Strong First Quarter Performance

The American Express Company has kicked off fiscal 2025 with impressive results, announcing a 7% increase in first-quarter revenues, reaching $16.96 billion. This growth underscores the company's robust financial health and strategic positioning in the market.

Net Income and EPS on the Rise

Net income saw a 6% year-over-year increase, totaling $2.5 billion. Furthermore, diluted earnings per share (EPS) experienced a significant 9% jump, from $3.33 to $3.64 per share. Looking ahead, American Express forecasts its full-year EPS to land between $15.00 and $15.50, signaling confidence in its continued growth trajectory.

CEO's Optimistic Outlook

"Our first-quarter results highlight the strength of our premium customer base," stated CEO Stephen Squeri. He noted an 8% year-over-year increase in FX-adjusted revenue, or 9% when excluding the leap year impact, reaching $17.0 billion. Additionally, total Card Member spending grew by 6%, or 7% excluding the leap year impact, reflecting sustained consumer confidence and spending.

Market Reaction

Despite the positive earnings report, American Express's stock dipped 1.15% in premarket trading following the announcement, indicating a cautious investor response to the news.