American Express Company Q4 FY2025 earnings call

• Strong performance continued with full-year revenues up 10% and EPS $15.38, up 15% excluding the gain. • Continued product refreshes including US consumer and small business platinum cards, and renewed international partnerships. • Invested $6.3 billion in marketing in 2025, reallocated marketing dollars to platinum products. • Spends $5 billion annually on technology, with a third-generation data and analytics platform being rolled out, reducing key process times by 90%. • Maintained excellent credit quality with flat delinquency rates and best-in-class write-off rates. • Plan to increase quarterly dividend by 16% to 95¢.

Full-year revenues were up 10% to a record $72 billion. Net card fees grew at 18% and reached a record of $10 billion for the year. International spend was up 12% FX adjusted. Billed business trends: total spend was up 8% FX adjusted consistent with Q3. Retail spending was up 10%, luxury retail spending up 15%, restaurant spending up 9%. Millennial and Gen Z customers now make up the largest share of US consumer spending, and they remain the fastest-growing cohorts.

• Expect 2026 revenue growth of 9% to 10% and EPS of $17.30 to $17.90. • Plan to increase quarterly dividend by 16% to 95¢ per share. • Expect VCE to revenue ratio to be around 44% in 2026. • Operating expenses expected to grow in the mid-single digits in 2026. • Marketing expense expected to be up in the low single digits in 2026.

• Competitive dynamics in the consumer and commercial spaces. • Macro-economic and political risks. • Concerns about the 10% credit card cap proposal and its potential unintended consequences.

Q: Ryan Nash of Goldman Sachs asked about allocating marketing away from cash back and impact on results.

A: Stephen Squeri said they are flexible with marketing investment, saw demand for premium products, and happy with decisions; Christophe Le Caillec added about variations in quarters and improvement in efficiency of marketing dollars.

Q: Sanjay Sakhrani of KBW inquired about Commercial Services and SME spend.

A: Stephen Squeri mentioned SMB has strong small business, middle market slowdown, competitive space, and will communicate more on commercial strategy.

Q: Don Fandetti of Wells Fargo asked about 2026 US consumer billed business.

A: Stephen Squeri said bullish on consumer, strong momentum from platinum launch and app, but not projecting over 9%.

Q: Erika Najarian of UBS revisited net cards acquired and impact on net card fees.

A: Stephen Squeri said portfolio moving to premium, card fee growth expected to pick up as year progresses with platinum renewals.

Q: Rick Shane of JPMorgan asked about incremental investment with low credit expense.

A: Stephen Squeri said credit at limit, efficiencies from operating expenses, and mid-teen EPS growth guidance includes various scenarios.

Q: Mark DeVries of Deutsche Bank asked about engagement and spend from existing customers after product refresh.

A: Stephen Squeri said existing customers engage quickly, with examples like 30% uptick in travel bookings post-platinum launch.

Q: Craig Maurer of Feet Partners asked about Card Member Services growth cadence.

A: Stephen Squeri said engagement stabilizes, with balance of card members using different benefits, and VCE to revenue ratio guidance around 44%.

Q: Jeffrey Adelson of Morgan Stanley asked about 10% credit card cap proposal.

A: Stephen Squeri said 10% cap not the answer, would reduce cards and lines, not a good idea.

Q: John Fandetti of Evercore ISI asked about consumer competitive dynamic and greatest risk to 2026 outlook.

A: Stephen Squeri said risk is macroeconomic/political, competitive dynamic tough, but focus on customer service and staying ahead.

Q: Moshe Orenbuch of TD Cowen asked about positioning with recent acquisitions.

A: Stephen Squeri said Center acquisition provides own expense management offering, more to come on commercial road map.

Q: Mihir Bhatia of Bank of America asked about 2026 priorities.

A: Stephen Squeri said priorities include continuing value from platinum launch, building coverage, digital and small business capabilities, and combining Resy and Tock.

Q: Brian Foran of Truist asked about cost to grow concern.

A: Stephen Squeri said don't view cost to grow as too high, long-term view on card members, and economics compelling with investment in value propositions and technology.

Q: Christophe Kennedy of William Blair asked about data analytics platform and AI for card member engagement.

A: Stephen Squeri said excited about third-generation data and analytics platform, using AI for better card member offers and insights, rolling out by 2027.