AmEx Sees Profit and Revenue Gains as Wealthy Clients Spend Big

Published 2 hours agoAXP

AmEx Sees Profit and Revenue Gains as Wealthy Clients Spend Big

American Express reported a significant rise in first-quarter profits for 2025, highlighting a 6% year-over-year increase to $2.58 billion, equivalent to $3.64 per share, according to Reuters. This exceeded analysts' expectations, who had predicted earnings of $3.46 per share. This boost in profits reflects the continued spending strength of AmEx's affluent customer base, particularly in the travel and entertainment sectors.

The company's revenue also climbed by 8%, reaching $16.97 billion, slightly surpassing forecasts. Affluent clients' spending behaviors have played a crucial role in this growth, underscoring AmEx's ability to capitalize on high-value customer transactions. These results have reinforced the company's positive revenue outlook, projecting an 8-10% growth for 2025 and earnings between $15 and $15.50 per share, amid broader economic uncertainties.

AmEx's stock performance remains strong, trading at $263.09 as of April 28, 2025, which indicates investor confidence despite a slight dip of $1.72 from the previous close. With intraday highs reaching $268.01, the stock's stability signals investor trust in AmEx's continued financial health. The company's robust market position is clearly reinforced by the spending power of its wealthy clientele.

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