01—Abstract
Summary
Summary of the 10-Q filed October 17, 2025. Cited figures are marked; the original filing is the authoritative source.
American Express Company (AXP) reported a strong third quarter of 2025, with net income of $2.9 billiona, or $4.14 per diluted share, representing a 16% increase year-over-year.
Total revenues net of interest expense grew 11% to $18.4 billionb, driven by a 9% increase in billed business globally. This growth was propelled by robust spending across all regions and customer segments, with particular strength in U.S. Consumer Services and International Card Services. The company highlighted successful new product launches, such as the refreshed U.S. Consumer and Business Platinum Cards, which have seen strong early demand.
Credit quality remains a key strength, with net write-off and delinquency rates stable and best-in-class, supported by a premium global customer base and disciplined risk management. Provisions for credit losses decreased by 5%c year-over-year, reflecting a lower reserve build despite higher net write-offs.
The company also returned significant capital to shareholders, totaling $2.9 billiond through share repurchases and dividends, while maintaining its Common Equity Tier 1 (CET1) capital ratio within its target range of 10-11%. American Express expressed confidence in its membership-focused business model and its ability to navigate the evolving macroeconomic and competitive landscape.
02—Key points
Key Highlights
- Net income increased by 16% to $2.9 billion, or $4.14 per diluted share, for the third quarter of 2025 compared to the prior year.
- Total revenues net of interest expense grew by 11% to $18.4 billion, driven by a 9% increase in billed business globally.
- Billed business growth accelerated to 9% year-over-year, with particularly strong performance in International Card Services (up 14% reported).
- Credit quality remains robust, with net write-off and delinquency rates stable and best-in-class.
- Provisions for credit losses decreased by 5% to $1.3 billion, primarily due to a lower reserve build.
- The company repurchased $2.3 billion of common stock and paid $0.6 billion in dividends during the quarter, returning a total of $2.9 billion to shareholders.
- The Common Equity Tier 1 (CET1) capital ratio was maintained at 10.5%, within the target range of 10-11%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 17, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $10.41B$9.72B | +7.2% |
| Net Income | $2.90B$2.51B | +15.8% |
| EPS (Basic) | $4.14$3.50 | +18.3% |
| EPS (Diluted) | $4.14$3.49 | +18.6% |
| Shares Outstanding (Basic) | 692.00M708.00M | −2.3% |
| Shares Outstanding (Diluted) | 693.00M709.00M | −2.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of revenue growth in Q3 2025?
The primary driver of revenue growth was the 9% increase in billed business globally, reflecting strong Card Member spending across all segments. This led to a 7% increase in discount revenue, the company's largest revenue line.
How is American Express managing credit risk?
American Express continues to manage credit risk effectively, maintaining stable and best-in-class net write-off and delinquency rates. This is attributed to their premium global customer base, strong risk management focus, and disciplined growth strategy. Provisions for credit losses decreased due to lower reserve builds compared to the prior year.
What is the company's capital return strategy?
American Express is committed to returning excess capital to shareholders. In the third quarter of 2025, they returned $2.9 billion through share repurchases ($2.3 billion) and common stock dividends ($0.6 billion). They plan to continue this strategy while managing their CET1 capital ratio within their target range.
How did the recent product refreshes impact performance?
The company highlighted the successful launch of its refreshed U.S. Consumer and Business Platinum Cards, which have seen strong early demand and engagement. While the refreshed Platinum Cards led to an increase in net card fees due to higher annual fees, this growth moderated from the prior quarter as these higher fees will be recognized over the annual membership period for existing cardholders.
06—Continue