01—Abstract
Summary
Summary of the 10-Q filed July 18, 2025. Cited figures are marked; the original filing is the authoritative source.
American Express Company (AXP) reported its financial results for the quarter ending June 29, 2025.
Total revenues net of interest expense saw a healthy 9% increase year-over-year, reaching $17.9 billiona, driven by robust performance across its key segments. This growth was supported by a 7% increase in network volumes and a 6% rise in billed business, reflecting the resilience of its premium customer base and effective product strategies. The company demonstrated strong operational execution, managing expenses effectively while investing in growth initiatives.
Net income for the quarter was $2.9 billionb, or $4.08 per diluted share, a slight decrease compared to the prior year, primarily due to a significant one-time gain in the prior year from the sale of Accertify Inc. Despite this, the underlying operational performance remains strong. Provisions for credit losses saw an increase, largely due to higher reserve builds and a less favorable macroeconomic outlook, although net write-off and delinquency rates remained stable and best-in-class. AXP continued to return capital to shareholders, emphasizing its commitment to shareholder value while maintaining a strong capital position.
02—Key points
Key Highlights
- Total revenues net of interest expense increased by 9% to $17.9 billion for the three months ended June 30, 2025.
- Billed business grew by 7% year-over-year, indicating continued strong customer spending on its platform.
- Net income for the quarter was $2.9 billion, or $4.08 per diluted share.
- Provisions for credit losses increased by 11% to $1.4 billion, reflecting increased reserve builds and a cautious macroeconomic outlook.
- Net card fees saw a significant increase of 20%, driven by new card acquisitions and strong Card Member retention.
- The company returned $2.0 billion of capital to shareholders through share repurchases and dividends.
- International Card Services (ICS) showed particularly strong revenue growth, up 15% year-over-year.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 18, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $10.32B$9.82B | +5.1% |
| Net Income | $2.88B$3.02B | −4.3% |
| EPS (Basic) | $4.08$4.16 | −1.9% |
| EPS (Diluted) | $4.08$4.15 | −1.7% |
| Shares Outstanding (Basic) | 698.00M716.00M | −2.5% |
| Shares Outstanding (Diluted) | 699.00M717.00M | −2.5% |
05—Questions
Frequently Asked Questions
What was the primary driver of revenue growth in the quarter?
The primary driver of revenue growth was the increase in billed business, which rose by 7% year-over-year. This strong spending volume, coupled with a 20% increase in net card fees due to high new card acquisitions and retention, contributed significantly to the 9% rise in total revenues net of interest expense.
How is American Express managing credit risk in the current economic environment?
American Express is proactively managing credit risk by increasing its provisions for credit losses by 11% to $1.4 billion, primarily due to higher reserve builds reflecting a more cautious macroeconomic outlook. Despite this, key credit metrics such as net write-off rates and 30-day delinquency rates remain stable and best-in-class, supported by the company's premium customer base and disciplined risk management.
What is the outlook for international growth?
International Card Services (ICS) demonstrated robust growth, with total revenues net of interest expense increasing by 15% year-over-year. This strong performance was driven by a 15% increase in billed business and a 23% rise in net card fees, indicating successful expansion and strong customer engagement in international markets.
How is American Express returning capital to shareholders?
American Express returned $2.0 billion of capital to shareholders in the second quarter of 2025 through a combination of $1.4 billion in share repurchases and $0.6 billion in common stock dividends. The company remains committed to returning excess capital while maintaining its target capital ratios.
06—Continue