American Express recently announced record growth for Q3 2025, attributing this surge to the purchasing habits and loyalty of younger, affluent consumers. CEO Steve Squery highlighted the company’s success in attracting a new wave of premium customers, especially Millennials and Gen Z, who seem quite willing to invest in quality offerings.
The company posted a net income of $2.9 billion, reflecting a 16% increase year-over-year. Earnings per share grew by 19% to reach $4.14, surpassing analysts’ expectations of $3.99. Total revenue, excluding interest expenses, climbed 11% to $18.43 billion, beating the anticipated $18.05 billion, which also helped boost the stock price by 7%.
American Express credits its success to robust card usage across different categories and increasing engagement with younger affluent demographics. Millennials and Gen Z now make up 36% of total cardmember spending, which aligns with Gen X, and they are completing an average of 25% more transactions than older demographics. This group’s demand for premium products has enhanced the brand’s image as a preferred choice for luxury consumers seeking high-quality benefits and experiences.
Brands like American Express and Delta Air Lines are thriving amid shifts in the American economy, where premium products are increasingly favored, coinciding with a significant concentration of wealth. Research from Moody’s Analytics indicates that the top 10% of households will account for nearly half of all consumer spending this quarter, with consumer spending representing two-thirds of the overall economic activity in the U.S.
This economic imbalance is becoming more apparent, with Federal Reserve President Chris Waller noting that CEOs are reporting varied effects of tariffs, with top producers passing price increases directly to wealthier consumers, who seem less affected by rising costs. Waller estimated a “40% pass-through” rate, indicating a significant disparity; in contrast, lower-income consumers aren’t noticing any inflation at all, as even steep price hikes lead them to simply withdraw from spending.
New Diamond Card Boosts Engagement
“This quarter’s big news,” Mr. Squery stated during an earnings call, “is the rollout of our refreshed U.S. Consumer Platinum Card and Business Platinum Card.” He noted that this initiative is fortifying their leadership in the premium sector, adding that customer demand and engagement have exceeded expectations.
He indicated that this rollout is perhaps the strongest they’ve ever had, with new Platinum account acquisitions doubling compared to the prior iteration, and the newly designed card receiving over 500,000 requests within just three weeks.
Squery mentioned more enhancements in the pipeline, referring to their strategy of consistently updating products to boost customer engagement and growth. Since 2019, American Express has implemented over 200 updates globally, making this the third overhaul of the U.S. Platinum Card in the last decade.
The 2025 refresh offers lifestyle and digital perks that resonate with younger, higher-income consumers, featuring upgraded travel benefits as well as new options in wellness, entertainment, and delivery services. CFO Christophe Le Caillec reported a 24% increase in spending among Platinum cardholders outside the U.S., showing the brand’s global appeal among young professionals. He mentioned that currently, 70% of newly acquired accounts worldwide come from paid premium products.
With this positive momentum, American Express has upgraded its full-year 2025 outlook, predicting revenue growth of 9% to 10% and earnings per share ranging from $15.20 to $15.50, largely driven by strong spending patterns among wealthier consumers.
Over the last three years, the company has returned about 70% of its profits to shareholders, distributing $2.9 billion this year through $2.3 billion in stock buybacks and $600 million in dividends.
Focus on Millennials
Squery emphasized Millennials and Gen Z as vital to American Express’s future. “A few years back, we intentionally expanded our premium offerings to engage with new generations and adapt to their evolving needs.”
He also shared insights into the spending habits of affluent younger consumers, noting that when the Platinum Card was launched over 40 years ago, it catered to affluent travelers, but it has now transformed into a comprehensive premium lifestyle card with a broader array of benefits appealing to all ages. Reflecting on the last update post-pandemic, he acknowledged that younger members particularly value travel products along with benefits in digital entertainment, wellness, and delivery services. He pointed out that recent innovations, including a new all-in-one travel app launched in early September, have led to a record rise in bookings through AmEx Travel.
The trends reported by American Express echoed earlier results from Delta Airlines, which confirmed that its premium services are projected to generate more revenue than economy seats by 2026, ahead of initial expectations. Delta’s President and CEO Glenn Hauenstein remarked on the evolving demand for premium products, which have shifted from being loss leaders to high-margin offerings.
