American Express Posts Strong Q1 2025 Results with 9% EPS Growth

American Express (NYSE: AXP) reported a robust first-quarter performance, with net income rising to $2.6 billion, or $3.64 per share, up 9% from $3.33 in the same period last year. Revenue for the quarter grew 7% year-over-year to $17.0 billion, or 8% on an FX-adjusted basis.

The company attributed the growth to higher card member spending, increased net interest income, and continued strong card fee revenue. Billed business reached $387.4 billion, up 6%, while FX-adjusted revenue excluding the leap year effect rose 9%.

Chairman and CEO Stephen J. Squeri emphasized strong credit performance, steady consumer spending, and high demand for premium products. "We are maintaining our full-year revenue growth guidance of 8–10% and earnings per share guidance of $15.00 to $15.50," he said.

Credit loss provisions decreased to $1.2 billion, down from $1.3 billion a year ago, due to a modest net reserve release. Meanwhile, operating expenses rose 10% to $12.5 billion, driven by higher customer engagement costs and greater use of travel-related benefits.

The company’s effective tax rate for the quarter was 22.4%, nearly flat compared to the previous year.

American Express reaffirmed its strategy to focus on long-term growth through disciplined expense management, continued investments in its brand, and backing its premium customer base.