Is American Express a Buy Ahead of Its Platinum Card Refresh?
Key Points
Subscription-like card fee revenue is growing at strong, double-digit rates.
Management recently reaffirmed 2025 guidance, highlighting record spending -- even before the upcoming Platinum refresh.
At roughly 21 times this year's earnings guidance, the valuation looks attractive given American Express's broad-based growth drivers.
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American Express (NYSE: AXP) has quietly strung together a run of steady results while the company readies a sizable update to its flagship Platinum card in the U.S. The global payments company, which leans heavily on high-spending cardmembers, fee income, and a closed-loop network, continues to post healthy top-line growth and best-in-class credit performance. Shares have also marched higher in 2025 as investors reward that consistency.
There is no way to know how the stock will react to the Platinum card overhaul in the near term. But the underlying business numbers already point in the right direction, and a well-executed refresh could extend a multiyear trend of rising card fees and engagement. That combination makes the stock look attractive for investors with a longer horizon.
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Resilient growth backed by premium engagement
Recent results reinforce the strength of the business. In the second quarter of 2025, revenue rose 9% year over year to a record $17.9 billion, and earnings per share were $4.08. On an adjusted basis that excludes last year's gain from the sale of Accertify, earnings per share increased 17% year over year.
Management also highlighted record cardmember spending and reaffirmed full-year 2025 guidance for revenue growth of 8% to 10% and earnings between $15.00 and $15.50 per share.
"We saw record Card Member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class," said Chairman and CEO Stephen Squeri in the company's earnings release. He also pointed to the upcoming Platinum refresh this fall as a driver to "sustain our leadership in the premium space, drawing on our competitive strengths."
Under the hood, the company's revenue mix continues to shift toward high-margin revenue. Net card fees -- a key proxy for the strength of premium value propositions -- climbed 20% year over year to about $2.48 billion in the quarter. That stream has compounded at roughly 17% annually since 2019, supported by strong acquisition, elevated renewals, and ongoing product updates.
Meanwhile, discount revenue (the fee American Express earns from merchants when a cardmember uses an Amex card to make a purchase) increased 6% and net interest income rose 12% as revolving balances grew, underscoring American Express's broad-based growth drivers.
