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American Express (AXP), a leading global payment provider, announced Thursday that it had achieved better than expected results in the first quarter of its fiscal year due to strong consumer spending.
The credit card giant announced first-quarter earnings of $3.64 per share on revenue that increased 7% year-overyear to $16.97billion. Visible Alpha surveyed analysts who had predicted $3.47 billion and $16.94billion, respectively. Net interest income was $4.17billion, slightly above the consensus of $4.10billion.
American Express CEO Stephen Squeri said the firm saw first-quarter consumer spending "consistent with and in many cases better than what we saw in 2024." The company affirmed its full-year outlook of 8% to 10% revenue growth and EPS of $15.00 to $15.50 "subject to the macroeconomic environment."
After rising immediately following the report's release, American Express shares were down more than 1% shortly after markets opened. They were down around 15% for the year.
Last week, Bank of America analysts upgraded its stock rating to “buy” and said that the firm’s “high quality customer base” will help it be more resistant in an economic downturn or recession.
UPDATE—This article has been updated with the latest share price information.
