American Express Reports $17.9 Billion Revenue and $2.9 Billion Net Income in Q2 2025

American Express Company reported its financial results for the second quarter of 2025, revealing a total revenue of $17.9 billion, a 9% increase from $16.3 billion in the same period last year. The company's net income for the quarter was $2.9 billion, or $4.08 per diluted share, compared to $3.0 billion, or $4.15 per diluted share, in the prior year. The decrease in net income was attributed to a one-time gain from the sale of Accertify Inc. in 2024, which had inflated the previous year's figures. The company also noted an 8% increase in total revenues for the first half of 2025, reaching $34.8 billion, up from $32.1 billion in the first half of 2024.

In terms of operational metrics, American Express reported a 7% year-over-year growth in billed business, totaling $416.3 billion for the quarter. The company saw strong performance in its U.S. Consumer Services segment, which grew 7%, driven by increased spending among Millennial and Gen-Z cardholders. International Card Services experienced a notable 15% growth in billed business, reflecting robust demand across various regions. The total number of proprietary cards in force increased by 4% to 149.4 million, while the average fee per card rose by 16% to $117.

The company’s provisions for credit losses increased by 11% to $1.4 billion, reflecting a higher reserve build compared to the previous year. Despite this, American Express maintained stable net write-off and delinquency rates, which remained among the best in the industry. The company also reported a 12% increase in net interest income, driven by growth in balances and greater usage of lending features. Operating expenses rose by 14% to $12.9 billion, primarily due to increased Card Member rewards and business development expenses.

Strategically, American Express announced the acquisition of Center ID Corp., an expense management software company, for $590 million, which is expected to enhance its Commercial Services segment. The company also plans to refresh its U.S. Consumer and Business Platinum Cards later this year, aiming to strengthen its competitive position in the premium card market. Looking ahead, American Express expressed confidence in its ability to navigate the evolving economic landscape, emphasizing its focus on disciplined expense management and strategic investments to support long-term growth. The company aims to return excess capital to shareholders while maintaining a Common Equity Tier 1 capital ratio within its target range of 10% to 11%.