Record Financial Performance
American Express reportedly posted its strongest third-quarter results in company history, with net income reaching $2.9 billion according to the earnings release. Sources indicate this represents a 16% increase compared to the same period last year, with earnings per share climbing 19% to $4.14, surpassing analyst expectations of $3.99. Total revenue net of interest expense reportedly reached an all-time high of $18.43 billion, marking an 11% year-over-year increase and exceeding the anticipated $18.05 billion. The strong performance prompted a 7% surge in American Express shares following the announcement.
Younger Affluent Consumers Drive Growth
Company leadership highlighted millennial and Gen Z card members as particularly significant contributors to the record performance. According to reports, these younger demographics now account for 36% of total card member spending, matching Generation X’s contribution. Analysts suggest these younger consumers are making 25% more transactions on average than older customers, demonstrating deeper engagement with premium products. CEO Steve Squeri described millennial and Gen Z Platinum members as “very comfortable paying for its exceptional value and highly engaged in the product” during the earnings call.
Premium Product Strategy Success
The company’s recent refresh of its U.S. Consumer Platinum Card and Business Platinum Card reportedly generated the strongest rollout response in the card’s history. According to the earnings call transcript, new Platinum account acquisitions doubled compared to pre-refresh levels, with more than 500,000 requests for the redesigned Mira card received within just three weeks. Company executives described this as part of a “proven strategy of refreshing our products on a regular basis to drive customer engagement and growth,” with over 200 product refreshes implemented globally since 2019.
Economic Context and Consumer Behavior
The success of premium products at American Express appears to reflect broader economic trends, according to analysts. Moody’s Analytics reportedly found that for the second quarter of 2025, the top 10% of households accounted for nearly 50% of all consumer spending. Federal Reserve Governor Chris Waller recently described a “two-tier” effect in the economy, noting that premium producers can pass through price increases directly to affluent consumers who show less price sensitivity. This pattern aligns with industry developments across multiple sectors where premium offerings are gaining traction.
Global Expansion and Future Outlook
Spending among Platinum cardholders outside the U.S. reportedly climbed 24%, signaling successful global expansion among young professionals. According to the company’s financial chief, 70% of new accounts acquired globally now come from fee-paying premium products. Given the strong momentum, American Express raised its full-year 2025 outlook and now anticipates revenue growth between 9% and 10% with EPS of $15.20 to $15.50. The company has returned approximately 70% of its earnings to investors over the past three years, including $2.9 billion through stock buybacks and dividends in 2025 alone.
Broader Premium Market Trends
The American Express results appear consistent with patterns seen across other premium-focused companies. Delta Air Lines recently confirmed to analysts that its premium offerings are expected to generate more revenue than the main cabin in 2026, a year ahead of schedule. Delta executives discussed an “inflection” in main cabin demand, with premium products transitioning from loss leaders to highest-margin offerings. This trend toward premiumization reflects market trends where affluent consumers increasingly prioritize quality benefits and experiences over price considerations.
Company leadership emphasized that the strategic focus on attracting younger affluent consumers began several years ago with a “conscious decision to widen our aperture for premium products.” The Platinum card, initially designed for well-established frequent travelers forty years ago, has evolved into a premium lifestyle card with benefits that appeal broadly across generations. This evolution in product strategy demonstrates how companies are adapting to related innovations in consumer preferences and spending habits.
The strong performance at American Express comes amid broader recent technology and economic shifts that are reshaping consumer spending patterns. As the company continues to leverage its premium positioning, analysts will be watching how these trends develop across the financial services sector and broader consumer economy.
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