American Express Q4 2025 American Express Co Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 American Express Co Earnings Call
Speaker #1: Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q4 2025 earnings call. At this time, all participants are on a listen-only mode.
Operator: Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q4 2025 Earnings Call. At this time, all participants are on a listen-only mode. Later, we will conduct a question-and-answer session. If you wish to ask a question, please press star, then one on your touchtone phone. You will hear a tone indicating you have been placed in queue. You may remove yourself from the queue at any time by pressing star, then two. If you are using a speakerphone, please pick up the handset before pressing the numbers. Should you require assistance during the call, please press star, then zero. As a reminder, today's call is being recorded. I would now like to turn the conference over to our host, Head of Investor Relations, Mr. Karthik Ramachandran. Thank you. Please go ahead.
Operator: Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q4 2025 Earnings Call. At this time, all participants are on a listen-only mode. Later, we will conduct a question-and-answer session. If you wish to ask a question, please press star, then one on your touchtone phone. You will hear a tone indicating you have been placed in queue. You may remove yourself from the queue at any time by pressing star, then two. If you are using a speakerphone, please pick up the handset before pressing the numbers. Should you require assistance during the call, please press star, then zero. As a reminder, today's call is being recorded. I would now like to turn the conference over to our host, Head of Investor Relations, Mr. Karthik Ramachandran. Thank you. Please go ahead.
Speaker #1: Later, we will conduct a question-and-answer session. If you wish to ask a question, please press star, then one on your touch-tone phone. You will hear a tone indicating you have been placed in queue.
Speaker #1: You may remove yourself from the queue at any time by pressing star, then two. If you are using a speakerphone, please pick up the handset before pressing the numbers.
Speaker #1: Should you require assistance during the call, please press star, then zero. As a reminder, today's call is being recorded. I will now like to turn the conference over to our host, head of investor relations, Mr. Kartik Ramachandran.
Speaker #1: Thank you. Please go ahead.
Speaker #2: Thank you, Donna, and thank you all for joining today's call. As a reminder, before we begin, today's discussion contains forward-looking statements about the company's future business and financial performance.
Kartik Ramachandran: Thank you, Donna, and thank you all for joining today's call. As a reminder, before we begin, today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and in our reports on file with the SEC. The discussion today also contains non-GAAP financial measures. Comparable GAAP financial measures are included in this quarter's earnings materials, as well as the earnings materials for the prior periods we discuss. All of these are posted on our website at ir.americanexpress.com. We'll begin today with Steve Squeri, Chairman and CEO, who will start with some remarks about the company's progress and results. And then Christophe Le Caillec, Chief Financial Officer, will provide a more detailed review of our financial performance.
Kartik Ramachandran: Thank you, Donna, and thank you all for joining today's call. As a reminder, before we begin, today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and in our reports on file with the SEC. The discussion today also contains non-GAAP financial measures. Comparable GAAP financial measures are included in this quarter's earnings materials, as well as the earnings materials for the prior periods we discuss. All of these are posted on our website at ir.americanexpress.com. We'll begin today with Steve Squeri, Chairman and CEO, who will start with some remarks about the company's progress and results. And then Christophe Le Caillec, Chief Financial Officer, will provide a more detailed review of our financial performance.
Speaker #2: These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and in our reports on file with the SEC.
Speaker #2: The discussion today also contains non-GAAP financial measures. Comparable GAAP financial measures are included in this quarter's earnings materials, as well as the earnings materials for the prior periods we discussed.
Speaker #2: All of these are posted on our website at
Speaker #1: IR . AMERICAN EXPRESS CO . We'll begin today with Stephen Squeri chairman and CEO , who will start with some remarks about the company's progress and results .
Speaker #1: And then Christophe Caillec chief Financial Officer Will chairman and CEO , who will start with some remarks about the company's progress and results .
Kartik Ramachandran: After that, we'll move to a Q&A session on the results with both Steve and Christophe. With that, let me turn it over to Steve.
After that, we'll move to a Q&A session on the results with both Steve and Christophe. With that, let me turn it over to Steve.
Speaker #1: And then Christophe Caillec chief Financial officer will provide a more detailed review of our financial performance . After that , we'll move to a with over to Steve and on the results Karthik .
Stephen J. Squeri: Thank you, Karthik. Good morning, and welcome to our fourth quarter earnings call. We had another year of strong performance, continuing the momentum we delivered since introducing our long-term growth aspirations in January 2022. Full year revenues were up 10% to a record $72 billion, and EPS was $15.38, up 15% over last year, excluding the Accertify gain. Card member spending was strong throughout the year. Card fee growth continued in double digits for 30 straight quarters, and we maintained excellent credit quality. Importantly, we continued to invest in areas that strengthen our membership model and drive our growth. For example, we continued our successful product refresh strategy with refreshes in close to a dozen countries around the world, including the launch of our new US consumer and small business Platinum cards.
Steve Squeri: Thank you, Karthik. Good morning, and welcome to our fourth quarter earnings call. We had another year of strong performance, continuing the momentum we delivered since introducing our long-term growth aspirations in January 2022. Full year revenues were up 10% to a record $72 billion, and EPS was $15.38, up 15% over last year, excluding the Accertify gain. Card member spending was strong throughout the year. Card fee growth continued in double digits for 30 straight quarters, and we maintained excellent credit quality. Importantly, we continued to invest in areas that strengthen our membership model and drive our growth. For example, we continued our successful product refresh strategy with refreshes in close to a dozen countries around the world, including the launch of our new US consumer and small business Platinum cards.
Speaker #1: both Christophe . Steve . let me turn it
Speaker #1: With
Speaker #2: to our fourth quarter earnings morning and welcome We call . had year of another strong performance continuing the momentum . We delivered since introducing our long term growth aspirations in January of 2022 .
Speaker #2: Digits for three straight quarters and we maintained excellent credit quality . Importantly , we continue to invest in areas that strengthen our membership model and drive .
Speaker #2: our growth example , For we continued our successful product refresh strategy with refreshes in close to a dozen countries around the world , including the launch of our new US consumer and small Business Platinum cards .
Stephen J. Squeri: We renewed and expanded our relationships with key international co-brand partners, including British Airways, ANA, and Air France-KLM. We continued to build our membership assets with new lounges, the expansion of our hotel network, the Toast partnership, and a series of new card member experiences. We expanded global merchant acceptance to over 170 million locations worldwide, and we continued to deliver innovative mobile experience. Turning to 2026 guidance, given the strength and stability in our premium customer base, the momentum we're generating from our investments in the business, and the flexibility we have to drive leverage in our business model, we expect 2026 revenue growth of 9% to 10% and EPS of $17.30 to $17.90.
We renewed and expanded our relationships with key international co-brand partners, including British Airways, ANA, and Air France-KLM. We continued to build our membership assets with new lounges, the expansion of our hotel network, the Toast partnership, and a series of new card member experiences. We expanded global merchant acceptance to over 170 million locations worldwide, and we continued to deliver innovative mobile experience. Turning to 2026 guidance, given the strength and stability in our premium customer base, the momentum we're generating from our investments in the business, and the flexibility we have to drive leverage in our business model, we expect 2026 revenue growth of 9% to 10% and EPS of $17.30 to $17.90.
Speaker #2: We renewed and expanded our relationships with key international Co-brand partners , including British Airways and KLM , Ana Air France . . We continue to build our membership assets with new lounges .
Speaker #2: expansion of our hotel The network , the Toast Partnership , and a series of new card member experiences , and we expanded Global Merchant acceptance to over 170 million locations worldwide .
Speaker #2: continue to And we deliver innovative mobile experiences . Turning to 2026 guidance . Given the strength and stability in our customer premium momentum we're generating from our investments in the business and the flexibility we have to drive leverage in our business model , we expect 2026 revenue growth of 9 to 10% and EPs of $17.30 to $17.90 .
Stephen J. Squeri: We will also continue our strong track record of returning capital to shareholders with a planned 16% increase in the quarterly dividend to $0.95. For the last several years, we've been managing the company with a focus on accelerated revenue and EPS growth. This has generated consistently strong momentum, which gives me confidence in our ability to not only deliver on our 2026 guidance, but also to continue driving strong growth over the long term. The key to driving our growth has been our investment philosophy. We consistently invest to strengthen our competitive advantages across key areas, including our customer value propositions, marketing, technology, partnerships, and coverage. In 2025, for example, we invested $6.3 billion in marketing, an increase from around 75% since 2019, and in just the last two years, both marketing and technology investments are up 20+%.
We will also continue our strong track record of returning capital to shareholders with a planned 16% increase in the quarterly dividend to $0.95. For the last several years, we've been managing the company with a focus on accelerated revenue and EPS growth. This has generated consistently strong momentum, which gives me confidence in our ability to not only deliver on our 2026 guidance, but also to continue driving strong growth over the long term. The key to driving our growth has been our investment philosophy. We consistently invest to strengthen our competitive advantages across key areas, including our customer value propositions, marketing, technology, partnerships, and coverage. In 2025, for example, we invested $6.3 billion in marketing, an increase from around 75% since 2019, and in just the last two years, both marketing and technology investments are up 20+%.
Speaker #2: We will also continue our track record—capital strong—of returning to shareholders, with a planned 16% increase in the quarterly dividend to $0.95. For the last several years, we've been managing a company with a focus on accelerated revenue and EPS growth.
Speaker #2: It is this consistently strong momentum, which gives me confidence in our ability to not only deliver on our 2026 guidance, but also to drive strong continued growth over the long term.
Speaker #2: key to The driving our growth has been our investment philosophy . We consistently invest to strengthen our competitive advantages across key areas , including our customer value propositions , marketing technology , partnerships and coverage .
Speaker #2: In 2025 , for example , we invested $6.3 billion in marketing , an increase of around 75% since 2019 . And in just the last two years , both marketing and technology investments are up 20 plus percent apply a return outcomes focusing .
Stephen J. Squeri: We apply a rigorous return discipline, focusing on outcomes that drive growth. For example, after a product refresh, in addition to its financial results, we measure customer demand and engagement, credit quality, retention, and relationship expansion. In evaluating our marketing investments, we measure the spend and revenue efficiency of our marketing dollars across thousands of campaigns. As a result of this process, we've created a robust marketplace of ideas where we fund the best opportunities from across the company. This return discipline, combined with our investment flexibility, enables us to dynamically reallocate resources to those opportunities that represent the highest returns. A great example of this is our recent decision to quickly redirect marketing investments to our US Platinum products, given the strength we saw towards the end of the year.
We apply a rigorous return discipline, focusing on outcomes that drive growth. For example, after a product refresh, in addition to its financial results, we measure customer demand and engagement, credit quality, retention, and relationship expansion. In evaluating our marketing investments, we measure the spend and revenue efficiency of our marketing dollars across thousands of campaigns. As a result of this process, we've created a robust marketplace of ideas where we fund the best opportunities from across the company. This return discipline, combined with our investment flexibility, enables us to dynamically reallocate resources to those opportunities that represent the highest returns. A great example of this is our recent decision to quickly redirect marketing investments to our US Platinum products, given the strength we saw towards the end of the year.
Speaker #2: rigorous discipline , We growth for example product , after a refresh . In addition to its financial results , we measured customer demand and engagement , credit quality , retention and relationship expansion .
Speaker #2: evaluating In our marketing investments , we measure the spend and revenue efficiency of our marketing dollars across thousands of campaigns . As a result of this process , we've created a marketplace of robust ideas where we fund the best opportunities from across the company .
Speaker #2: return discipline , combined This with our investment flexibility , enables us to dynamically reallocate resources to those opportunities that represent the highest returns A great .
Speaker #2: example of this is our recent decision to quickly redirect marketing investments to our US platinum products . Given the strength we saw towards the end of the year one of the key , lessons we've learned in executing this philosophy is that the investments we make in our value in propositions multiple pay off ways , including increasing customer demand and engagement , driving business to our merchant partners , maintaining strong credit performance , and driving efficiencies by enabling marketing dollars to go further .
Stephen J. Squeri: One of the key lessons we've learned in executing this philosophy is that the investments we make in our value propositions pay off in multiple ways, including increasing customer demand and engagement, driving business to our merchant partners, maintaining strong credit performance, and driving efficiencies by enabling our marketing dollars to go further.... We're seeing this in our new US Consumer Platinum Card, which continues to perform even better than our expectations. Customer demand is high, engagement is up, credit quality continues to be excellent, and we're seeing no change in retention rates as the new fee kicks in. At the same time, investments in our marketing capabilities have driven acquisition incentives to some of the lowest levels in the last couple of years. Powering the success of our product refresh strategy and our growth overall, are the investments we're making in technology.
One of the key lessons we've learned in executing this philosophy is that the investments we make in our value propositions pay off in multiple ways, including increasing customer demand and engagement, driving business to our merchant partners, maintaining strong credit performance, and driving efficiencies by enabling our marketing dollars to go further.... We're seeing this in our new US Consumer Platinum Card, which continues to perform even better than our expectations. Customer demand is high, engagement is up, credit quality continues to be excellent, and we're seeing no change in retention rates as the new fee kicks in. At the same time, investments in our marketing capabilities have driven acquisition incentives to some of the lowest levels in the last couple of years. Powering the success of our product refresh strategy and our growth overall, are the investments we're making in technology.
Speaker #2: We're seeing this in our new US Consumer Platinum card , which continues to perform even better than our expectations . Customer demand is high , engagement is up , credit quality continues to be excellent , and we're seeing no change in retention rates as the new fee kicks in .
Speaker #2: At the same time, investments in our marketing capabilities have driven acquisition incentives to some of the lowest levels in the last couple of years, powering the success of our product refresh strategy and our growth overall.
Stephen J. Squeri: This enables us to quickly introduce new capabilities that drive customer engagement and satisfaction, add new partners in categories that our card members value, and develop new customer experiences that enrich Amex membership. We now spend $5 billion annually on technology. At a high level, we categorize our tech spending into two broad categories. One, I would call run the business investments, things like infrastructure, software licenses, and cybersecurity, and investments in development activities. Development includes things like new mobile experiences and capabilities, and the ongoing modernization of our core systems, which we upgrade regularly, similar to our product refresh strategy to stay on the cutting edge. For example, we're rolling out our new third-generation data and analytics platform, which will enable greater personalization in marketing, improve servicing experiences, augment our industry-leading fraud capabilities, and enable new Gen AI and agentic use cases.
This enables us to quickly introduce new capabilities that drive customer engagement and satisfaction, add new partners in categories that our card members value, and develop new customer experiences that enrich Amex membership. We now spend $5 billion annually on technology. At a high level, we categorize our tech spending into two broad categories. One, I would call run the business investments, things like infrastructure, software licenses, and cybersecurity, and investments in development activities. Development includes things like new mobile experiences and capabilities, and the ongoing modernization of our core systems, which we upgrade regularly, similar to our product refresh strategy to stay on the cutting edge. For example, we're rolling out our new third-generation data and analytics platform, which will enable greater personalization in marketing, improve servicing experiences, augment our industry-leading fraud capabilities, and enable new Gen AI and agentic use cases.
Speaker #2: On the investments we're making in technology . This enables us to quickly introduce new capabilities that drive customer engagement and satisfaction , add new partners in that our card members value and develop new customer experiences that enrich Amex membership .
Speaker #2: We now spend $5 billion annually on technology at a high level . We categorize our tech spending into two broad categories one I would call run the business investments .
Speaker #2: Things like infrastructure , software licenses and cybersecurity , and investments in development activities . Development includes things like new mobile experiences and capabilities , and the ongoing modernization of our core which we upgrade systems , regularly .
Speaker #2: Similar to our product refresh strategy to stay on the cutting edge for example , we're rolling out our new third generation data and analytics platform , which will enable greater personalization and marketing , improve servicing experiences , augment our industry leading fraud capabilities , and enable new gen AI and Agentic use cases .
Stephen J. Squeri: The new platform, which is built on the public cloud, is already reducing the time for key processes in marketing and fraud by 90%, and we expect to migrate 100% of our data and analytics processes to the new platform by 2027. We continue to invest in enhancing our app experiences in a number of ways, from the new Platinum onboarding experience and the launch of our travel app, to digital journeys that enable self-servicing. As a result, we're driving more revenue-generating engagement via the apps, and we're creating operating efficiencies from digital self-servicing. Over the last three years, for example, the number of calls per account coming into our service centers has dropped by 25%.
The new platform, which is built on the public cloud, is already reducing the time for key processes in marketing and fraud by 90%, and we expect to migrate 100% of our data and analytics processes to the new platform by 2027. We continue to invest in enhancing our app experiences in a number of ways, from the new Platinum onboarding experience and the launch of our travel app, to digital journeys that enable self-servicing. As a result, we're driving more revenue-generating engagement via the apps, and we're creating operating efficiencies from digital self-servicing. Over the last three years, for example, the number of calls per account coming into our service centers has dropped by 25%.
Speaker #2: The new platform , which is built on the public cloud , is already reducing the key time for processes in marketing and fraud by 90% , and we expect to migrate 100% of our data and analytics processes to the new platform by 2027 .
Speaker #2: We continue to invest in enhancing our app experiences in a number of ways. From the new Platinum onboarding experience and the launch of our travel app to digital journeys that enable self-servicing.
Speaker #2: As a result , we're driving more revenue generating engagement via the apps , and we're creating , operating efficiencies from digital self-servicing over the last three years , for example , the number of calls per account coming into our service centers has dropped by 25% .
Stephen J. Squeri: We're also expanding our digital capabilities for business customers, including the integration of Center's expense management solution, which we plan to launch later this year as part of a suite of offerings for small and middle-market commercial customers. And we've created an enterprise AI enablement layer to support the development and launch of Gen AI and agentic capabilities, including those already in market, such as our Travel Counselor Assist tool, our dining companion experience, as well as the deployment of Gen AI tools to nearly all our colleagues worldwide. By successfully executing this investment philosophy over the last several years, we've delivered on our goals of accelerating revenue and EPS growth while maintaining best-in-class credit performance. At the same time, we are substantially increasing capital returns to shareholders. Our expectations for 2026 are no different.
We're also expanding our digital capabilities for business customers, including the integration of Center's expense management solution, which we plan to launch later this year as part of a suite of offerings for small and middle-market commercial customers. And we've created an enterprise AI enablement layer to support the development and launch of Gen AI and agentic capabilities, including those already in market, such as our Travel Counselor Assist tool, our dining companion experience, as well as the deployment of Gen AI tools to nearly all our colleagues worldwide. By successfully executing this investment philosophy over the last several years, we've delivered on our goals of accelerating revenue and EPS growth while maintaining best-in-class credit performance. At the same time, we are substantially increasing capital returns to shareholders. Our expectations for 2026 are no different.
Speaker #2: We're also expanding our digital capabilities for business customers , including the integration of expense management , solution , which we plan to launch later this year as part of a suite of offerings for small and middle market commercial customers .
Speaker #2: And we've created an enterprise AI enablement enablement layer to support the development and launch of Gen AI and agenda capabilities , including those already in market , such as our travel counselor Assist our tool , dining companion experience , as well as the gen deployment of AI tools to nearly all our colleagues worldwide successfully last over the philosophy .
Speaker #2: several years , investment we've By delivered on our goals of accelerating revenue and EPs growth while maintaining best in class credit performance . At the same time , we are substantially increasing capital returns to shareholders .
Stephen J. Squeri: We expect to continue delivering the pace and quality of growth we've seen in recent years, while also continuing to invest in areas to sustain our growth and deliver strong capital returns to shareholders. In summary, we are operating from a position of strength, thanks to our loyal premium customers and the dedication of our world-class colleagues. I'm confident in our colleagues' ability to continue to innovate for our customers as we invest for growth to drive long, long-term, consistent results. Now I'll hand it over to Christophe for more details about the quarter and full year results, and then we'll take your questions.
We expect to continue delivering the pace and quality of growth we've seen in recent years, while also continuing to invest in areas to sustain our growth and deliver strong capital returns to shareholders. In summary, we are operating from a position of strength, thanks to our loyal premium customers and the dedication of our world-class colleagues. I'm confident in our colleagues' ability to continue to innovate for our customers as we invest for growth to drive long, long-term, consistent results. Now I'll hand it over to Christophe for more details about the quarter and full year results, and then we'll take your questions.
Speaker #2: Our expectations for 2026 are no We different . expect to continue delivering the pace and quality of growth we've seen in recent years .
Speaker #2: While also continuing to invest in areas to sustain our growth and deliver strong capital returns to shareholders . In summary , we are operating from a position of strength thanks to our loyal premium customers and the dedication of our world class colleagues .
Speaker #2: And I'm confident our colleagues ability to continue to innovate for our as we customers invest , for growth , to drive long , term long , consistent results .
Christophe Le Caillec: Thanks, Steve, and good morning, everyone. In 2025, we generated 10% revenue growth and EPS of $15.38, up 15% ex-Accertify. If you look back at our performance over the past 3 years, what you see is a track record of delivering consistent and strong results. We have driven average return growth of 11% per year and have generated mid-teens EPS growth for 3 consecutive years. Importantly, we delivered these results while maintaining a disciplined focus on premium products and high credit standards. Our momentum continued in 2025. We saw healthy spending and loan growth throughout the year, and continued demand for our premium products. Net Card Fees grew at 18% and reached a record of $10 billion for the year.
Christophe Le Caillec: Thanks, Steve, and good morning, everyone. In 2025, we generated 10% revenue growth and EPS of $15.38, up 15% ex-Accertify. If you look back at our performance over the past 3 years, what you see is a track record of delivering consistent and strong results. We have driven average return growth of 11% per year and have generated mid-teens EPS growth for 3 consecutive years. Importantly, we delivered these results while maintaining a disciplined focus on premium products and high credit standards. Our momentum continued in 2025. We saw healthy spending and loan growth throughout the year, and continued demand for our premium products. Net Card Fees grew at 18% and reached a record of $10 billion for the year.
Speaker #2: Now , I'll hand it over to more Christophe for details and full about the quarter year results . And then we'll take your
Speaker #2: . morning , questions
Speaker #3: Thanks , Steve ,
Speaker #3: In everyone . 2025 , we generated 10% revenue growth and EPs of $15.38 , up 15% . Certify . If you look back at our performance over the past three years , what you see is a track record of delivering consistent and strong results .
Speaker #3: We have driven average return growth of 11% per year and have generated mid-teens EPS growth for three consecutive years. Importantly, we delivered these results while maintaining a disciplined focus on premium products and high credit standards.
Speaker #3: Our momentum continued in 2025 with so healthy spending and loan growth throughout the year , and continued demand for our premium products . Net card fee grew at 18% and reached a record of $10 billion for the year .
Christophe Le Caillec: We drove greater scale of the business through increased investment, enhancing our ability to drive operating leverage over the long term. Overall, our business model is performing as we expected, driving our strategy in the year ahead. Turning to billed business trends for the quarter. Total spend was up 8%, FX-adjusted, consistent with Q3. Both goods and services and P&E continued to grow at a faster pace than during the first half of the year. Retail spending continued to show good momentum in the quarter, up 10%, and spending at luxury retail merchants was up 15%, reflecting the continued strength of our customer base. Growth in airline and lodging spend was largely stable, and restaurant spending was up 9% once again this quarter.
We drove greater scale of the business through increased investment, enhancing our ability to drive operating leverage over the long term. Overall, our business model is performing as we expected, driving our strategy in the year ahead. Turning to billed business trends for the quarter. Total spend was up 8%, FX-adjusted, consistent with Q3. Both goods and services and P&E continued to grow at a faster pace than during the first half of the year. Retail spending continued to show good momentum in the quarter, up 10%, and spending at luxury retail merchants was up 15%, reflecting the continued strength of our customer base. Growth in airline and lodging spend was largely stable, and restaurant spending was up 9% once again this quarter.
Speaker #3: And drove we greater scale of the business through increased investment , enhancing our ability to drive operating leverage over the long term . Overall , our as we is business model performing expected .
Speaker #3: Driving our confidence in the year ahead . Turning to build business trends for the quarter . Total spend was up 8% . FX-adjusted consistent with Q3 .
Speaker #3: Both goods and services and T&E continued to grow at a faster pace than during the first half of the year . spending Retail continued to show good momentum in the quarter , up 10% and spending at luxury retail merchants was up 15% , reflecting the continued strength of our customer base .
Christophe Le Caillec: Our dining assets are driving high levels of engagement, with spend at US Resy restaurants by US consumer customers up by more than 20%. Momentum from younger card members, from younger customers, also continued. As of Q4, millennial and Gen Z customers now make up the largest share of US consumer spending, and they remain the fastest-growing cohorts. That momentum is driven by our success in attracting younger customers into the franchise. For example, the average age of new customers is 33 on the new US Consumer Platinum card, and 29 on the US Consumer Gold card, giving us a long runway to grow our relationships with these customers over time. International also delivered another very strong quarter, with spend up 12% FX-adjusted. Growth remains broad-based across consumer and business customers and across geographies.
Our dining assets are driving high levels of engagement, with spend at US Resy restaurants by US consumer customers up by more than 20%. Momentum from younger card members, from younger customers, also continued. As of Q4, millennial and Gen Z customers now make up the largest share of US consumer spending, and they remain the fastest-growing cohorts. That momentum is driven by our success in attracting younger customers into the franchise. For example, the average age of new customers is 33 on the new US Consumer Platinum card, and 29 on the US Consumer Gold card, giving us a long runway to grow our relationships with these customers over time. International also delivered another very strong quarter, with spend up 12% FX-adjusted. Growth remains broad-based across consumer and business customers and across geographies.
Speaker #3: Growth in airline and lodging was largely spend stable , and restaurant spending was up 9% . Once again this quarter . Our dining assets are driving high levels of engagement with spend at us .
Speaker #3: Restaurants by US consumer customers up by more than 20% . Momentum from younger card members from younger customers also continued . As of Q4 , Millennial and Gen Z customers now make up the largest share of US consumer spending , and they remain the fastest growing cohorts .
Speaker #3: That momentum is driven by our success in attracting younger customers into the franchise. For example, the average age of new customers is 33 on the U.S. Consumer Platinum Card and 29 on the U.S. Consumer Gold Card, giving us a long runway to grow our relationships with these customers over time.
Speaker #3: International also delivered another very strong quarter . spent We up 12% FX-adjusted growth broad , based remains across and business consumer customers and across geographies .
Christophe Le Caillec: Overall, transactions growth of 9% was consistent with what we've seen throughout the year and reflects continued engagement from our customers. Looking at the first three weeks of January, we continue to see good momentum in spend trends. As we look ahead to 2026, we are encouraged by the strength and stability that we continue to see across our customer base. Turning to new acquisition, demand for our premium products remains very strong. Although the overall number of new cards is down versus Q3, we reallocated marketing dollars away from lower-cost cash-back products to Platinum, and Platinum new acquisitions were up significantly. In fact, the percentage of fee-paying products for US Consumer is up 8 percentage points year-over-year. Turning to balance growth and credit. Loans and cardmember receivables increased 7% year-over-year, FX-adjusted, growing at a similar pace to billed business.
Overall, transactions growth of 9% was consistent with what we've seen throughout the year and reflects continued engagement from our customers. Looking at the first three weeks of January, we continue to see good momentum in spend trends. As we look ahead to 2026, we are encouraged by the strength and stability that we continue to see across our customer base. Turning to new acquisition, demand for our premium products remains very strong. Although the overall number of new cards is down versus Q3, we reallocated marketing dollars away from lower-cost cash-back products to Platinum, and Platinum new acquisitions were up significantly. In fact, the percentage of fee-paying products for US Consumer is up 8 percentage points year-over-year. Turning to balance growth and credit. Loans and cardmember receivables increased 7% year-over-year, FX-adjusted, growing at a similar pace to billed business.
Speaker #3: Overall transactions , growth of 9% was consistent with what we've seen throughout the year and reflects continued engagement from our customers . Looking at the first three weeks of January , we continue to see good momentum in spend trends as we look ahead to 2026 .
Speaker #3: We are encouraged by the strength and continue stability customer that we across to see our base new . Turning to acquisition demand for our premium products remains very strong , although the overall number of new cards is versus down Q3 , we reallocated marketing dollars away from lower cost cash back products to platinum and platinum .
Speaker #3: New acquisitions were up significantly . In fact , the percentage of fee paying products for US consumer is up 8% points . Percentage points year over year .
Speaker #3: Turning to balance , growth and credit loans and card member receivables increased 7% year over year . FX-adjusted growing at a similar pace to build business .
Christophe Le Caillec: There was about a 1 percentage point impact on balance growth from our held-for-sale portfolios again this quarter. In 2026, we expect loans and receivables to continue to grow largely in line with billed business. Our credit performance throughout the year was remarkably strong and stable. Delinquency rates were flat throughout the year, and write-off rates remained best-in-class. Notably, both delinquency and write-off rates are still below 2019 levels. In 2026, we expect credit metrics to remain generally stable, with some seasonal variation in provision across quarters. Turning to revenue on slide 14. Revenue was up 10% FX reported for both Q4 and the full year. Momentum was broad-based across revenue lines, with net card fees, NII, and service fees and other revenue all growing at double-digit rates.
There was about a 1 percentage point impact on balance growth from our held-for-sale portfolios again this quarter. In 2026, we expect loans and receivables to continue to grow largely in line with billed business. Our credit performance throughout the year was remarkably strong and stable. Delinquency rates were flat throughout the year, and write-off rates remained best-in-class. Notably, both delinquency and write-off rates are still below 2019 levels. In 2026, we expect credit metrics to remain generally stable, with some seasonal variation in provision across quarters. Turning to revenue on slide 14. Revenue was up 10% FX reported for both Q4 and the full year. Momentum was broad-based across revenue lines, with net card fees, NII, and service fees and other revenue all growing at double-digit rates.
Speaker #3: was about one percentage point impact on There balance growth from our held for sale portfolios again this quarter . In 2026 , we expect loans and receivables to continue to grow , largely in line with build business .
Speaker #3: Our credit performance throughout the year was remarkably strong and stable. Delinquency rates were flat throughout the year, and write-off rates remained best in class.
Speaker #3: Notably , both delinquency and write off rates are still below 2019 levels in 2026 . We expect credit metrics to remain generally stable , with some seasonal variation in provision across quarters .
Speaker #3: Turning to revenue on slide 14 . Revenue was up 10% . FX reported for both Q4 and the full year . Momentum was broad , based across revenue lines , with net card fees , NII and service fees and other revenue all growing at double digit rates .
Christophe Le Caillec: Net card fees reached record levels, driven by continued success in acquiring new customers onto fee-paying products, our ongoing cycle of product refreshes, and our high retention rates. In Q4, card fees were up 16%, FX adjusted, moderating a bit as we expected. In 2026, we expect card fees, card fee growth to pick up as the year progresses, as we see the impact from the Platinum refresh, exiting the year in the high teens. We have now started applying the new annual fee for US Platinum Card members reaching their renewal anniversaries. For those customers, we have seen no change to our very high retention rates relative to pre-refresh. Net interest income was up 12% again this quarter, continuing to grow faster than balances. We expect NII growth to continue to outpace growth in loans and receivables in 2026. Turning to expense performance.
Net card fees reached record levels, driven by continued success in acquiring new customers onto fee-paying products, our ongoing cycle of product refreshes, and our high retention rates. In Q4, card fees were up 16%, FX adjusted, moderating a bit as we expected. In 2026, we expect card fees, card fee growth to pick up as the year progresses, as we see the impact from the Platinum refresh, exiting the year in the high teens. We have now started applying the new annual fee for US Platinum Card members reaching their renewal anniversaries. For those customers, we have seen no change to our very high retention rates relative to pre-refresh. Net interest income was up 12% again this quarter, continuing to grow faster than balances. We expect NII growth to continue to outpace growth in loans and receivables in 2026. Turning to expense performance.
Speaker #3: Net card fees reached record levels, driven by continued success in acquiring new customers onto fee-paying products. Our ongoing cycle of product refreshes and our high retention rates in Q4 helped drive card fees up 16%.
Speaker #3: FX-adjusted moderating a bit as we expected in 2026 , we card card fee fees , expect growth to pick up as the year As we progresses .
Speaker #3: impact see the from the platinum refresh exiting year in the the high teens we have now started applying the new for US annual fee Platinum Card members , reaching their renewal anniversaries .
Speaker #3: those For customers , we have seen no change to our very high retention rates relative to Pre-refresh net interest income was up 12% again this quarter , continuing to grow faster than balances .
Speaker #3: We expect NII growth to continue to outpace growth in loans and receivables in 2026 . Turning to expense performance , the VCE to revenue ratio was 45% this quarter .
Christophe Le Caillec: The VCE to revenue ratio was 45% this quarter. The VCE ratio stepped up from earlier in the year, as we expected, driven by the investment we made in the value propositions of our US Platinum cards. As Steve noted, VCE investments are an important part of our model. They support revenue growth by driving customer acquisition and engagement, they improve credit outcomes by attracting highly creditworthy customers, and they drive marketing efficiency by increasing demand for our products. In 2026, we expect the VCE to revenue ratio to be around 44%, driven by these investments and ongoing mix shift towards premium products and assuming a similar spend environment to what we've seen recently.
The VCE to revenue ratio was 45% this quarter. The VCE ratio stepped up from earlier in the year, as we expected, driven by the investment we made in the value propositions of our US Platinum cards. As Steve noted, VCE investments are an important part of our model. They support revenue growth by driving customer acquisition and engagement, they improve credit outcomes by attracting highly creditworthy customers, and they drive marketing efficiency by increasing demand for our products. In 2026, we expect the VCE to revenue ratio to be around 44%, driven by these investments and ongoing mix shift towards premium products and assuming a similar spend environment to what we've seen recently.
Speaker #3: The VCE ratio stepped up from earlier in the year, as we expected, driven by the investment we made in the value propositions of our US Platinum Cards.
Speaker #3: As Steve noted, VC investments are an important part of our model. They support revenue growth by driving customer acquisition and engagement.
Speaker #3: They improved credit outcomes by creditworthy highly and they attracting customers , drive marketing efficiency by increasing demand for our products . In 2026 , we expect the VC to revenue ratio to be around 44% , driven by these investments and ongoing mix shift towards premium products and assuming a similar environment spend to what we've seen recently , we continue to drive leverage from our operating expenses with OpEx as a percentage of revenue down four points since 2022 .
Christophe Le Caillec: We continue to drive leverage from our operating expenses, with OpEx as a percentage of revenue down four points since 2022, even as we increased our technology spend by 11% for the year. In 2026, we expect operating expenses to grow in the mid-single digits. Marketing expense totaled $6.3 billion for the year, up 4% year-over-year. We expect marketing expense to be up in the low single digits in 2026, as we look to generate efficiencies from the investment in product value propositions and technology, as Steve discussed. Before leaving expenses, let me add to Steve's comments about our investment approach and where those investments sit in the P&L. At a high level, when we think about growth, we consider three types of investments. The first is spent on welcome offers and distribution channels that generate demand for our cards.
We continue to drive leverage from our operating expenses, with OpEx as a percentage of revenue down four points since 2022, even as we increased our technology spend by 11% for the year. In 2026, we expect operating expenses to grow in the mid-single digits. Marketing expense totaled $6.3 billion for the year, up 4% year-over-year. We expect marketing expense to be up in the low single digits in 2026, as we look to generate efficiencies from the investment in product value propositions and technology, as Steve discussed. Before leaving expenses, let me add to Steve's comments about our investment approach and where those investments sit in the P&L. At a high level, when we think about growth, we consider three types of investments. The first is spent on welcome offers and distribution channels that generate demand for our cards.
Speaker #3: Even as we increased our technology spend by 11% for the year in 2026 , we expect operating expenses to grow mid the single in digits .
Speaker #3: expense Marketing totaled 6.3 billion for the year , up 4% year over year . We expect marketing expense to be up in the low single digits in 2026 .
Speaker #3: As we look to generate efficiencies from the investment in product value propositions and technology . As we've discussed before , leaving expenses . Let me add to Steve comments about our investment approach and where those investments sit in the PNL at a high level .
Speaker #3: When we talk about growth, we consider three types of investments. The first is spent on welcome offers and distribution channels that generate demand for our cards.
Christophe Le Caillec: These expenses are reported on the marketing line. Second, a significant part of our technology spend drives growth. For example, the new travel app or the enhancements we made to the Amex app for the Platinum refresh. These expenses are reported in operating expenses. And third, are the customer benefits and partnership associated with card membership, which generate demand and customer engagement. The recent step-up in card member services on the Platinum card is a good example of this type of investment. These expenses show up in VCE. Every year, we balance how much of these investments to deploy for growth across these investment categories. For 2026, we plan for investment levels to continue to be high, with a record level of technology development, the step-up in the value proposition of our US Platinum cards, and with a large marketing budget.
These expenses are reported on the marketing line. Second, a significant part of our technology spend drives growth. For example, the new travel app or the enhancements we made to the Amex app for the Platinum refresh. These expenses are reported in operating expenses. And third, are the customer benefits and partnership associated with card membership, which generate demand and customer engagement. The recent step-up in card member services on the Platinum card is a good example of this type of investment. These expenses show up in VCE. Every year, we balance how much of these investments to deploy for growth across these investment categories. For 2026, we plan for investment levels to continue to be high, with a record level of technology development, the step-up in the value proposition of our US Platinum cards, and with a large marketing budget.
Speaker #3: These these expenses are reported on the marketing line significant part . Second , a of our technology spend drives growth . For example , the new travel app or the enhancements we made to the Amex app for the Platinum Refresh .
Speaker #3: These expenses are reported in operating expenses , and third are the customer benefits and partnership associated with card which generate membership , demand and customer The engagement .
Speaker #3: The recent step-up in cardmember services on the Platinum Card is a good example of this type of investment. These expenses show up in VC every year.
Speaker #3: We balance how much of these investments to deploy for growth across these investment categories. For 2026, we plan for investment levels to continue to be at high, record-level development.
Christophe Le Caillec: We plan to invest at these levels while generating strong bottom line growth in line with our aspirations. Moving on to capital. We continue to deliver very strong returns with an ROE of 34% for the full year. We returned $7.6 billion of capital to our shareholders, including $2.3 billion of dividends and $5.3 billion of share repurchases.
We plan to invest at these levels while generating strong bottom line growth in line with our aspirations. Moving on to capital. We continue to deliver very strong returns with an ROE of 34% for the full year. We returned $7.6 billion of capital to our shareholders, including $2.3 billion of dividends and $5.3 billion of share repurchases.
Speaker #3: of technology , with a up in the value proposition of our US platinum cards and with a large marketing budget , and we plan to invest at these levels while generating strong bottom line growth in line with our aspirations .
Speaker #3: Moving on to capital , we continue to deliver very strong returns with an ROE of 34% for the full year . We returned $7.6 billion of capital to our shareholders , including 2.3 billion of dividends and 5.3 billion of share repurchases in 2026 , we expect to increase our quarterly dividend by 16% to $0.95 per share , consistent with our approach our of growing dividend in line with earnings and our 20 to 25 target payout ratio .
Stephen J. Squeri: ... In 2026, we expect to increase our quarterly dividend by 16% to $0.95 per share, consistent with our approach of growing our dividend in line with earnings and our 20 to 25 target payout ratio. With this planned increase, the dividend will be up by more than 80% since 2022, and we have reduced the share count by 7% since then, while maintaining capital well in excess of regulatory minimum levels. This demonstrates our confidence in the sustainability of earnings generated by our model and our disciplined capital management. We also have a robust and diverse funding stack, supported by our continued demand for our high-yield savings accounts, with balances up 8% year over year.
... In 2026, we expect to increase our quarterly dividend by 16% to $0.95 per share, consistent with our approach of growing our dividend in line with earnings and our 20 to 25 target payout ratio. With this planned increase, the dividend will be up by more than 80% since 2022, and we have reduced the share count by 7% since then, while maintaining capital well in excess of regulatory minimum levels. This demonstrates our confidence in the sustainability of earnings generated by our model and our disciplined capital management. We also have a robust and diverse funding stack, supported by our continued demand for our high-yield savings accounts, with balances up 8% year over year.
Speaker #3: With this plan, the increase in the dividend will be up by more than 80% since 2022, and we have reduced the share count by 7% since then while maintaining capital well in excess of regulatory minimum levels.
Speaker #3: This demonstrates our confidence in the sustainability of earnings generated by our model and our disciplined capital management . We also have a robust and diverse funding stack supported by our continued demand for our high yield savings accounts with balances up 8% year over year .
Stephen J. Squeri: The majority of those balances come from our card members, who on average, hold higher deposit balances than non-card members, given strong engagement with our brand and the premium nature of our card member base. With less than 10% of our US consumer card members currently holding a High-Yield Savings Account with us, we see a long runway for growth. This brings me to our 2026 guidance. We continue to run our business with an aspiration to achieve 10%+ revenue growth and mid-teens EPS growth. As shown on slide 21, for the full year 2026, we expect a revenue growth of 9% to 10% and earnings per share between $17.30 and $17.90. 2025 was a very strong year for the company.
The majority of those balances come from our card members, who on average, hold higher deposit balances than non-card members, given strong engagement with our brand and the premium nature of our card member base. With less than 10% of our US consumer card members currently holding a High-Yield Savings Account with us, we see a long runway for growth. This brings me to our 2026 guidance. We continue to run our business with an aspiration to achieve 10%+ revenue growth and mid-teens EPS growth. As shown on slide 21, for the full year 2026, we expect a revenue growth of 9% to 10% and earnings per share between $17.30 and $17.90. 2025 was a very strong year for the company.
Speaker #3: majority The of those balances come from our card members , who on average hold deposit higher balances than non members given strong engagement with our brand and the premium nature of our card member base with less than 10% of our US consumer card members holding a currently account high yield savings with us , we see a long runway for growth .
Speaker #3: This brings me to our 2026 guidance. We continue to run our business with an aspiration to achieve 10% plus revenue growth and mid-teens EPS growth, as shown on slide 21.
Speaker #3: For the full year 2026 , we expect revenue growth of 9 to 10% and earnings per share 1730 between and 1790 . 2025 was a very strong year for the company .
Stephen J. Squeri: We are well-positioned to continue our track record of strong growth into 2026, and we feel good about the year ahead. With that, I'll turn the call back over to Karthik, and we'll take your questions.
We are well-positioned to continue our track record of strong growth into 2026, and we feel good about the year ahead. With that, I'll turn the call back over to Karthik, and we'll take your questions.
Speaker #3: We are well positioned to continue our track record of strong growth in 2026 , and we feel good about the year ahead . With that , I'll turn the call back over to Kartik and we'll take your questions .
Christophe Le Caillec: Thank you, Christophe. Before we open up the lines for Q&A, I will ask those in the queue to please limit yourself to just one question. Thank you for your cooperation. And with that, the operator will now open up the line for questions. Operator?
Kartik Ramachandran: Thank you, Christophe. Before we open up the lines for Q&A, I will ask those in the queue to please limit yourself to just one question. Thank you for your cooperation. And with that, the operator will now open up the line for questions. Operator?
Speaker #1: Thank you Christoph . Before we open up the for lines Q&A , I will ask those in the queue to please limit yourself to just one question .
Operator: Ladies and gentlemen, if you wish to ask a question, please press star, then one on your touch tone phone. You'll hear a tone indicating that you've been placed in queue. You may remove yourself from the queue at any time by pressing star, then two. If you're using a speakerphone, please pick up the handset before pressing the numbers. One moment, please, for the first question. Our first question comes from Ryan Nash of Goldman Sachs. Please go ahead.
Operator: Ladies and gentlemen, if you wish to ask a question, please press star, then one on your touch tone phone. You'll hear a tone indicating that you've been placed in queue. You may remove yourself from the queue at any time by pressing star, then two. If you're using a speakerphone, please pick up the handset before pressing the numbers. One moment, please, for the first question. Our first question comes from Ryan Nash of Goldman Sachs. Please go ahead.
Speaker #1: Thank you for your cooperation. And with that, the operator will now open up the line for questions. Operator.
Speaker #4: Ladies and if you gentlemen , wish to ask a question , please press star . Then one on your touch tone phone . You'll hear a tone indicating that you've been placed in queue .
Speaker #4: You may remove yourself from the queue at any time by pressing star . Then two . If you're using a speakerphone , please pick up the handset before pressing the numbers .
Speaker #4: One moment please . For the first question . Our first question comes from Ryan Nash of Goldman Sachs . Please go ahead .
[Analyst] (Goldman Sachs): Hey, good morning, everyone.
Ryan Nash: Hey, good morning, everyone.
Stephen J. Squeri: Morning.
Steve Squeri: Morning.
Christophe Le Caillec: Good morning.
Christophe Le Caillec: Good morning.
[Analyst] (Goldman Sachs): Maybe to start with the net cards acquired. Steve, can you maybe expand on the comments regarding allocating away from cashback and putting this towards fee-paying products? And do you expect this remix to continue? And maybe just talk about how it will impact the results going forward. Thank you.
Ryan Nash: Maybe to start with the net cards acquired. Steve, can you maybe expand on the comments regarding allocating away from cashback and putting this towards fee-paying products? And do you expect this remix to continue? And maybe just talk about how it will impact the results going forward. Thank you.
Speaker #5: Hey , good everyone morning .
Speaker #6: Good morning . Good morning
Speaker #6: .
Speaker #5: Maybe the net cards acquired. Steve, can you maybe expand on the comments regarding allocating away from cash back and putting this towards fee-paying products?
Speaker #5: start with maybe to
Stephen J. Squeri: Yeah. So I think, you know, as I said in my comments, we have the ability when we see opportunity to be really flexible with our marketing investments, and we saw a tremendous demand for premium products, particularly the Platinum Card. And, you know, as we go forward, we'll continue to adjust as necessary. I don't-- you know, again, I don't think this affects the overall results because we don't really focus so much on acquiring cards as much as we focus on acquiring revenue. And, you know, we're hitting all our revenue targets, and we're hitting our return on investment targets. So I, you know, again, I wouldn't focus too much. I mean, if you look at it sequentially, it's a little bit down.
Steve Squeri: Yeah. So I think, you know, as I said in my comments, we have the ability when we see opportunity to be really flexible with our marketing investments, and we saw a tremendous demand for premium products, particularly the Platinum Card. And, you know, as we go forward, we'll continue to adjust as necessary. I don't-- you know, again, I don't think this affects the overall results because we don't really focus so much on acquiring cards as much as we focus on acquiring revenue. And, you know, we're hitting all our revenue targets, and we're hitting our return on investment targets. So I, you know, again, I wouldn't focus too much. I mean, if you look at it sequentially, it's a little bit down.
Speaker #5: And do you expect this remix to continue, and maybe just talk about how it will impact the results going forward? Thank you.
Speaker #2: Yeah . So I as I said in think , you know , my in my comments , we have the ability when we see opportunity to to be really flexible with our with our marketing investments .
Speaker #2: And we saw a tremendous demand for premium products , particularly the platinum card . And , you know , as we go forward , we'll continue to adjust as , as necessary .
Speaker #2: I don't , you know , again , I don't think this affects the overall results because we don't really focus so much on acquiring cards as much as we focus on acquiring revenue and , you know , we're hitting all our revenue targets and we're hitting our return on investment targets .
Stephen J. Squeri: If you look at it year-over-year, it's 100,000 cards, and, you know, that led to an increase in platinum cards. So we're really happy with those decisions, and we think it was, you know, obviously, the right thing to do.
If you look at it year-over-year, it's 100,000 cards, and, you know, that led to an increase in platinum cards. So we're really happy with those decisions, and we think it was, you know, obviously, the right thing to do.
Speaker #2: So , you know , wouldn't again , I focus too much . I mean , if you look at it sequentially , it's a little bit down .
Speaker #2: If you look at it year over year , it's it's 100,000 . It's 100,000 cards . And you know , that led to an increase in platinum cards .
Christophe Le Caillec: Maybe I'll add two small things. The first one is that there is variations among the quarters. Some of that is just a function of our own marketing plans, whether we're running LT- limited time offers or not. And so that drives volatility from one quarter to another. And as you saw, Q4 last year was also lower. The other thing that I mentioned is that if you focus just on fee-paying cards in the US consumer business, the percentage of NCA paying a fee went up by eight percentage points from Q4 last year to Q4 this year. This is not exactly visible to you in the numbers that we are sharing with you, but this shows, you know, that the efficiency of our marketing dollars is improving, and that's, at the end, what matters.
Christophe Le Caillec: Maybe I'll add two small things. The first one is that there is variations among the quarters. Some of that is just a function of our own marketing plans, whether we're running LT- limited time offers or not. And so that drives volatility from one quarter to another. And as you saw, Q4 last year was also lower. The other thing that I mentioned is that if you focus just on fee-paying cards in the US consumer business, the percentage of NCA paying a fee went up by eight percentage points from Q4 last year to Q4 this year. This is not exactly visible to you in the numbers that we are sharing with you, but this shows, you know, that the efficiency of our marketing dollars is improving, and that's, at the end, what matters.
Speaker #2: So we're really happy with those decisions, and we think it was, you know, obviously the right thing to do.
Speaker #3: Maybe I'll add two small things . The first one is that there is variations among the quarters . Some of that is just the function of our own marketing plans , whether we're running L2 limited time offers or not .
Speaker #3: And so that drives volatility from one quarter to another . And as you saw , Q4 last year was lower . also The other thing that I mentioned is that if you focus just on fee paying cards in the US , consumer business , the percentage of us NCAA paying a fee went up by eight percentage points from Q4 last year to Q4 this year .
Speaker #3: This is exactly not visible to you in the numbers that we are sharing with you, but this shows you that the efficiency of our dollars in marketing is improving, and that's at the end.
Operator: Thank you. The next question is coming from Sanjay Sakhrani of KBW. Please go ahead.
Operator: Thank you. The next question is coming from Sanjay Sakhrani of KBW. Please go ahead.
Speaker #3: What matters .
[Analyst] (KBW): Thank you. Good morning. I had a question on commercial services. Obviously, SME spend still remains pretty weak, saw a slight deceleration. I'm just curious, as we think about next or this year, like, what gets things going a little bit more, some of the investments you've made? Obviously, some of your competitors have made some M&A moves and are getting deeper into this space. How do you think that changes sort of the competitive backdrop in which you operate, and, and, and how would you compare your products? Thanks.
Sanjay Sakhrani: Thank you. Good morning. I had a question on commercial services. Obviously, SME spend still remains pretty weak, saw a slight deceleration. I'm just curious, as we think about next or this year, like, what gets things going a little bit more, some of the investments you've made? Obviously, some of your competitors have made some M&A moves and are getting deeper into this space. How do you think that changes sort of the competitive backdrop in which you operate, and, and, and how would you compare your products? Thanks.
Speaker #4: Thank you . The next question is coming from Sanjay Sakhrani of KBW . Please go ahead .
Speaker #7: Thank you . Good morning . Had a question on commercial services . Obviously SM spend still remains weak pretty . Saw a slight deceleration .
Speaker #7: I'm just curious, as we think about next year or this year, like what gets things going a little bit more. Some of the investments you've made—obviously some of your competitors have made some M&A moves and are getting deeper into this space.
Stephen J. Squeri: Yeah, look, I think, you know, when, when you, when you tease out SMB, you've got to look at middle market, and you've got to look at, at small business. I think small business is really, really strong. I think middle market is where you see a little bit of the slowdown. I think as far as, the competitive, the competitive space, and look, you just saw Capital One just acquired Brex. You've got Ramp out there. We acquired Center last year, which we'll be launching, you know, probably by, by mid-year. And, you know, it's, it's a, it's a highly competitive space. Having said that, we're still three times larger than, than anybody else. Our Platinum, Platinum refresh has gone very, very well...
Steve Squeri: Yeah, look, I think, you know, when, when you, when you tease out SMB, you've got to look at middle market, and you've got to look at, at small business. I think small business is really, really strong. I think middle market is where you see a little bit of the slowdown. I think as far as, the competitive, the competitive space, and look, you just saw Capital One just acquired Brex. You've got Ramp out there. We acquired Center last year, which we'll be launching, you know, probably by, by mid-year. And, you know, it's, it's a, it's a highly competitive space. Having said that, we're still three times larger than, than anybody else. Our Platinum, Platinum refresh has gone very, very well...
Speaker #7: How do you think that changes sort of the competitive backdrop in which you operate, and how would you compare your products? Thanks.
Speaker #2: Yeah . Look , I think , you know , when when you when you tease out SMB , you've got to look at middle market , you've got to look at at small really , small business .
Speaker #2: business is I think really strong . I think middle market is where you see a little bit of the slowdown . I think as far as the competitive , the competitive space and look , you just saw Capital One just acquired Brex .
Speaker #2: You've got ramp out there . We acquired center last year , which will be launching , you know , probably by by mid-year .
Speaker #2: And you know it's it's a it's a highly competitive space . Having said that , we're still three times larger than than anybody else .
Stephen J. Squeri: We're looking for a pickup as the year goes on, and we'll be communicating more in terms of just what's gonna go on in our overall commercial strategy as the year goes on from a product refresh perspective. So yes, it's a highly competitive, highly competitive market. I think the other thing to look at is it's not just us that is sort of, you know, slow on the overall growth as it relates to SMB, and I think most of it is middle market from an industry perspective. So again, competitive. I like the hand we have. I like the plans that we have going forward, and we'll be communicating more as the year goes on, on that.
We're looking for a pickup as the year goes on, and we'll be communicating more in terms of just what's gonna go on in our overall commercial strategy as the year goes on from a product refresh perspective. So yes, it's a highly competitive, highly competitive market. I think the other thing to look at is it's not just us that is sort of, you know, slow on the overall growth as it relates to SMB, and I think most of it is middle market from an industry perspective. So again, competitive. I like the hand we have. I like the plans that we have going forward, and we'll be communicating more as the year goes on, on that.
Speaker #2: Our Platinum Platinum refresh has gone very, very well. And we're pickup looking for a as the year, as the year goes on.
Speaker #2: And we'll be communicating more in terms of just what's going to go on in our overall commercial strategy as , as the as the year goes on from a product refresh perspective .
Speaker #2: So yes , it's it's a highly competitive , highly competitive market . I think the other thing to look at is it's not just us that is sort of , you know , slow on the overall growth as it relates to SMB .
Speaker #2: And I think most of it is , is middle market from an industry perspective . So again , competitive , I like the hand what we have .
Speaker #2: I like the , the the the plans that we have going forward . And we'll be communicating more as the year goes on .
Operator: Thank you. The next question is coming from Don Fandetti of Wells Fargo. Please go ahead.
Operator: Thank you. The next question is coming from Don Fandetti of Wells Fargo. Please go ahead.
Speaker #2: On that .
[Analyst] (Wells Fargo): Hi, good morning. Steve, you know, can you talk a little bit about 2026 in terms of the US consumer billed business and the health of the premium consumer? I know there's this sort of scenario where we could run a little hot. There's a lot of stimulus, and just want to get your, your kind of sense. I mean, you're running at 9% now. Is it like steady state from here, or could we accelerate?
Don Fandetti: Hi, good morning. Steve, you know, can you talk a little bit about 2026 in terms of the US consumer billed business and the health of the premium consumer? I know there's this sort of scenario where we could run a little hot. There's a lot of stimulus, and just want to get your, your kind of sense. I mean, you're running at 9% now. Is it like steady state from here, or could we accelerate?
Speaker #4: Thank you . The next question coming is from Don Fandetti of Wells Fargo . Please go ahead .
Speaker #8: Hi . Good morning . I'm Steve . Can you talk a little bit about 2026 in terms of us consumer build business and the health of the premium consumer , I know there's a sort of scenario where we could run a little hot .
Speaker #8: There's a lot of stimulus and just want to get your your kind of sense . I mean you're running at 9% now . Is it like steady state from here or could we accelerate ?
Stephen J. Squeri: Look, you know, we saw a big uplift in Platinum over the holidays. I think the momentum that the new Platinum launch has given us, the momentum that Gold has given us, we're really bullish from a consumer perspective. Will it go ahead of nine? I don't know. But I like what our card members are doing with the product. They're really engaging. I think one of the big things that is sort of lost on a lot of people was the Platinum app that we launched and the ability for our card members to really engage with the product and to go out there and spend. I mean, if you look at restaurant spending, for example, for the quarter, it's up 9%.
Steve Squeri: Look, you know, we saw a big uplift in Platinum over the holidays. I think the momentum that the new Platinum launch has given us, the momentum that Gold has given us, we're really bullish from a consumer perspective. Will it go ahead of nine? I don't know. But I like what our card members are doing with the product. They're really engaging. I think one of the big things that is sort of lost on a lot of people was the Platinum app that we launched and the ability for our card members to really engage with the product and to go out there and spend. I mean, if you look at restaurant spending, for example, for the quarter, it's up 9%.
Speaker #2: Look , you know , we saw we saw a big a big uplift in in platinum . Our over the holidays . And I think the momentum that the new platinum launch has has given us the momentum that gold has given us , we're really bullish from a consumer perspective .
Speaker #2: Will it go ahead of of nine ? I don't know , but I like I like what our card members are doing with the product .
Speaker #2: They're really engaging . I think . I think one of the big things that is sort of lost on a lot of people was the the platinum app that that we launched and the ability for our card members to really engage with the product and to go out there and spend .
Stephen J. Squeri: If you look at Resy restaurant spending, it's up 20%. And that's, that's really due to the engagement of our Platinum Card holders, and it's due to the engagement of our Gold Card holders with our Resy restaurants. So that, that synergy has really worked out very, very well for us. So again, I'm not projecting more than 9%, but, we are-- we do have very, very strong momentum. And that momentum, and, you know, as Christophe just talked about, as well, that momentum from a Platinum acquisition perspective, we expect to continue.
If you look at Resy restaurant spending, it's up 20%. And that's, that's really due to the engagement of our Platinum Card holders, and it's due to the engagement of our Gold Card holders with our Resy restaurants. So that, that synergy has really worked out very, very well for us. So again, I'm not projecting more than 9%, but, we are-- we do have very, very strong momentum. And that momentum, and, you know, as Christophe just talked about, as well, that momentum from a Platinum acquisition perspective, we expect to continue.
Speaker #2: I mean , if you look at if you look at restaurant spending for example , for the quarter , it's up 9% . If you look at resi restaurant spending , it's up 20% .
Speaker #2: And that's really due to the engagement of our Platinum Card Members. And it's due to the engagement of our Gold Card Members with our Resy restaurants.
Speaker #2: So that that synergy has really worked very , very out well for us . So as , I'm again not more than 9% , but we are we do have very , very strong momentum .
Speaker #2: And that momentum . And , you know , as Christoph just talked about as well , that momentum from a platinum acquisition perspective , we expect to continue .
Operator: Thank you. The next question is coming from Erika Najarian of UBS. Please go ahead.
Operator: Thank you. The next question is coming from Erika Najarian of UBS. Please go ahead.
[Analyst] (UBS): Yes, good morning, and thank you. I just wanted to revisit, you know, the net cards acquired number, because this is a big talking point with investors, before the call began. So, you know, completely understand the message, and of course, you know, the focus should be on revenue generation and not that number. But as we think about this remix strategy, as you refocus more of your dollars towards the fee-paying cards, does that, over time, then impact the trajectory of net card fees, for example, on slide 15, or get you closer to that plus part of your long-term aspiration in terms of revenue growth?
Erika Najarian: Yes, good morning, and thank you. I just wanted to revisit, you know, the net cards acquired number, because this is a big talking point with investors, before the call began. So, you know, completely understand the message, and of course, you know, the focus should be on revenue generation and not that number. But as we think about this remix strategy, as you refocus more of your dollars towards the fee-paying cards, does that, over time, then impact the trajectory of net card fees, for example, on slide 15, or get you closer to that plus part of your long-term aspiration in terms of revenue growth?
Speaker #4: Thank you. The next question is coming from Erika Najarian of UBS. Please go ahead.
Speaker #9: Yes . Good morning and thank you . I just wanted to revisit , you know , the Net cards acquired because this is a big talking point with investors before the call began .
Speaker #9: So you know , completely understand the message . And of course , you know , the focus should be on revenue generation and not that number .
Speaker #9: But as we think about this remix strategy , as you refocus more of your dollars towards the fee paying cards , does that over time , then impact the of on trajectory card net ?
Speaker #9: Example, fees for slide 15 or to get you closer to that. Plus, part of your long-term aspiration in terms of revenue growth.
Christophe Le Caillec: Hey, good morning, Erika. So yes, you're right. The overall portfolio is slowly getting more premium. We see the Platinum portfolio is growing at a very fast pace. The spend, because of the strong engagement, is also growing at a faster pace than the rest. And we have celebrated on this call for many quarters, the growth and the sustained growth on card fees, which just reached $10 billion, right? And there is in the slides that we talked about this morning, you can see the trajectory over time. A lot of that is coming from the premium cards, especially Platinum.
Christophe Le Caillec: Hey, good morning, Erika. So yes, you're right. The overall portfolio is slowly getting more premium. We see the Platinum portfolio is growing at a very fast pace. The spend, because of the strong engagement, is also growing at a faster pace than the rest. And we have celebrated on this call for many quarters, the growth and the sustained growth on card fees, which just reached $10 billion, right? And there is in the slides that we talked about this morning, you can see the trajectory over time. A lot of that is coming from the premium cards, especially Platinum.
Speaker #3: Hey . Good morning Erika . So yes , you're you're right . The overall portfolio is slowly getting more premium . We you know , the platinum portfolio is growing at a very fast pace .
Speaker #3: The spend because of the strong engagement is also growing at a faster pace than the rest. And we have celebrated on this call for many quarters.
Speaker #3: The growth . And there sustained growth on card fees , which just reached $10 billion . Right . And there is in the slides that we talked about this morning , you can the the trajectory over , over time .
Christophe Le Caillec: And as you think about that card fee line in the P&L for 2026, which is right now growing at 16%, which in itself is like an amazingly strong number for base like that is reaching $10 billion annually. We expect that growth rate to pick up in the balance of the year as the year progresses, and as more and more of our card members on the Platinum Card are facing their renewal anniversary, and we are moving them to the new price point. So that's very much the dynamic indeed that is happening. The other proof points that are either visible, that the portfolio is getting more premium, is their incredible performance on the credit side, right?
And as you think about that card fee line in the P&L for 2026, which is right now growing at 16%, which in itself is like an amazingly strong number for base like that is reaching $10 billion annually. We expect that growth rate to pick up in the balance of the year as the year progresses, and as more and more of our card members on the Platinum Card are facing their renewal anniversary, and we are moving them to the new price point. So that's very much the dynamic indeed that is happening. The other proof points that are either visible, that the portfolio is getting more premium, is their incredible performance on the credit side, right?
Speaker #3: A lot of that is from the premium cards , especially platinum . as you And think about that card fee line in the PNL for 2026 , which is right now growing 16% , at which in like an itself is amazingly strong number for base like that is reaching $10 billion annually .
Speaker #3: We expect that growth rate to pick up in balance of the year as the year progresses, and as more and more of our card members on the Platinum Card are there facing renewal anniversary.
Speaker #3: And we are moving them to the new price point . So that's very much the indeed that is that is happening . The other proof points that are that are either visible that the portfolio is , is getting more premium .
Christophe Le Caillec: You see those delinquency rates, those write-off rates, that are not only best in class, but they are flat. And I compare and contrast that with many of our competitors that have guided for a small increase there, and while we're talking about stability when it comes to those metrics. So, the portfolio is indeed moving towards a more premium portfolio, and either a lot of the P&L lines are reflecting that.
You see those delinquency rates, those write-off rates, that are not only best in class, but they are flat. And I compare and contrast that with many of our competitors that have guided for a small increase there, and while we're talking about stability when it comes to those metrics. So, the portfolio is indeed moving towards a more premium portfolio, and either a lot of the P&L lines are reflecting that.
Speaker #3: Is there incredible performance on their credit side ? Right . You see those delinquency rates , those write that are off rates not only best in class , but they are flat .
Speaker #3: And I compare and contrast that with many of our competitors that have guided for a small increase, while talking about more stability when it comes to those metrics.
Speaker #3: So, the portfolio is indeed moving towards more of a premium portfolio, and a lot of premium lines are—PNL is reflecting that.
Operator: Thank you. The next question is coming from Rick Shane of JP Morgan. Please go ahead.
Operator: Thank you. The next question is coming from Rick Shane of JP Morgan. Please go ahead.
Stephen J. Squeri: Thanks for taking my questions. It's sort of a follow-on to what Erika just asked. You know, when we look at 2025, marking the strong, the low expense on credit on a relative side allowed you to aggressively ramp marketing and rewards. When we think about the 2026 guidance, it feels like it is more in balance in terms of more normalized growth of credit expense.
Rick Shane: Thanks for taking my questions. It's sort of a follow-on to what Erika just asked. You know, when we look at 2025, marking the strong, the low expense on credit on a relative side allowed you to aggressively ramp marketing and rewards. When we think about the 2026 guidance, it feels like it is more in balance in terms of more normalized growth of credit expense.
Speaker #4: Thank you . The next question is coming from Rick Shane of JP Morgan . Please go ahead .
Speaker #10: Thanks for taking my questions . It's sort of a what Erika , follow on to just asked . You know , when we look at 2025 marking the strong , the low on expense credit on a relative side allowed you to aggressively ramp marketing and rewards when you we think about the 26 guidance , it feels like it is more in balance in terms of more normalized growth of credit expense .
[Analyst] (FT Partners): ... if credit expense continues to be low, as Christophe, you just alluded to, is there incremental opportunity for investment, or is that something we would see fall to the bottom line? American Express has historically reinvested those excess returns.
... if credit expense continues to be low, as Christophe, you just alluded to, is there incremental opportunity for investment, or is that something we would see fall to the bottom line? American Express has historically reinvested those excess returns.
Speaker #10: If credit expense continues to be low , as Christoph , you just alluded to , is there incremental opportunity for investment or is that something we would see fall to the bottom line ?
Christophe Le Caillec: Yeah. So to your point, Rick, credit is very low, and there is a hard limit to how low these numbers can be, right? And 2% is pretty much at that limit. You know, the other co-component of the model, which we also try to illustrate this quarter, is the efficiencies that we're getting on operating expenses, right? So as we are expanding the- increasing the value proposition on our premium products, as premium products are getting a bigger share of our portfolio, it's putting a downward pressure on credit, and we are generating efficiencies on marketing acquisition as well as on operating expenses. And that's very much how the model is working. And, you know, we try to illustrate that also by saying that this is not by constraining technology growth. We're actually growing technology.
Christophe Le Caillec: Yeah. So to your point, Rick, credit is very low, and there is a hard limit to how low these numbers can be, right? And 2% is pretty much at that limit. You know, the other co-component of the model, which we also try to illustrate this quarter, is the efficiencies that we're getting on operating expenses, right? So as we are expanding the- increasing the value proposition on our premium products, as premium products are getting a bigger share of our portfolio, it's putting a downward pressure on credit, and we are generating efficiencies on marketing acquisition as well as on operating expenses. And that's very much how the model is working. And, you know, we try to illustrate that also by saying that this is not by constraining technology growth. We're actually growing technology.
Speaker #10: American Express is historically reinvested . Those those excess returns .
Speaker #6: Yeah .
Speaker #3: So to your point , rich credit is very low . And there is a hard limit to this how low numbers can be .
Speaker #3: Right . And 2% is is pretty much at that limit . You other core component of the model , which we also try to illustrate this quarter , is the efficiencies that we are getting on operating expenses .
Speaker #3: Right . So as we are expanding the increasing the value our proposition on premium products , as premium products are getting a bigger share of our portfolio , it's putting a downward pressure on credit , and we are generating efficiencies on marketing , acquisition as well as on operating expenses .
Speaker #3: And very much how the model is working. You know, we try to illustrate that also by saying that this is not by constraining growth.
Christophe Le Caillec: I think the CAGR is 11%. It's all the other operating expenses that are, you know, generating efficiencies. So, you know, as you think about modeling American Express and thinking about how the business is working, that's very much how you should think about it. Now, when it comes to potential upsides and what we would do with it, you know, we're guiding towards mid-teen CPS growth. We're providing a range. This includes, you know, a lot of scenarios, including where we overperform on some lines and underperform on some others. The idea here is just like we are, we are committed to that, to that EPS, but there will be certainly movements between the lines as the year progresses.
I think the CAGR is 11%. It's all the other operating expenses that are, you know, generating efficiencies. So, you know, as you think about modeling American Express and thinking about how the business is working, that's very much how you should think about it. Now, when it comes to potential upsides and what we would do with it, you know, we're guiding towards mid-teen CPS growth. We're providing a range. This includes, you know, a lot of scenarios, including where we overperform on some lines and underperform on some others. The idea here is just like we are, we are committed to that, to that EPS, but there will be certainly movements between the lines as the year progresses.
Speaker #3: Technology—we are actually growing technology. I think the other is 11%. All the operating expenses that are generating that, you're seeing efficiencies.
Speaker #3: So , you know , as you think about modeling American Express and thinking about how the business is working , that's very much how you should think Now , when it comes to potential upside and what we would do with it , you know , we're guiding towards mid-teens EPs growth .
Speaker #3: We're providing a range . This includes , you know , a lot of scenarios , including where we overperform on some lines and underperform on some others .
Speaker #3: The idea here is, just like we are, we are committed to that, to that EPS. But there will be movements certainly between the lines as the year progresses.
Operator: Thank you. The next question is coming from Mark DeVries of Deutsche Bank. Please go ahead.
Operator: Thank you. The next question is coming from Mark DeVries of Deutsche Bank. Please go ahead.
Speaker #4: Thank you. The next question is coming from Mark DeVries of Deutsche Bank. Please go ahead.
[Analyst] (Deutsche Bank): Yeah, thank you. I had a question about kind of the impact you see on engagement and the level of spend from existing customers when you do a meaningful product refresh like you did with Platinum. Do you see existing customers actually change the way they use their card when you layer on new value? And if so, is there also a delay in that? Is it they take time to kind of gain awareness of what's kind of new and incremental, you know, kind of in contrast to new customers acquired who presumably are being acquired because they are aware of that and very immediately engage around the new value you've layered on?
Mark DeVries: Yeah, thank you. I had a question about kind of the impact you see on engagement and the level of spend from existing customers when you do a meaningful product refresh like you did with Platinum. Do you see existing customers actually change the way they use their card when you layer on new value? And if so, is there also a delay in that? Is it they take time to kind of gain awareness of what's kind of new and incremental, you know, kind of in contrast to new customers acquired who presumably are being acquired because they are aware of that and very immediately engage around the new value you've layered on?
Speaker #8: Yeah . Thank you . I had a question about kind of the impact . You see on on engagement and the level of spend from refresh customers when like you did meaningful existing with platinum , do you see existing customers actually change the way they use their card ?
Speaker #8: When you layer on new value ? And if so , is is there also a delay in that as is , they take time to kind of gain awareness of what's kind of new and incremental and , you know , kind of in contrast to new new customers require who presumably are being acquired because they are aware of that .
Stephen J. Squeri: Yeah, I think, I think with existing customers, they don't uptake it as much as new customers do. But what I will tell you is that it goes very quickly. The engagement with Lululemon, the engagement with Resy, the engagement with the hotel credit was pretty quick with our existing customers. With the new customers, it's what draws them immediately. And I think what's really important there is that draw is why, as you move forward, when you have a new value proposition, you don't need to heavy up as much as marketing. I mean, and Christophe's point about movement between lines. So there's movement between VCE, marketing, there's better credit performance, there's operating expenses. You got to look at the entire thing.
Steve Squeri: Yeah, I think, I think with existing customers, they don't uptake it as much as new customers do. But what I will tell you is that it goes very quickly. The engagement with Lululemon, the engagement with Resy, the engagement with the hotel credit was pretty quick with our existing customers. With the new customers, it's what draws them immediately. And I think what's really important there is that draw is why, as you move forward, when you have a new value proposition, you don't need to heavy up as much as marketing. I mean, and Christophe's point about movement between lines. So there's movement between VCE, marketing, there's better credit performance, there's operating expenses. You got to look at the entire thing.
Speaker #8: very immediately engage around the new value . You've layered on .
Speaker #2: Yeah , I think I think with existing customers , they don't uptake it as much as quickly as as new customers do . But what I will tell you is that it goes very quickly .
Speaker #2: The engagement with Lululemon , the engagement with resi , the engagement with the hotel credit was was pretty quick with our existing , with our existing customers , with the new customers .
Speaker #2: What it's what draws them immediately . And I think what's really important there is that that is , is why as you move forward , when you have a new value proposition , you don't need to heavy up as much as marketing .
Speaker #2: I mean , the and kristof's point about movement between lines . So movement between VCE marketing , there's there's better credit performance , there's operating expenses .
Stephen J. Squeri: But the bottom line is, new customers, you know, look at the product, they're very rational about it, and they engage in everything they want to engage in. The existing customers have a little bit of inertia, but then all of a sudden, they start to engage in it. One of the things that really made a huge difference for us was the Platinum travel app, the Platinum app. It made it so easy to enroll in all the benefits. And, you know, I don't think Christophe mentioned this, but we certainly have it in. We had an uptick of 30% in our travel bookings in Q4. That is a direct result of that Platinum launch, and the engagement of our cardholders.
But the bottom line is, new customers, you know, look at the product, they're very rational about it, and they engage in everything they want to engage in. The existing customers have a little bit of inertia, but then all of a sudden, they start to engage in it. One of the things that really made a huge difference for us was the Platinum travel app, the Platinum app. It made it so easy to enroll in all the benefits. And, you know, I don't think Christophe mentioned this, but we certainly have it in. We had an uptick of 30% in our travel bookings in Q4. That is a direct result of that Platinum launch, and the engagement of our cardholders.
Speaker #2: You got to look at the entire thing . But the bottom line is new customers . You know , look at the product .
Speaker #2: They're very rational about it. They engage in everything they want to engage in. The existing customers have a little bit of inertia, but then all of a sudden, they start to engage in it.
Speaker #2: One of the things that that really made a huge difference for us was the Platinum Travel app . The platinum app . It made it so easy to enroll in all the benefits .
Speaker #2: And you know , we didn't . I don't think Kristof mentioned this , but we certainly have it in . We had an uptick of 30% in our travel bookings in the fourth quarter .
Stephen J. Squeri: So you get a lot more engagement, across the board, and you just see what's going on with Resy. Our restaurant spending is up 20%. So all of the, all of the metrics that we look at, speaks to the fact that this was a wildly successful product launch. It attracted new cardholders, and it engaged existing cardholders to spend even more.
So you get a lot more engagement, across the board, and you just see what's going on with Resy. Our restaurant spending is up 20%. So all of the, all of the metrics that we look at, speaks to the fact that this was a wildly successful product launch. It attracted new cardholders, and it engaged existing cardholders to spend even more.
Speaker #2: direct platinum That is a result of that and the engagement of our cardholders . So you get a lot more engagement across the board , and you just see what's going on with resi , our restaurant spending is up 20% .
Speaker #2: So all of the metrics that we look at speak to the fact that this was a wildly successful product launch.
Operator: Thank you. The next question is coming from Craig Maurer of FT Partners. Please go ahead.
Operator: Thank you. The next question is coming from Craig Maurer of FT Partners. Please go ahead.
Speaker #2: It attracted new cardholders, and it engaged existing cardholders to spend even more.
[Analyst] (FT Partners): Yeah, thanks. Good morning. I actually wanted to ask the flip side to the last question, which is, you know, when we think about card member services, growth as we move through the year, you know, I'm trying to think of how much the growth rate itself could moderate while expecting it to remain high until you lap the relaunch of Platinum. But, you know, how much do you think the fourth quarter growth rate was related to, you know, this being the new product and, you know, now that we're moving through into the early part of the year, some of that new car smell kind of wears off, and so engagement might wane a little bit versus where we were. So I'm just trying to think about the cadence of that spend through the year.
Craig Maurer: Yeah, thanks. Good morning. I actually wanted to ask the flip side to the last question, which is, you know, when we think about card member services, growth as we move through the year, you know, I'm trying to think of how much the growth rate itself could moderate while expecting it to remain high until you lap the relaunch of Platinum. But, you know, how much do you think the fourth quarter growth rate was related to, you know, this being the new product and, you know, now that we're moving through into the early part of the year, some of that new car smell kind of wears off, and so engagement might wane a little bit versus where we were. So I'm just trying to think about the cadence of that spend through the year.
Speaker #4: Thank you . The next question is coming from Craig Maurer of Ft . Partners . Please go ahead .
Speaker #11: Yeah . Thanks . Good morning . I actually wanted to ask the flip side to the last question , which is , you know , when we think about card member services growth as we the move through year .
Speaker #11: You know, how much of—I’m trying to think of how much the growth rate itself could moderate, while expecting it to remain high until you lap the relaunch of Platinum.
Speaker #11: But you know , how much do you think the fourth quarter growth rate was related to , you know , this being the new .
Speaker #11: And , you know , now that we're moving through into the early part of the year , some of that new car smell kind of wears off .
Speaker #11: And so engagement might wane a little bit versus where we were. So I'm just trying to think about the cadence of that spend through the year.
Stephen J. Squeri: Yeah, I'll make a couple of comments, and I'll let Christophe go a little bit further. But I think that, you know, during that, you know, look, we launched on 18 September or so, and I think we got to certain engagement levels. I think those are probably the engagement levels we're gonna get to. I think what you'll see is, as new people come on, they will engage. But I think the existing card base has planted their flag, if you will. This is what they're, this is what they're gonna use out of the new product. And the new card base, they've done what they're gonna do. So as we plan for this, and we're fine with where the VCE levels are. I mean, it's expected.
Steve Squeri: Yeah, I'll make a couple of comments, and I'll let Christophe go a little bit further. But I think that, you know, during that, you know, look, we launched on 18 September or so, and I think we got to certain engagement levels. I think those are probably the engagement levels we're gonna get to. I think what you'll see is, as new people come on, they will engage. But I think the existing card base has planted their flag, if you will. This is what they're, this is what they're gonna use out of the new product. And the new card base, they've done what they're gonna do. So as we plan for this, and we're fine with where the VCE levels are. I mean, it's expected.
Speaker #2: Yeah I'll let me make a couple comments and I'll let Christoph go a little bit further . But I think that , you know , during that , you know , look , we launched on September 18th or so and I think we got to certain engagement levels .
Speaker #2: I think those are probably the engagement levels we're going to get to. I think what you'll see is, as new people come on, they will engage.
Speaker #2: But I think the existing card base has planted their flag , if you will . This is what they're this is what they're going out of the to use new product .
Speaker #2: And the new base . card They've done what they're going So to plan for do . we as this and we're we're fine with where these with where the VC levels are .
Stephen J. Squeri: But as we plan for this, I think, I think, Craig, you're right. I think you get to a point where it sort of stabilizes, right? Not every card member uses every single benefit. It's just-- and that's not how we really designed the product, right? We designed the product so that it appealed to a wide variety of people. There are core benefits that, you know, a lot of people eat, right? So they'll use the Resy credit, and people take Ubers and things like that. But then there are other, other credits on the side that they may not use. They may not use a Walmart+, they may not use a Lululemon, and so forth. And so you get to that sort of balance, if you will, where it's a lot easier to project what's gonna, what's gonna happen.
But as we plan for this, I think, I think, Craig, you're right. I think you get to a point where it sort of stabilizes, right? Not every card member uses every single benefit. It's just-- and that's not how we really designed the product, right? We designed the product so that it appealed to a wide variety of people. There are core benefits that, you know, a lot of people eat, right? So they'll use the Resy credit, and people take Ubers and things like that. But then there are other, other credits on the side that they may not use. They may not use a Walmart+, they may not use a Lululemon, and so forth. And so you get to that sort of balance, if you will, where it's a lot easier to project what's gonna, what's gonna happen.
Speaker #2: I mean , it's expected . But as we plan for this , I think I think , Craig , you're right . I think you get to a where it's sort of stabilizes , right ?
Speaker #2: Not card every member uses every single benefit . It's just . And that's not how we really designed the product , right ? We designed the product so that it appealed to a wide variety of people .
Speaker #2: There are core benefits that , you know , a lot of people eat , right ? So they'll use the credit and people take Ubers and things like that .
Speaker #2: But then there are other credits on the side that they may not use. They may not use a Walmart, plus not use a— they may Lululemon and so forth.
Stephen J. Squeri: You know, some things you get more uptake than you thought you were gonna get, and other things you get less uptake than you thought you were gonna get. But in balance, we're very happy with the overall engagement, which then leads to a wide variety of spend and more spend on the product.
You know, some things you get more uptake than you thought you were gonna get, and other things you get less uptake than you thought you were gonna get. But in balance, we're very happy with the overall engagement, which then leads to a wide variety of spend and more spend on the product.
Speaker #2: And so to you get that sort of balance , if you will , where it's a lot easier to project what's going to what's going to happen .
Speaker #2: You know, some things you get more uptake than you thought you were going to get, and other things you get less uptake than you thought you were going to get.
Speaker #2: But in balance , we're very happy with the overall which then engagement , leads to a wide variety of and more spend on the product .
Christophe Le Caillec: I don't have a lot to add. I would just say that in the guidance that we gave you, we are assuming that the VCE to revenue ratio will be around 44%, and we'll see whether we land there or not. The current level of spend, of course, because another big driver of that VCE is the rewards cost. But, you know, we are assuming around 44% for the balance of the year, and we'll be watching it.
Christophe Le Caillec: I don't have a lot to add. I would just say that in the guidance that we gave you, we are assuming that the VCE to revenue ratio will be around 44%, and we'll see whether we land there or not. The current level of spend, of course, because another big driver of that VCE is the rewards cost. But, you know, we are assuming around 44% for the balance of the year, and we'll be watching it.
Speaker #3: I don't have a lot to add . I would just say that in the guidance that we gave you , we were assuming that the VC to revenue ratio will be around 44% , and we'll see whether we land there or not .
Speaker #3: The current level of spend , of course , because another big driver of that VC is the rewards cost . But , you know , we are we are assuming 40 , around 44% for the balance of the year .
Operator: Thank you. The next question is coming from Jeff Adelson of Morgan Stanley. Please go ahead.
Operator: Thank you. The next question is coming from Jeff Adelson of Morgan Stanley. Please go ahead.
Speaker #3: And we'll be watching it .
[Analyst] (Morgan Stanley): Hey, good morning, Steve and Christophe. Wanted to just ask about, you know, the 10% credit card cap proposal out there. You know, obviously, everybody's been quite vocal about this, the unintended consequences, et cetera. Just wondering what your view is of that, you know, what, what might happen to Amex and the industry if this goes through? Obviously, seems like Amex is more of a defensive mode against this with a premium card focus, but, maybe just discuss that as well as maybe any conversations you've had with the administration.
Jeff Adelson: Hey, good morning, Steve and Christophe. Wanted to just ask about, you know, the 10% credit card cap proposal out there. You know, obviously, everybody's been quite vocal about this, the unintended consequences, et cetera. Just wondering what your view is of that, you know, what, what might happen to Amex and the industry if this goes through? Obviously, seems like Amex is more of a defensive mode against this with a premium card focus, but, maybe just discuss that as well as maybe any conversations you've had with the administration.
Speaker #4: Thank you . The next question is coming from Jeff Adelson of Morgan Stanley . Please go ahead .
Speaker #8: Good morning. Hey, good Steve, and Christoph. I wanted to just ask about the 10% credit card cap proposal out there. You know, obviously everybody's been quite vocal about this.
Speaker #8: The unintended consequences , etc. . Just wondering what your view is of that . You know what what might happen to Amex and the industry if this goes through .
Speaker #8: Obviously it seems like Amex is more of a defensive mode against this with the premium card focus . But maybe just discuss that as well as maybe any conversations you've had with the administration .
Stephen J. Squeri: Look, I think everybody's pretty much said everything that there is to say on this. I think, look, affordability is really important. I don't think a 10% credit card cap is the answer to that. I think it would reduce the number of cards ultimately in the marketplace. I think it would reduce line sizes. America pretty much runs on credit. I think that would impact small businesses and so forth, and it just has this sort of effect of a downward spiral from my perspective. So I don't think that's the answer.
Steve Squeri: Look, I think everybody's pretty much said everything that there is to say on this. I think, look, affordability is really important. I don't think a 10% credit card cap is the answer to that. I think it would reduce the number of cards ultimately in the marketplace. I think it would reduce line sizes. America pretty much runs on credit. I think that would impact small businesses and so forth, and it just has this sort of effect of a downward spiral from my perspective. So I don't think that's the answer.
Speaker #2: Look , I think everybody's pretty much set everything that there is to say on this . I think , look , affordability is really important .
Speaker #2: I don't think a 10% credit card cap is the answer to that. I think it would reduce the number of cards ultimately in the marketplace.
Speaker #2: I think it would reduce line sizes . America pretty much runs on credit . I think that would impact small businesses . And so forth .
Speaker #2: And it just has it just this sort of has effect of of a downward spiral from , from my from my perspective . So I don't think , I don't think that's I don't think that's the answer .
Stephen J. Squeri: And, you know, I mean, obviously, we have conversations, and I'm not gonna get into those, but we just don't think it's a good idea.
And, you know, I mean, obviously, we have conversations, and I'm not gonna get into those, but we just don't think it's a good idea.
Speaker #2: And I'm , you know , I mean , obviously we have I'm not going conversations . to get to get in going into those .
Operator: Thank you. The next question is coming from John Pancari of Evercore ISI. Please go ahead.
Operator: Thank you. The next question is coming from John Pancari of Evercore ISI. Please go ahead.
Speaker #2: But we just don't—we don't think it's a good, it's a good idea.
[Analyst] (Evercore ISI): Good morning. Steve, you mentioned on the competitive backdrop. I know you mentioned the commercial dynamics already. Can you discuss a little bit more on the consumer side? I know, you know, competing card players are leaning in still to their travel rewards programs and all that. And then what poses the greatest risk to your 2026 outlook? Is it that competitive dynamic, or would you say it's more macroeconomic or political at this point?
John Pancari: Good morning. Steve, you mentioned on the competitive backdrop. I know you mentioned the commercial dynamics already. Can you discuss a little bit more on the consumer side? I know, you know, competing card players are leaning in still to their travel rewards programs and all that. And then what poses the greatest risk to your 2026 outlook? Is it that competitive dynamic, or would you say it's more macroeconomic or political at this point?
Speaker #4: Thank you . The next question is coming from John Pancari Evercore ISI . Please go ahead .
Speaker #12: Good morning , Steve . You mentioned on the competitive backdrop . I know you mentioned the commercial dynamics already . Can you discuss a little bit more on the consumer side ?
Speaker #12: I know competing card players are leaning in still to their travel rewards programs and all that . And then what poses the greatest risk to your 2026 outlook ?
Stephen J. Squeri: I would say it's, you know, if you look at risk, it's more macroeconomic or political. The competitive dynamic has been here since the financial crisis. I mean, this became a very interesting business after the financial crisis because it's, you know, it's a great return. It's a category that continues to grow about 8% every year. It's a great return on assets for people, and it's a great way to deploy capital. So, the competitive dynamic in consumer is as tough as it's ever been. You know, JP Morgan's out there, Citi's out there, Capital One's out there.
Steve Squeri: I would say it's, you know, if you look at risk, it's more macroeconomic or political. The competitive dynamic has been here since the financial crisis. I mean, this became a very interesting business after the financial crisis because it's, you know, it's a great return. It's a category that continues to grow about 8% every year. It's a great return on assets for people, and it's a great way to deploy capital. So, the competitive dynamic in consumer is as tough as it's ever been. You know, JP Morgan's out there, Citi's out there, Capital One's out there.
Speaker #12: Is it that competitive dynamic, or would you say it's more macroeconomic or political at this point?
Speaker #2: would I say it's , you know , if you look at risk , it's more macroeconomic or political . The competitive dynamic is , is been here since the financial crisis .
Speaker #2: I mean , this became a very , a very interesting business after the financial crisis because it's , you know , it's a it's a great return .
Speaker #2: It's a , it's a , that category it's a continues to grow about 8% every year . It's a great return on assets for people , and it's a great way to deploy capital .
Speaker #2: So the competitive in consumer is as tough as it's ever been. You know, Morgan's out there. Citi's out there. Capital One's out there.
Stephen J. Squeri: You know, the challenge for us has been the challenge that we've faced for the last 15 years: to stay one or two or three steps ahead of our competitors. You know, when you look at what our competitors are doing, they are following our playbook. So our goal is to continue to move, you know, that playbook to a higher level, and that's what we'll continue to do, to execute, and provide fantastic service to our customers. The one thing I'll say that nobody has really been able to replicate is our customer service. We continue year-over-year to perform and win the J.D. Power Award for service. I think service is sometimes an underlooked component of the overall value proposition, and it's one that we invest in quite heavily.
You know, the challenge for us has been the challenge that we've faced for the last 15 years: to stay one or two or three steps ahead of our competitors. You know, when you look at what our competitors are doing, they are following our playbook. So our goal is to continue to move, you know, that playbook to a higher level, and that's what we'll continue to do, to execute, and provide fantastic service to our customers. The one thing I'll say that nobody has really been able to replicate is our customer service. We continue year-over-year to perform and win the J.D. Power Award for service. I think service is sometimes an underlooked component of the overall value proposition, and it's one that we invest in quite heavily.
Speaker #2: And, you know, the challenge for us is—when the challenge that we've faced for the last 15 years—is to stay one, or two, or three steps ahead of our competitors.
Speaker #2: And , you know , when you look at what our competitors are doing , they are following our playbook . And so our our goal is to continue to move , you know , that to a higher level .
Speaker #2: And that's what we'll continue to do . And to execute and provide fantastic service to our to our customers . The one thing I'll say that nobody has really been able to replicate is our customer service .
Speaker #2: I mean, we continue year over year to perform and win the J.D. Power Award for service. And I think service is sometimes an underlooked overall component of the value proposition.
Stephen J. Squeri: So, it's a highly competitive market. We never rest on our laurels and, you know, we'll keep fighting and keep anticipating where the competition is gonna go and, you know, and beat them to that point.
So, it's a highly competitive market. We never rest on our laurels and, you know, we'll keep fighting and keep anticipating where the competition is gonna go and, you know, and beat them to that point.
Speaker #2: And it's one that we invest in quite heavily . So it's a highly market . We we on our and , you know , we'll we'll keep keep fighting and keep anticipating where the competition is going to go .
Operator: Thank you. The next question is coming from Moshe Orenbuch of TD Cowen. Please go ahead.
Operator: Thank you. The next question is coming from Moshe Orenbuch of TD Cowen. Please go ahead.
Speaker #2: And, you know, them to that point.
Christophe Le Caillec: Great, thanks. And most of my questions have actually been asked and answered. But I was hoping you could expand a little bit on, you know, how you're, you know, kind of positioning American Express with your kind of recent acquisitions versus, you know, in that small business, you know, arena, you know, given the, the competition, which-
Moshe Orenbuch: Great, thanks. And most of my questions have actually been asked and answered. But I was hoping you could expand a little bit on, you know, how you're, you know, kind of positioning American Express with your kind of recent acquisitions versus, you know, in that small business, you know, arena, you know, given the, the competition, which-
Speaker #4: Thank you . The question is coming from Moshe Orenbuch TD Please go ahead .
Speaker #12: Great .
Speaker #13: questions have actually . Most of my Thanks been asked and answered , but I was hoping you could expand a little bit on , you know , how you're kind of positioning American Express with your kind of acquisitions versus , you know , in small that business , you know you know , , arena , given the the competition which obviously has always been there from , you know , some of those larger private companies and now , you know , obviously one of them will be combining with , you know , with a large bank .
[Analyst] (Truist): ... obviously has always been there from, you know, some of those larger private companies, and now, you know, obviously, one of them will be combining with, you know, with a large bank.
... obviously has always been there from, you know, some of those larger private companies, and now, you know, obviously, one of them will be combining with, you know, with a large bank.
Stephen J. Squeri: Yeah, look, I think that, as I said, you know, with our Center acquisition, especially from a small business perspective, you know, rather than partnering with expense management providers, as we've done with whether it was Concur or IBM before that, we'll now have our own expense management, expense management offering. And I think it's what small businesses want, it's what middle market companies want. I think additionally, I'm not going to get into the details on this call, but we will be sharing over the next couple of months, just a roadmap of where we are going from a commercial perspective, both from a product perspective, an integration perspective, and, you know, other technical capabilities, that we will, we will be adding. I think the small business and middle market space is highly competitive.
Steve Squeri: Yeah, look, I think that, as I said, you know, with our Center acquisition, especially from a small business perspective, you know, rather than partnering with expense management providers, as we've done with whether it was Concur or IBM before that, we'll now have our own expense management, expense management offering. And I think it's what small businesses want, it's what middle market companies want. I think additionally, I'm not going to get into the details on this call, but we will be sharing over the next couple of months, just a roadmap of where we are going from a commercial perspective, both from a product perspective, an integration perspective, and, you know, other technical capabilities, that we will, we will be adding. I think the small business and middle market space is highly competitive.
Speaker #2: I Yeah . Look , think that as I said , you know , with our center acquisition , especially small from a business perspective , you know , rather than partnering with expense management providers , as we've done with whether it was concur or IBM before , that , we'll now have our own expense management , expense management offering .
Speaker #2: And I think it's what small businesses want . It's what middle market companies want , I think additionally , and I'm not going to get into the details on this call , but we will be sharing over the next couple of months .
Speaker #2: a Just roadmap of where we are going from a commercial , both perspective from a product and perspective integration perspective and , you know , other technical capabilities that we will we will be adding .
Stephen J. Squeri: It's been very competitive as it relates to a value proposition perspective. And I think, you know, now the puck is moving and has moved from a software perspective. I think the combination of Capital One and Brex is, you know, a very good move for Capital One. It's probably a good move for Brex as well. It's great software, and you put a balance sheet together, and I think that works. They'll work on their integration issues and challenges like you do when you have an acquisition like that. But I think when we're out in the marketplace, I feel that we're gonna be able to compete quite effectively.
It's been very competitive as it relates to a value proposition perspective. And I think, you know, now the puck is moving and has moved from a software perspective. I think the combination of Capital One and Brex is, you know, a very good move for Capital One. It's probably a good move for Brex as well. It's great software, and you put a balance sheet together, and I think that works. They'll work on their integration issues and challenges like you do when you have an acquisition like that. But I think when we're out in the marketplace, I feel that we're gonna be able to compete quite effectively.
Speaker #2: I think the small business and middle market space is highly competitive. It's very competitive, especially as it relates to a value proposition perspective.
Speaker #2: And I think , you know , now you know , the , the puck is now moving and has moved to from a software perspective .
Speaker #2: think the I combination of of Capital of One and Brex is a , you know , it's a it's a very good move for , for , for Capital One .
Speaker #2: probably a It's good move for Brex as well . great software . And you put a balance sheet together and I think that works .
Speaker #2: They'll work on their integration issues and challenges like like you do when you have a an acquisition like that . But I think when we're out in the marketplace , I feel that we're going to be able to compete quite effectively .
Stephen J. Squeri: So, more to come on it, but it is, you know, it's it'll, it'll be a, a battleground, just like it has been. It's just that it's gonna be a battleground on even more multiple fronts now.
So, more to come on it, but it is, you know, it's it'll, it'll be a, a battleground, just like it has been. It's just that it's gonna be a battleground on even more multiple fronts now.
Speaker #2: So more to come on it . But it is , you know , it's a it'll be a like it battleground just has been .
Operator: Thank you. The next question is coming from Mihir Bhatia of Bank of America. Please go ahead.
Operator: Thank you. The next question is coming from Mihir Bhatia of Bank of America. Please go ahead.
Speaker #2: It's just that it's going to be a battleground on even more multiple fronts . Now .
[Analyst] (Bank of America): Hi, good morning, and thank you for taking my question. Steve, you kind of may have preempted a little bit of my question with that last answer, but I was just wondering, you know, obviously, in 2025, the Platinum refresh was a big thing at Amex. As we got into 2026, are there two or three initiatives that are really high impact that you're working on, that we should be thinking about? Just like, what are the priorities, I guess, for 2026?
Mihir Bhatia: Hi, good morning, and thank you for taking my question. Steve, you kind of may have preempted a little bit of my question with that last answer, but I was just wondering, you know, obviously, in 2025, the Platinum refresh was a big thing at Amex. As we got into 2026, are there two or three initiatives that are really high impact that you're working on, that we should be thinking about? Just like, what are the priorities, I guess, for 2026?
Speaker #4: Thank you. The next question is coming from Mihir Bhatia of Bank of America. Please go ahead.
Speaker #14: Good Hi . morning . Thank you for taking my question , Steve , you kind of preempted a little bit of my question with that last answer , but I was just wondering , you know , obviously in 2025 , the platinum refresh was a big thing at Amex , as we go into 2026 , are 2 or 3 there initiatives that are really high impact that you're working be thinking we should , or that about ?
Stephen J. Squeri: I mean, look, the priorities are pretty much, you know, if you think about even the Platinum refresh, you go back to sort of strategic priorities that we have from a company perspective, which is really to win in the premium space, to continue to build our position in commercial. You know, obviously, our coverage and our network initiatives, and we're gonna continue to focus on those things. I mean, you know, listen, the Platinum Card is launched, right? Now, we wanna continue to get value out of that Platinum launch in both consumer and in small business. We're gonna continue to build coverage, obviously, in International as that continues to grow and continues to be the fastest growing, overall part of our business.
Steve Squeri: I mean, look, the priorities are pretty much, you know, if you think about even the Platinum refresh, you go back to sort of strategic priorities that we have from a company perspective, which is really to win in the premium space, to continue to build our position in commercial. You know, obviously, our coverage and our network initiatives, and we're gonna continue to focus on those things. I mean, you know, listen, the Platinum Card is launched, right? Now, we wanna continue to get value out of that Platinum launch in both consumer and in small business. We're gonna continue to build coverage, obviously, in International as that continues to grow and continues to be the fastest growing, overall part of our business.
Speaker #14: Just like , what are the priorities ? I guess , for 2026 ?
Speaker #2: the I mean , look , pretty much , you know , if you think about even the platinum refresh , you go back to sort of strategic priorities that we have from a company perspective , which is really to win in a premium space , to continue to , to , to build our position in commercial , you know , obviously our coverage and our network initiatives and we're going to continue to focus on those things .
Speaker #2: I mean , you know , listen , the platinum , the platinum card is launched now . We want right to continue to get value out of that platinum launch in both both consumer and in small business .
Speaker #2: We're going to continue to build to build coverage . Obviously in international as that as that to grow continues continues to be the fastest growing overall part of our of our business , and we're going to build more continue to capabilities , both digital capabilities discussed for and capabilities , our for our small business customers .
Stephen J. Squeri: And we're gonna continue to build more capabilities, both digital capabilities and capabilities, as we just discussed, for our small business customers. And then, you know, we've got Resy and Tock, and we're gonna be combining those as the year goes on. And I think those two acquisitions have been really great for us, as you see, the differential in overall restaurant spending and overall restaurant Resy spending, which is not only good for our card members, good for us, but good for the restaurants as well. So, I mean, you know, as I said to somebody on one of our calls recently, I think when you sort of look at this year, it's more of the same for us, right?
And we're gonna continue to build more capabilities, both digital capabilities and capabilities, as we just discussed, for our small business customers. And then, you know, we've got Resy and Tock, and we're gonna be combining those as the year goes on. And I think those two acquisitions have been really great for us, as you see, the differential in overall restaurant spending and overall restaurant Resy spending, which is not only good for our card members, good for us, but good for the restaurants as well. So, I mean, you know, as I said to somebody on one of our calls recently, I think when you sort of look at this year, it's more of the same for us, right?
Speaker #2: And then , you know , we've got resi and talk and we're going to be combining those as the year goes on . As and I think those two acquisitions have been really great for us , as you as you see , the differential in overall restaurant spending and overall restaurant resi spending , which is not only good for our card members , it's good for us , but good for the restaurants as well .
Speaker #2: So I mean , you know , as I said to somebody on , you know , one of our , one of our calls recently , I think when you , you sort of look at this year , it's it's more of the same for us .
Stephen J. Squeri: It'll be we're still gonna have product refreshes, not as big as we had from a Platinum perspective, this year. But the fact that we continue to refresh our products, that we continue to refresh our technology base, that we continue to make more things available to our consumers, that we continue to build on partnerships, and that we continue to use those partnerships to bring value to our card members, is something that we're gonna continue to lean into.
It'll be we're still gonna have product refreshes, not as big as we had from a Platinum perspective, this year. But the fact that we continue to refresh our products, that we continue to refresh our technology base, that we continue to make more things available to our consumers, that we continue to build on partnerships, and that we continue to use those partnerships to bring value to our card members, is something that we're gonna continue to lean into.
Speaker #2: Right . It'll be we're still going to have product not as refreshes , big as we had from a platinum perspective this year , but the fact that we continue to refresh our our products , that we continue to refresh our technology base , that we continue to make more things available to our consumers , that we continue to build on partnerships and that we continue to use those partnerships to bring value to our card members , is something that we're going to continue to lean into .
Operator: Thank you. The next question is coming from Brian Foran of Truist. Please go ahead.
Operator: Thank you. The next question is coming from Brian Foran of Truist. Please go ahead.
[Analyst] (Truist): Hey, good morning. I guess you've touched on my question a little bit, through various answers, but I just want to circle back. You know, I, I do hear a lot of investor concern for Amex and for the market as a whole, you know, just whether the cost to grow is getting too high. And it is tough to measure from the outside, partly because of the investment required upfront to get premium customers, and then partly, you know, I feel like I've been doing this 20 years, and I still have to constantly relearn the lesson that credit card accounting pulls forward a lot of the expenses and spreads out a lot of the benefits. You know, you've been very clear the metrics you're watching show that you're putting on good, very good, very profitable growth.
Brian Foran: Hey, good morning. I guess you've touched on my question a little bit, through various answers, but I just want to circle back. You know, I, I do hear a lot of investor concern for Amex and for the market as a whole, you know, just whether the cost to grow is getting too high. And it is tough to measure from the outside, partly because of the investment required upfront to get premium customers, and then partly, you know, I feel like I've been doing this 20 years, and I still have to constantly relearn the lesson that credit card accounting pulls forward a lot of the expenses and spreads out a lot of the benefits. You know, you've been very clear the metrics you're watching show that you're putting on good, very good, very profitable growth.
Speaker #4: The next Thank you . question is coming from Brian Ferran of Truist . Please go ahead .
Speaker #15: Morning. Hey, good. I guess you've touched on my question a little bit through various answers, but I just want to circle back.
Speaker #15: You know , hear a lot of I do investor concern for Amex and for the market as a whole . You know , just whether the cost to grow is getting too high .
Speaker #15: it is tough to And from the measure outside , partly because of the investment upfront required to get premium customers and then partly , you know , I feel like I've been doing this 20 years and I still have to constantly relearn the lesson that credit card accounting pulls forward a lot of the expenses and spreads out a lot of the benefits .
[Analyst] (Truist): You've shared some of them with us here. You've talked about the rigor behind measuring that. But I wonder, as you look across all your businesses, you know, you touch a lot of customers, geographies, marketing, co-brand channels, rewards, benefits. Is there any part of the market where you do think it's getting overheated and where you have adjusted or might need to adjust? Or is this kind of cost to grow concern in the market right now, really just kind of economic and accounting dynamics, showing us all the costs upfront and the benefits more on the lag?
You've shared some of them with us here. You've talked about the rigor behind measuring that. But I wonder, as you look across all your businesses, you know, you touch a lot of customers, geographies, marketing, co-brand channels, rewards, benefits. Is there any part of the market where you do think it's getting overheated and where you have adjusted or might need to adjust? Or is this kind of cost to grow concern in the market right now, really just kind of economic and accounting dynamics, showing us all the costs upfront and the benefits more on the lag?
Speaker #15: You know , you've been very clear the metrics you're watching show that you're good , very good , very profitable growth . You've shared some of them with us here .
Speaker #15: You've talked about the rigor behind measuring that , but I wonder as you look across all your know , you touch a lot of businesses , you customers , geographies , marketing , co-brand channels , rewards , benefits .
Speaker #15: Is there any part of the market where you do think it's getting overheated, and where you might need to adjust? Or adjust— is this kind of cost to grow?
Speaker #15: Concern in the market right now really just kind of economic and accounting dynamics showing us all the front? It costs up front, and more on the benefits leg.
Stephen J. Squeri: Well, I'll let Christophe comment after I comment. I'd look at the last four or five years, and I'd look at what our guidance is. What we're basically saying here is consistently, we're gonna grow 10%, and consistently, we're gonna deliver you mid-teen EPS growth. Not a lot of companies do that... and we are committed to doing that. One of the earlier questions was, well, if you have extra flexibility, are you going to drop it down to shareholders? A couple of years ago, we had extra flexibility with the Accertify gain, we dropped it down to shareholders.
Steve Squeri: Well, I'll let Christophe comment after I comment. I'd look at the last four or five years, and I'd look at what our guidance is. What we're basically saying here is consistently, we're gonna grow 10%, and consistently, we're gonna deliver you mid-teen EPS growth. Not a lot of companies do that... and we are committed to doing that. One of the earlier questions was, well, if you have extra flexibility, are you going to drop it down to shareholders? A couple of years ago, we had extra flexibility with the Accertify gain, we dropped it down to shareholders.
Speaker #2: Well , I'll let Christoph comment after I comment . I look at the last 4 or 5 years and I'd look at what our guidance is and what we're basically saying here is consistently , we're going to grow 10% and consistently we're going to deliver you mid-teens EPs growth .
Speaker #2: Not a lot of companies do that . And we are committed to doing that . And one of the earlier questions was , well , if you have extra flexibility , you're going to to drop it down shareholders .
Stephen J. Squeri: I think one of the reasons we have been able to have this consistent growth trajectory over the last, really five years now, and going into this year is the plan, is because we have stayed true to who we are, and we have made investments for the longer term and not taken any short-term shortcuts.
I think one of the reasons we have been able to have this consistent growth trajectory over the last, really five years now, and going into this year is the plan, is because we have stayed true to who we are, and we have made investments for the longer term and not taken any short-term shortcuts.
Speaker #2: A couple of years ago , we had extra flexibility with the certified gain . We dropped it down to shareholders . I think one of the reasons we have been able to have this consistent growth trajectory over the last really five years now , and going into this year is the plan is because we have stayed true to who we are and we have made investments for the longer term and not taking any short term shortcuts .
Stephen J. Squeri: And so, you know, while people may not be happy all the time, that, "Hey, you had some extra money and you invested it, why didn't you drop that to shareholders this year?" It's because our goal is to drive consistent shareholder returns year after year over year after year, to continue to grow our dividend in line with how we're growing EPS, to continue to do our share buyback program, to continue to return capital to shareholders, which has allowed us to drive our market cap up and has allowed us to be consistent. You know, it's really been the same old story with Amex for the last four or five years, and that's what we're gonna continue. So I don't look at the cost to grow as all that, all that expensive right now.
And so, you know, while people may not be happy all the time, that, "Hey, you had some extra money and you invested it, why didn't you drop that to shareholders this year?" It's because our goal is to drive consistent shareholder returns year after year over year after year, to continue to grow our dividend in line with how we're growing EPS, to continue to do our share buyback program, to continue to return capital to shareholders, which has allowed us to drive our market cap up and has allowed us to be consistent. You know, it's really been the same old story with Amex for the last four or five years, and that's what we're gonna continue. So I don't look at the cost to grow as all that, all that expensive right now.
Speaker #2: And so, you know, while people may not be happy all the time that, hey, the time you had some extra money and you invested it, why didn't you drop that to shareholders?
Speaker #2: This year ? because It's our goal is to drive consistent shareholder returns year after year , over year after year , to continue to grow our dividend in line with how we're growing EPs continue to , to do our share buyback program , to continue to return capital to shareholders , which has allowed us to drive our market cap up and has be us to allowed .
Speaker #2: know , You really been the same old it's story with Amex for the last 4 or 5 years , and that's what we're going to continue .
Stephen J. Squeri: I mean, we stay out of things that we think are non-economical. And there are portfolios out there that we do not think are economical. We do not bid on it. You know, we have a large co-brand portfolio, and we believe that that portfolio is a one plus one equals three for us. And we have a great premium customer base. We're growing very strongly internationally, and we still see those growth prospects over the horizon. As I said earlier, this is a market that continues to grow, on a global basis by about 8%. So you know, again, I don't share the, "It looks like it's too expensive to be in this business." I think you may see from time to time, you'll see some rewards costs that get a little bit higher.
I mean, we stay out of things that we think are non-economical. And there are portfolios out there that we do not think are economical. We do not bid on it. You know, we have a large co-brand portfolio, and we believe that that portfolio is a one plus one equals three for us. And we have a great premium customer base. We're growing very strongly internationally, and we still see those growth prospects over the horizon. As I said earlier, this is a market that continues to grow, on a global basis by about 8%. So you know, again, I don't share the, "It looks like it's too expensive to be in this business." I think you may see from time to time, you'll see some rewards costs that get a little bit higher.
Speaker #2: So I don't look at the cost to grow as all that , all that expensive . Right now . I mean , we've we stay things that out of we think are not economical .
Speaker #2: And there are portfolios out there that we do not think are economical . We do not bid on it . You know , we have a large co-brand portfolio and we believe that that portfolio is a one one plus equals three for us have a .
Speaker #2: great And we premium customer base . We're growing very strongly internationally , and we still see those growth prospects over the horizon . As I said earlier , this is a market that continues to grow on a global basis by about 8% .
Speaker #2: So I , you know , again , I don't share the it looks like it's too expensive to be in this business . I think you may see time time to from you'll see some rewards , costs that get a little bit higher .
Stephen J. Squeri: You might see some incentives offset get a little bit higher. But I think what people fail to do is to look in aggregate at the entire expense base and how one investment plays off another investment. So when Christophe and I sit down and look at the expense base, we look at an investment, how it impacts our operating leverage, how it impacts our credit performance, how it impacts our ability maybe to dial back marketing, or maybe we have to dial up marketing. So there's a lot of leverage that we're pulling. We've been doing this a long time now, and so we feel really good about 2026 and beyond at this point, given the macro environment that we have, the political, you know, with all the, you know, with all the contingencies that are out there.
You might see some incentives offset get a little bit higher. But I think what people fail to do is to look in aggregate at the entire expense base and how one investment plays off another investment. So when Christophe and I sit down and look at the expense base, we look at an investment, how it impacts our operating leverage, how it impacts our credit performance, how it impacts our ability maybe to dial back marketing, or maybe we have to dial up marketing. So there's a lot of leverage that we're pulling. We've been doing this a long time now, and so we feel really good about 2026 and beyond at this point, given the macro environment that we have, the political, you know, with all the, you know, with all the contingencies that are out there.
Speaker #2: You might see some incentives , offers get a little bit higher , but I think what people fail to do is to look in aggregate at the entire expense base and how one investment plays off another investment .
Speaker #2: And so when and I Christoph sit down and look at the expense base , we look at it investment , how it impacts our operating leverage , how it impacts our credit performance , how it impacts our ability , maybe to dial back marketing , or maybe we have to dial up marketing .
Speaker #2: So, there’s a lot of levers that we’re pulling. We’ve been doing this a long time now, and so we feel really good about ’26 and beyond at this point.
Stephen J. Squeri: But yeah, I don't view this as an overheated market in any way, shape, or form for us. It's competitive, no doubt, but I don't think it's overheated from a cost perspective.
Speaker #2: Given the macro environment that we have , the political , you know , with all the , you know , with all the contingencies that are out there .
But yeah, I don't view this as an overheated market in any way, shape, or form for us. It's competitive, no doubt, but I don't think it's overheated from a cost perspective.
Speaker #2: But yeah , I don't I don't view this as an overheated market in any way , shape or form for us , it's competitive , no doubt , but I don't think it's overheated from a cost perspective .
Christophe Le Caillec: Yeah. I'll add two more thoughts, Brian. The first one is, you know, when you look at the quarter we're reporting, these are an outcome of a lot of decisions we made 2 years ago, 5 years ago, 10 years ago, 25 years ago. That's the way we think about the decisions we're making now. When we are acquiring a new card member, we're thinking about that card member, not only in terms of what that card member will do to us this year or next year, we're thinking about the next 20 years. That's very much critical to the way we make all our decisions.
Christophe Le Caillec: Yeah. I'll add two more thoughts, Brian. The first one is, you know, when you look at the quarter we're reporting, these are an outcome of a lot of decisions we made 2 years ago, 5 years ago, 10 years ago, 25 years ago. That's the way we think about the decisions we're making now. When we are acquiring a new card member, we're thinking about that card member, not only in terms of what that card member will do to us this year or next year, we're thinking about the next 20 years. That's very much critical to the way we make all our decisions.
Speaker #3: Yeah , I'll add two more thoughts . Brian . The first one is , you know , when you look at there , the quarter , we're reporting .
Speaker #3: These are an outcome of a lot of decisions we made two years ago . Five years ago , ten years ago , 25 years ago , and we that's the way we think about the decisions we're making now when we are new card .
Speaker #3: acquiring a Member , we're thinking about that card member , not only in terms of what that card member will do to us this year or next year .
Speaker #3: We're thinking about the next 20 years . That's very much critical to the way we make all our decisions . And and when you think about specifically the cost of growth on the this platinum back of refresh , when I look at the cost of and welcome acquiring offers that we put on the market , we've seen some of the lowest cost of acquisition for platinum in two years happening , the last like in Q4 .
Christophe Le Caillec: When you think about specifically the cost of growth, on the back of this Platinum refresh, when I look at the cost of acquiring and welcome offers that we put on the market, we've seen some of the lowest cost of acquisition for Platinum in the last two years happening, like, in Q4. And so it's definitely a very competitive place. We have invested in value proposition. We have an amazing brand. We have a technology that allow us to personalize those offers and optimize the cost of origination and acquisition. And when you put all of this together, and you combine that with that long-term view that we have on those relationships, I can tell you the economics are very compelling, and that's why we and that's how we are allocating our investment dollars.
When you think about specifically the cost of growth, on the back of this Platinum refresh, when I look at the cost of acquiring and welcome offers that we put on the market, we've seen some of the lowest cost of acquisition for Platinum in the last two years happening, like, in Q4. And so it's definitely a very competitive place. We have invested in value proposition. We have an amazing brand. We have a technology that allow us to personalize those offers and optimize the cost of origination and acquisition. And when you put all of this together, and you combine that with that long-term view that we have on those relationships, I can tell you the economics are very compelling, and that's why we and that's how we are allocating our investment dollars.
Speaker #3: And so it's definitely a very competitive place. We have invested in value proposition. We have an amazing brand. We have a technology that allows us to personalize those offers and optimize the cost of origination and acquisition.
Speaker #3: And when you put all of this together and you combine that with that long term view that we have on those relationships , I can tell you the economics are very compelling , and that's why we and that's how we are allocating our our investment dollars .
Stephen J. Squeri: Thank you. Our final question will come from Chris Kennedy of William Blair. Please go ahead.
Operator: Thank you. Our final question will come from Chris Kennedy of William Blair. Please go ahead.
[Analyst] (William Blair): Morning. Thanks for squeezing me in. You've given a lot of great engagement metrics, and you do have the new data analytics platform on the horizon. Can you just talk about, you know, that journey and the, the tools that you'll have to drive more card member engagement as you get into AI, et cetera, et cetera?
Chris Kennedy: Morning. Thanks for squeezing me in. You've given a lot of great engagement metrics, and you do have the new data analytics platform on the horizon. Can you just talk about, you know, that journey and the, the tools that you'll have to drive more card member engagement as you get into AI, et cetera, et cetera?
Speaker #4: Thank you. Our final question will come from Chris Kennedy of William Blair. Please go ahead.
Speaker #16: for Morning . Thanks squeezing me in . You've given a lot of great engagement metrics , and you do have the new data analytics platform on the horizon .
Speaker #16: you just Can talk about , you know , that and journey the tools that you'll have to drive more ? Card member engagement as you get into AI , etc.
Stephen J. Squeri: Well, I think as you know, look, and we're constantly, this is, I think, in the last 10 years, the third big data mart conversion that we've done here, as you know, the technology gets better and better. I think what's really exciting for us is to be able to take Large Language Models that are out there and take our data and insert that in and really come up with great card member offers, great card member insights, be able to create archetypes of various cardholders and be able then to treat cardholders in a and target cardholders in a much more effective way. And we'll roll those tools out and access to that entire data mart across the entire company.
Steve Squeri: Well, I think as you know, look, and we're constantly, this is, I think, in the last 10 years, the third big data mart conversion that we've done here, as you know, the technology gets better and better. I think what's really exciting for us is to be able to take Large Language Models that are out there and take our data and insert that in and really come up with great card member offers, great card member insights, be able to create archetypes of various cardholders and be able then to treat cardholders in a and target cardholders in a much more effective way. And we'll roll those tools out and access to that entire data mart across the entire company.
Speaker #16: , etc. ?
Speaker #2: Well , I think as you know , look , and we're constantly this is I think in the last ten years , the third , the third , the third big Data Mart conversion that we've done here , as you know , as technology gets better and better , I think what's what's really exciting for us is to be able to take large language models that are out there and take our data and insert that in , and really come up with great card member offers , great card member insights , be able to create archetypes of various cardholders and be able then to treat cardholders in a and target cardholders in a in a much more effective way .
Stephen J. Squeri: And so it takes till 2027 because you're, you're doing it sort of organization by organization, process by process, application by application. But we're already seeing some, some benefits of that in some of our card member marketing, which again, leads to some of the reduction in overall, in overall cost. So we're, we're excited by that. We're excited that it's on the cloud, which gives us the ability to expand that, on a, on a very dynamic basis. And so I think as, as we go on, we'll be able to talk more about just how the proof points of that comes out.
And so it takes till 2027 because you're, you're doing it sort of organization by organization, process by process, application by application. But we're already seeing some, some benefits of that in some of our card member marketing, which again, leads to some of the reduction in overall, in overall cost. So we're, we're excited by that. We're excited that it's on the cloud, which gives us the ability to expand that, on a, on a very dynamic basis. And so I think as, as we go on, we'll be able to talk more about just how the proof points of that comes out.
Speaker #2: And so . And we'll roll those tools out and access to that entire data mart across the entire company . And so it takes until 2027 because you're doing organization , by it sort of application .
Speaker #2: And so . And we'll roll those tools out and access to that entire data mart across the entire company . And so it takes until 2027 because you're doing organization , by it sort of process Application by process .
Speaker #2: But we're already seeing some some benefits of that in some of our card member marketing , which again leads to some of the reduction in overall in overall costs .
Speaker #2: So we're we're excited by that . We're excited that it's on the cloud , which gives us the ability to expand that on a on a very dynamic basis .
Stephen J. Squeri: But, this is a business that, you know, not only you have to invest in value propositions, but you really have to invest in a light way in the technology behind it, because ultimately, it's the technology that drives those value propositions, and it's the technology that drives the appropriate engagement with your cardholders.
But, this is a business that, you know, not only you have to invest in value propositions, but you really have to invest in a light way in the technology behind it, because ultimately, it's the technology that drives those value propositions, and it's the technology that drives the appropriate engagement with your cardholders.
Speaker #2: And so I think as we go on, we'll be able to talk more about just how the proof points of that come out.
Speaker #2: But this is a business that , you know , not only do you have to invest in value propositions , but you really have to invest in a like way in the technology behind it , because ultimately it's a technology that drives those value propositions , and it's a technology to drives the appropriate engagement with your cardholders .
Christophe Le Caillec: With that, we will bring the call to an end. Thank you again for joining today's call and for your continued interest in American Express. The IR team will be available for any follow-up questions. Operator, back to you.
Kartik Ramachandran: With that, we will bring the call to an end. Thank you again for joining today's call and for your continued interest in American Express. The IR team will be available for any follow-up questions. Operator, back to you.
Speaker #1: With that , we will to an end bring the call . Thank you again for joining today's call and for your continued interest in American Express .
Operator: Ladies and gentlemen, the webcast replay will be available on our investor relations website at ir.americanexpress.com shortly after the call. You can also access a digital replay of the call at 877-660-6853 or 201-612-7415. Access code: 13757801, after 1:00 PM Eastern time on 30 January through 6 February. That will conclude our conference call for today. Thank you for your participation. You may now disconnect.
Operator: Ladies and gentlemen, the webcast replay will be available on our investor relations website at ir.americanexpress.com shortly after the call. You can also access a digital replay of the call at 877-660-6853 or 201-612-7415. Access code: 13757801, after 1:00 PM Eastern time on 30 January through 6 February. That will conclude our conference call for today. Thank you for your participation. You may now disconnect.
Speaker #1: The IR team is available for any follow-up questions. Operator, back to you.
Speaker #4: Ladies and gentlemen , the webcast replay will be available on Investor Relations our website at IR AMERICAN EXPRESS CO . Shortly after the call .
Speaker #4: You can also access a replay of the call at 877660685 3 or 2 016127415 . Access code 13757801 . After 1 p.m. eastern time on January 30th through February sixth , that will conclude our conference call for today .
