American Express achieved record third-quarter 2025 results, with net income rising 16% to $2.9 billion and earnings per share up 19% to $4.14, beating estimates. Revenue hit an all-time high of $18.43 billion, driven by younger affluent consumers accounting for 36% of spending. Shares surged 7%.

The top 10% of U.S. households contributed nearly 50% of consumer spending in the second quarter of 2025, reflecting a widening wealth gap. Premium brands like American Express benefit from this trend, with premium products appealing to affluent consumers despite price increases.

CEO Steve Squeri highlighted the successful launch of refreshed Platinum Cards, attracting new customers and exceeding expectations. The company’s focus on lifestyle perks and digital benefits resonates with young high-income consumers, leading to global expansion and increased spending among Platinum cardholders.

Amex raised its 2025 outlook, anticipating revenue growth of 9-10% and EPS of $15.20 to $15.50, driven by steady spending trends among affluent consumers. The company has returned 70% of earnings to investors over three years, with $2.9 billion returned this year through stock buybacks and dividends.

Squeri emphasized the importance of Millennials and Gen Z to Amex’s future, noting their evolving preferences and spending habits. The company’s Platinum Card has transformed into a premium lifestyle card with a wide range of benefits appealing across generations, driving record bookings and engagement.

American Express’ success mirrors that of Delta Air Lines, with premium offerings set to surpass main cabin revenue in 2026. Delta’s executives discussed a shift in demand towards premium products, highlighting the profitability of such offerings compared to traditional main cabin seats.

Read more at Yahoo Finance: ‘very comfortable paying for its exceptional value’