading to more engagement and reinvestment.
• Record bookings through Amex Travel post-platinum refresh and new travel app launch. Total spend up 8.5% FX adjusted, strong retail and T&E spending, momentum from Millennials and Gen Z, international spend up 13% FX adjusted.
• Acquired 3.2 million new cards, over 70% on fee-paying products. Credit performance excellent, delinquency rates below 2019 levels. Returned $2.9B to shareholders, ROE 36%.

Revenue was up 11% year over year to a record $18.4 billion, with earnings per share up 19% to $4.14. Cardmember spending accelerated to 9% (8% on an FX adjusted basis). The Consumer and Business Platinum card franchise alone accounts for approximately $530 billion of annual spend globally. Annual card fees are approaching $10 billion annually and have grown at double digits for 29 consecutive quarters. Credit performance remains excellent, with both US consumer and small business delinquency rates still below 2019 levels.

• Raised full-year guidance: revenue growth 9-10%, EPS $15.20-$15.50. Assumes stable macroeconomic outlook.

Q: Sanjay Sakhrani on resiliency and gain from Global Business Travel Group A: Stephen Squeri on stable spend outlook, Christophe Le Caillec on gain being ~$80M from Global Business Travel Group merger Q: Ryan Nash on financial impact of platinum refresh A: Stephen Squeri and Christophe Le Caillec on card fees delayed accounting, VCEs immediate, no major impact on mid-teens EPS growth Q: Mark DeVries on platinum refresh contribution to build business growth A: Christophe Le Caillec on small impact on total build business spend, specific partner impacts seen Q: Donald Fandetti on SM growth and fintech competition A: Stephen Squeri on SM acquisition and organic growth stabilization, mention of center acquisition and future launch Q: Craig Maurer on platinum refresh competitive takeaway and international strength A: Stephen Squeri on early data too early to tell, international spend strong in big five markets, focus on coverage expansion Q: Erika Najarian on platinum refresh expense and fee pacing A: Christophe Le Caillec on benefits available from day one, card fees accounting linear Q: Brian Foran on gold interaction and white space between platinum and black A: Stephen Squeri on gold still strong, no current plans for white space between platinum and black Q: Rick Shane on retention offers for platinum refresh A: Stephen Squeri on low retention offers needed due to strong product value Q: Jeffrey Adelson on consumer health and government shutdown A: Stephen Squeri on consumer health good, delinquencies low, no impact from government shutdown seen Q: Mihir Bhatia on marketing spend breakdown A: Christophe Le Caillec on marketing spend key on welcome incentives, balance between spending and efficiency Q: Moshe Orenbuch on vintage performance of platinum refresh A: Christophe Le Caillec and Stephen Squeri on younger premium cardholders driving future value, no vintage numbers disclosed but strategic value in younger cohorts Q: Robert Wildhack on partner offered value and refresh cycles A: Stephen Squeri on strong partner receptivity, example with Uber, differentiation between platinum and gold refreshes