American Express Reports Strong Q4 2025 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy AXP?
Source: NASDAQ.COM
- Significant Revenue Growth: American Express reported a 10% year-over-year revenue increase in Q4 2025, reaching $9.9 billion, demonstrating the effectiveness of its strong brand influence and spend-centric business model, thereby enhancing investor confidence in future growth.
- Net Income Increase: The company's net income rose by 13% year-over-year, indicating success in cost control and customer satisfaction, further solidifying its competitive position in the premium credit card market.
- Membership Fee Revenue: American Express generated $2.6 billion from membership fees, accounting for 24% of total revenue, which reduces dependence on interest income, mitigates credit risk, and enhances financial stability by minimizing cyclicality.
- Shareholder Return Performance: Over the past decade, American Express has achieved a total return of 641%, and despite its current price-to-earnings ratio of 22.9 being near a three-year high, its strong financial performance continues to attract investor interest.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXP is 373.63 USD with a low forecast of 280.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
7 Buy
13 Hold
1 Sell
Moderate Buy
Current: 354.620
Low
280.00
Averages
373.63
High
425.00
Current: 354.620
Low
280.00
Averages
373.63
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
American Express Faces Challenges from Payment Innovations
- Threat from Payment Innovations: The rise of buy now, pay later (BNPL) and stablecoins poses a potential threat to American Express (AXP), which reported $9.9 billion in merchant revenue and $2.6 billion in card membership fees in Q4 2025, indicating strong financial performance.
- Attracting Younger Consumers: American Express has successfully attracted millennial and Gen Z customers, who now represent the largest share of U.S. consumer spending, a trend expected to drive future revenue and earnings growth for the company.
- Exploring Stablecoin Opportunities: American Express is exploring stablecoin-related opportunities, with CEO Steve Squeri noting their potential use in certain payment situations, reflecting the company's commitment to emerging payment methods.
- Increased Market Confidence: The passage of the Genius Act in 2025, which provides a regulatory framework for stablecoins, enhances industry confidence; despite the competitive risks from BNPL and stablecoins, American Express's brand value and customer loyalty remain strong competitive advantages.
See More
American Express Reports Strong Q4 2025 Results Amid Strategic Investments
- Significant Performance Growth: American Express achieved a 10% year-over-year revenue increase and a 16% rise in earnings per share (EPS) in Q4 2025, demonstrating its strong performance and market leadership in the financial services sector.
- Increased Marketing Investment: The company invested $6.3 billion in marketing in 2025, a 75% increase since 2019, which not only boosted customer demand and engagement but also improved credit quality and retention rates, further solidifying its competitive advantage.
- Attraction to Younger Consumers: Although Gen-Z spending accounted for only 6% of total spending, it grew by 36% year-over-year, making it the fastest-growing age group, indicating a broad growth runway for American Express as it penetrates the younger market.
- Outstanding Stock Performance: Over the past five years, American Express's stock has surged 201%, significantly outperforming the S&P 500's 91%, and this trend is expected to continue as the company invests for the future and expands its market share.
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Berkshire Hathaway Boosts American Express Stake to $53 Billion
- Significant Stake: Under Warren Buffett's leadership, Berkshire Hathaway has built a position in American Express worth over $53 billion, representing 22.1% of its outstanding shares and 16.4% of Berkshire's total equity portfolio, reflecting strong confidence in the company.
- Sustained Investment and Growth: American Express reported a 10% year-over-year revenue increase and a 16% rise in earnings per share in Q4 2025, indicating that its business model resonates with younger consumers, particularly with Gen-Z spending growing by 36%.
- Increased Marketing Expenditure: The company invested $6.3 billion in marketing in 2025, a 75% increase since 2019, which has directly driven higher customer demand and engagement, while also improving credit quality and retention rates.
- Technology-Driven Innovation: American Express is rolling out a cloud-based data analytics model for deeper personalization in its marketing, which is expected to yield better market performance and further solidify its competitive advantage in the financial services industry.
See More
American Express Stock Soars with Successful Premium Strategy
- Outstanding Stock Performance: As of February 5, 2026, American Express's stock has surged 20% over the past six months, doubled in three years, and tripled in five years, showcasing its strong performance in the financial services sector, significantly outpacing rivals Visa and Mastercard.
- Successful Platinum Card Launch: Despite the annual fee increase from $695 to $895, the newly launched Platinum card has been a hit among consumers, with retention rates remaining stable and modest initial incentives for new cardholders, indicating robust demand for premium services.
- Significant Travel Booking Growth: The relaunch of the Platinum card, combined with the travel experience planning app, has driven a 30% year-over-year increase in travel bookings, directly reflecting the heightened engagement of cardholders as noted by CEO Stephen Squeri, further solidifying American Express's position in the luxury market.
- Flexible Strategic Planning: American Express operates without long-term financial goals, instead adapting through five core strategic pillars focusing on premium services, data-driven technology investments, international expansion, and refreshing existing products, ensuring strong returns for shareholders even in challenging economic conditions.
See More
Microsoft and American Express: Long-Term Investment Opportunities
- Microsoft Financial Performance: Microsoft boasts a market cap of $3.1 trillion, and despite a recent quarterly revenue growth of 17%, its Azure cloud business's 39% growth fell slightly short of expectations, indicating high market expectations for future growth; however, the long-term growth potential remains strong despite short-term stock price declines.
- Significant Profit Growth: In the last quarter, Microsoft achieved a profit of $38.5 billion, a substantial increase from $24.1 billion a year ago, demonstrating its robust profitability and ongoing investment capacity, which can support future acquisitions and business expansion.
- American Express Stability: American Express generated $72.2 billion in revenue for 2025, reflecting a 10% year-over-year increase, and despite economic challenges, card member spending remains strong, showcasing its stability and growth potential in the credit card market.
- Dividend Growth Outlook: American Express plans to increase its dividend by 16% this year, and with a low payout ratio of around 20%, there is ample room for future dividend increases, further enhancing its appeal as a long-term investment.
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American Express Faces Threat of Interest Rate Cap
- Market Performance Fluctuation: American Express stock rose nearly 25% in 2025, significantly outperforming the S&P 500's 16% gain, but flipped to negative early in the new year due to Trump's unexpected demand for a 10% interest rate cap, indicating market sensitivity to potential risks.
- Policy Risk Analysis: Trump's interest rate cap proposal spooked investors, although it did not take effect in the short term and he lacks the authority to unilaterally impose such limits, suggesting that market reactions may be overblown and investors should focus on long-term fundamentals.
- Strong Financial Performance: American Express reported a 10% year-over-year revenue growth in its latest Q4 earnings, with net revenue nearing $19 billion and net income hitting $2.5 billion, demonstrating the company's robust performance and customer loyalty in a competitive credit card market.
- Investment Opportunity Assessment: Despite facing short-term pressures, analysts believe that buying American Express stock at the current price is a wise move for finance sector investors, especially given its ongoing growth, which highlights the company's defensive advantages in the market.
See More
American Express Faces Challenges from Payment Innovations
- Threat from Payment Innovations: The rise of buy now, pay later (BNPL) and stablecoins poses a potential threat to American Express (AXP), which reported $9.9 billion in merchant revenue and $2.6 billion in card membership fees in Q4 2025, indicating strong financial performance.
- Attracting Younger Consumers: American Express has successfully attracted millennial and Gen Z customers, who now represent the largest share of U.S. consumer spending, a trend expected to drive future revenue and earnings growth for the company.
- Exploring Stablecoin Opportunities: American Express is exploring stablecoin-related opportunities, with CEO Steve Squeri noting their potential use in certain payment situations, reflecting the company's commitment to emerging payment methods.
- Increased Market Confidence: The passage of the Genius Act in 2025, which provides a regulatory framework for stablecoins, enhances industry confidence; despite the competitive risks from BNPL and stablecoins, American Express's brand value and customer loyalty remain strong competitive advantages.
See More
American Express Reports Strong Q4 2025 Results Amid Strategic Investments
- Significant Performance Growth: American Express achieved a 10% year-over-year revenue increase and a 16% rise in earnings per share (EPS) in Q4 2025, demonstrating its strong performance and market leadership in the financial services sector.
- Increased Marketing Investment: The company invested $6.3 billion in marketing in 2025, a 75% increase since 2019, which not only boosted customer demand and engagement but also improved credit quality and retention rates, further solidifying its competitive advantage.
- Attraction to Younger Consumers: Although Gen-Z spending accounted for only 6% of total spending, it grew by 36% year-over-year, making it the fastest-growing age group, indicating a broad growth runway for American Express as it penetrates the younger market.
- Outstanding Stock Performance: Over the past five years, American Express's stock has surged 201%, significantly outperforming the S&P 500's 91%, and this trend is expected to continue as the company invests for the future and expands its market share.
See More
Berkshire Hathaway Boosts American Express Stake to $53 Billion
- Significant Stake: Under Warren Buffett's leadership, Berkshire Hathaway has built a position in American Express worth over $53 billion, representing 22.1% of its outstanding shares and 16.4% of Berkshire's total equity portfolio, reflecting strong confidence in the company.
- Sustained Investment and Growth: American Express reported a 10% year-over-year revenue increase and a 16% rise in earnings per share in Q4 2025, indicating that its business model resonates with younger consumers, particularly with Gen-Z spending growing by 36%.
- Increased Marketing Expenditure: The company invested $6.3 billion in marketing in 2025, a 75% increase since 2019, which has directly driven higher customer demand and engagement, while also improving credit quality and retention rates.
- Technology-Driven Innovation: American Express is rolling out a cloud-based data analytics model for deeper personalization in its marketing, which is expected to yield better market performance and further solidify its competitive advantage in the financial services industry.
See More
American Express Stock Soars with Successful Premium Strategy
- Outstanding Stock Performance: As of February 5, 2026, American Express's stock has surged 20% over the past six months, doubled in three years, and tripled in five years, showcasing its strong performance in the financial services sector, significantly outpacing rivals Visa and Mastercard.
- Successful Platinum Card Launch: Despite the annual fee increase from $695 to $895, the newly launched Platinum card has been a hit among consumers, with retention rates remaining stable and modest initial incentives for new cardholders, indicating robust demand for premium services.
- Significant Travel Booking Growth: The relaunch of the Platinum card, combined with the travel experience planning app, has driven a 30% year-over-year increase in travel bookings, directly reflecting the heightened engagement of cardholders as noted by CEO Stephen Squeri, further solidifying American Express's position in the luxury market.
- Flexible Strategic Planning: American Express operates without long-term financial goals, instead adapting through five core strategic pillars focusing on premium services, data-driven technology investments, international expansion, and refreshing existing products, ensuring strong returns for shareholders even in challenging economic conditions.
See More
Microsoft and American Express: Long-Term Investment Opportunities
- Microsoft Financial Performance: Microsoft boasts a market cap of $3.1 trillion, and despite a recent quarterly revenue growth of 17%, its Azure cloud business's 39% growth fell slightly short of expectations, indicating high market expectations for future growth; however, the long-term growth potential remains strong despite short-term stock price declines.
- Significant Profit Growth: In the last quarter, Microsoft achieved a profit of $38.5 billion, a substantial increase from $24.1 billion a year ago, demonstrating its robust profitability and ongoing investment capacity, which can support future acquisitions and business expansion.
- American Express Stability: American Express generated $72.2 billion in revenue for 2025, reflecting a 10% year-over-year increase, and despite economic challenges, card member spending remains strong, showcasing its stability and growth potential in the credit card market.
- Dividend Growth Outlook: American Express plans to increase its dividend by 16% this year, and with a low payout ratio of around 20%, there is ample room for future dividend increases, further enhancing its appeal as a long-term investment.
See More
American Express Faces Threat of Interest Rate Cap
- Market Performance Fluctuation: American Express stock rose nearly 25% in 2025, significantly outperforming the S&P 500's 16% gain, but flipped to negative early in the new year due to Trump's unexpected demand for a 10% interest rate cap, indicating market sensitivity to potential risks.
- Policy Risk Analysis: Trump's interest rate cap proposal spooked investors, although it did not take effect in the short term and he lacks the authority to unilaterally impose such limits, suggesting that market reactions may be overblown and investors should focus on long-term fundamentals.
- Strong Financial Performance: American Express reported a 10% year-over-year revenue growth in its latest Q4 earnings, with net revenue nearing $19 billion and net income hitting $2.5 billion, demonstrating the company's robust performance and customer loyalty in a competitive credit card market.
- Investment Opportunity Assessment: Despite facing short-term pressures, analysts believe that buying American Express stock at the current price is a wise move for finance sector investors, especially given its ongoing growth, which highlights the company's defensive advantages in the market.
See More
