American Express has just gave an overview of how wealthy Americans go – they prosper, even members of the generation Z
Friday, American Express unveiled his results in the second quarter of 2025, he did not simply announce another cycle of record winnings. He offered a rare and high definition snapshot in the way wealthy Americans, high -end card holders at the heart of his activities, present themselves in a constant economic landscape. The short answer? Quite well, really.
American Express said record quarterly turnover of $ 17.9 billion, up 9% on the other, as well as total card members who jumped 7% over the same period in 2024 to a new summit of $ 416.3 billion. The business model of the company, which is strongly competing towards a easier customers, makes these figures a sort of barometer for the financial confidence of high -income Americans to spend.
Not only do these members of the card spend more, but they also show a renewed appetite for premium products and experiences. Critics have long said that the phenomenon of the “premium card” was cyclical or over-type, but American Express plowed with more bells and whistles for its affluent customers.
This leads to a significant warning: expenses increased by 14% in annual sliding, because the company has reinvested in technology and expanded risk management. He also cited “higher customer engagement costs led by the increase in expenditure of the members of the card and the use of the advantages linked to travel”, which means that the bells and the whistles that come with the premium cards are so attractive that they somewhat escape the margins of Amex. However, the issuer of the card has reaffirmed its growth prospects from 8% to 10% of income and a profit per share from $ 15 to $ 15.50.
During the conference calls with analysts after the publication of its income, the company’s management has sunk this dynamic, with a particularly strong momentum among the millennials and the Z generation which adopts the luxury value proposal of the brand. They want what premium cards offer, in other words.
Despite solid profits, the share price, which reached a record level earlier in the month, fell 2.6% in the afternoon trade. Truist Securities analyst Brian Foran commented in a research note that “some investors have passed to a state of mind” being good is not good enough “. This also suggests that all the advantages that come with these premium cards can be attractive to members, but the increase in the cost of their street service that is worried about the amount of Amex on its easy customers.
Generational wealth trends
Millennium expenses increased by 10%, while Gen Z card holders increased their expenses to 40% somewhat amazing (although a smaller base). This generational change augurs well for the premium space: not only the established and established wealth, but younger and mobile clients adopt the brand’s luxury value proposal.
And these new members seem to use their cards – a lot. Net card costs have increased by 20% in annual sliding (adjusted in FX), strengthening that more users opt for premium experiments. Card costs have been more than doubled since 2019, with recent refreshments on Gold, Delta and Hilton cards stimulating the growth of the two -digit account and 98%retention. Financial director Christophe Lakayak said that this validated the strategy of companies to “first acquire new customers on costs based on costs, then lead a strong retention of our customers, and finally, increase the value thanks to refreshments of products and at prices accordingly.”
At this stage, the company is preparing a significant refreshment of its American consumption and corporate platinum cards this fall – by taking off the luxury benefits and awards that the Millionaires of the Y Generation Y and the suction engineer want. In addition, the launch of the new Coinbase One card on the AMEX network adds a crypto-Forward wrinkle, intended for younger professionals and in search of digital goods. Amex is convinced that he has a “long track for growth” because the premium segment continues to develop.
Credit performance “Best in class”
Expenditure is robust, as is the financial health of the customers of Amex. The company has owned the lowest rate of the lowest credit card and the performance of the highest assets provided for in the federal reserve stress tests in 2025 – a testimony of the resilience and stability of its card holders, even in theoretical economic slowdowns.
For the second quarter, the AMEX’s net radiation rate increased to 2.0% (compared to 2.1% a year ago), which means unwavering bad debts. He also said that the overall credit performance remains “the best in class”. These are other ways to say that the overwhelming majority of customers spend not only – they also reliably pay their invoices.
This also applies to young men’s members. Lakayak noted on the call according to which delinquency rates for millennium and generation Z clients are not better than the average of the industry for these age groups, but they are also “almost 40% better than the industry average for older age groups”.
The comments on the call also extended the fact that the American Express Premium card offers too much good things, because its airport salons deal with problems of access and overcrowding. There are just too many easy card holders who want the living room experience before flying. “We are trying to enlarge the salons,” said CEO Steve Sueri in response to a question from his team of investors. He also said that they had to become “innovative” because the salons are so popular, citing a “side-car” arrangement that they used in Las Vegas airport, “which is more a small type of, I don’t know, maybe call it a kind of speakeasy living room, where if you just want to get a quick drink or take something quickly, you can do it.”
Record income – and climbing expenses – indicate that it will be popular for a while to come. A long track, indeed.
For this story, Fortune Used a generative AI to help an initial project. An editor checked the accuracy of the information before the publication.
