Every American Express (AXP) Investor Should Keep an Eye on This Number

American Express (AXP) shares have outperformed the S&P 500, rising 18% in 2025, following a third-quarter earnings and revenue beat. The company exhibits strong pricing power, with the average fee per active card increasing 72% to $119 since Q3 2020, supported by its premium brand and valuable cardholder perks, such as the recent Platinum card refresh which boosted new sign-ups. This sustained ability to command higher fees highlights AXP's robust business model and market position.

Analysis

American Express (AXP) shares have demonstrated significant outperformance, rising 18% in 2025 and outpacing the broader S&P 500, following a third-quarter revenue and earnings per share beat against Wall Street estimates. This strong financial performance indicates robust operational execution and positive market reception for the company's strategic initiatives.

The company exhibits substantial pricing power, a key indicator of a high-quality business, with the average fee per active card increasing 72% since Q3 2020 to $119. This sustained ability to command higher fees is directly supported by its powerful brand and the valuable perks and rewards offered to cardholders.

Strategic enhancements, such as the recent Platinum card refresh introducing new shopping credits, successfully drove twice as many average weekly sign-ups for new cards than prior to the update. This highlights effective product innovation and sustained consumer demand for its premium offerings, reinforcing AXP's competitive advantage and ability to attract high-income consumers.

Key Decisions for Investors

• Investors should closely monitor AXP's continued ability to exercise pricing power, as evidenced by growth in average fees per card, given its direct correlation with fundamental business strength.
• Evaluate the impact of ongoing product innovation and premium perk enhancements on new card sign-ups and customer retention, as these drive future revenue and market share.
• Consider AXP's strong brand and high-income consumer base as a potential defensive characteristic, offering stability in varying economic conditions.