By Anietie anii-bassey
American Express posted strong fourth-quarter results on Friday, reporting a 13% increase in profits as its affluent cardholders continued to spend heavily across categories ranging from luxury goods to dining and travel.
The New York-based financial services company said it earned $2.46 billion in the quarter, or $3.53 per share, compared with $2.17 billion, or $3.04 per share, in the same period a year earlier. Analysts had broadly anticipated the results, which came roughly in line with expectations, according to FactSet.
The growth underscores American Express’s ability to capitalize on both high spending by established customers and increased engagement from younger cardholders.
Cardmember spending totaled $506.2 billion in the fourth quarter, up from $464 billion a year ago, translating to an average of $6,696 per cardholder. At the same time, AmEx’s credit card loans rose to $213 billion, up from $199.1 billion a year ago, signaling that customers are not only spending more but are also carrying balances.
A key driver of the strong performance has been AmEx’s continued focus on rewards and premium offerings. The company refreshed its Platinum Card in September, adding benefits such as a $400 annual dining credit. While the changes boosted the card’s appeal, they came alongside an increase in the annual fee to $895.
Despite the higher cost, the company continues to attract new customers, particularly younger generations. For the first time in company history, Millennials and Gen-Z cardholders are collectively outspending Gen-X, historically the company’s most active spending demographic, according to Chief Financial Officer Christophe Le Caillec.
“Our strategy of providing premium benefits, tailored rewards, and a superior customer experience continues to resonate with our members,” Le Caillec said. “The shift toward younger cardholders demonstrates the company’s ability to adapt and attract the next generation of high-value customers.”
The company also announced a 2026 earnings forecast of $17.30 to $17.90 per share, signaling confidence in continued growth next year. In addition, AmEx said it would raise its quarterly dividend from 82 cents per share to 95 cents, reflecting both strong financial performance and a commitment to returning capital to shareholders.
Investors have noted that AmEx benefits from a unique position in the credit card market, with a customer base that skews toward high-income households and frequent travelers who tend to spend more per transaction than the broader population. The company’s mix of premium rewards, travel perks, and exclusive experiences helps encourage both loyalty and higher spending, even amid rising costs or fee increases.
The fourth-quarter results also highlight broader trends in consumer behavior, including robust demand for travel and dining experiences as people continue to prioritize lifestyle and discretionary spending.
By appealing to both established high-net-worth cardholders and younger demographics eager for status and rewards, American Express appears poised to maintain momentum heading into 2026, even as economic conditions evolve.
Overall, the combination of strong cardmember engagement, strategic premium offerings, and continued growth among younger customers contributed to a quarter of solid earnings and market confidence, reinforcing American Express’s position as a leader in the premium credit card sector.
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