Wealthy millennial, Gen Z Platinum members drive American Express to record revenue: ‘very comfortable paying for its exceptional value’

American Express reported record third-quarter 2025 results, with net income up 16% to $2.9 billion, EPS rising 19% to $4.14 (beating estimates), and revenue climbing 11% to $18.43 billion, leading to a 7% jump in shares. This strong performance was primarily driven by robust spending and engagement from affluent millennial and Gen Z Platinum cardholders, whose increased transactions and demand for premium products, bolstered by a successful Platinum card refresh, led the company to raise its full-year 2025 outlook. This trend aligns with a broader economic bifurcation where affluent consumers are driving demand for premium goods and services, as also observed with Delta Air Lines.

Analysis

American Express reported record Q3 2025 results, with net income rising 16% year-over-year to $2.9 billion and EPS increasing 19% to $4.14, significantly beating analyst estimates of $3.99. Total revenue, net of interest expense, climbed 11% to an all-time high of $18.43 billion, surpassing the anticipated $18.05 billion. This robust performance, which led to a 7% jump in shares, was primarily driven by strong spending and engagement from affluent millennial and Gen Z Platinum cardholders.

Millennials and Gen Z now constitute 36% of total card member spending, executing 25% more transactions than older customers, validating American Express's strategy to attract younger premium clientele. The successful refresh of the U.S. Consumer Platinum Card saw new account acquisitions double and over 500,000 requests for the redesigned Mira card in three weeks. This aligns with a broader economic trend where the top 10% of households account for nearly 50% of consumer spending, enabling premium producers to pass through price increases effectively.

Given this strong momentum, American Express raised its full-year 2025 outlook, projecting revenue growth between 9% and 10% and EPS of $15.20 to $15.50. The company also demonstrated commitment to shareholder returns, having returned approximately 70% of its earnings to investors over the past three years, including $2.3 billion in stock buybacks and $600 million in dividends this year.

Key Decisions for Investors

• Investors should consider American Express's sustained growth trajectory, driven by successful premium product strategies and strong engagement from affluent younger demographics, which supports its raised full-year guidance.
• Pay close attention to the ongoing economic bifurcation, as AXP's performance is heavily reliant on the spending power of affluent consumers, a trend that could be sensitive to shifts in wealth distribution or premium product demand.
• Evaluate the company's consistent capital return policy, including significant share buybacks and dividends, as a factor in total shareholder value, alongside its operational performance.