Story perspectives

AmEx Profits Soar 13%, Gen Z Spending Surges

1/31/2026

Summary

Story summary

American Express (AmEx) reported a 13% rise in Q4 2025 profit to $2.46 billion, or $3.53 per share.
Affluent customers, especially Gen Z and Millennials, now spend more on AmEx cards than Gen X.
The holiday-quarter profit forecast missed expectations, while 2026 EPS is guided at $17.30 to $17.90, above analysts' estimates.
AmEx plans to raise its quarterly dividend.
Analysts say AmEx's premium-customer focus helps it navigate economic challenges, with revenue growth expected at 9% to 10%.

History

Historical Context

American Express, founded in 1850, transformed from a freight forwarding company to a financial services giant, launching its first credit card in 1958. By 2023, it had issued 141.2 million cards globally, with an average annual spend of $24,059 per cardholder. The company's recent profit surge, driven by younger consumers, underscores a significant shift in spending habits and its strategy to cater to affluent customers.

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Story summary

American Express (AmEx) reported a 13% rise in Q4 2025 profit to $2.46 billion, or $3.53 per share.
Affluent customers, especially Gen Z and Millennials, now spend more on AmEx cards than Gen X.
The holiday-quarter profit forecast missed expectations, while 2026 EPS is guided at $17.30 to $17.90, above analysts' estimates.
AmEx plans to raise its quarterly dividend.
Analysts say AmEx's premium-customer focus helps it navigate economic challenges, with revenue growth expected at 9% to 10%.

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