What's Happening?
American Express is reporting robust holiday spending, with U.S. retail spending on its network rising 9% around Thanksgiving week and Platinum card spending up 13%. The company has raised the lower end of
its 2025 outlook, citing resilient spending by higher-income customers. American Express is also focusing on its premium card strategy, having refreshed its U.S. Platinum Cards with additional perks and a higher annual fee. The company plans to host its Q4 and full-year 2025 earnings call on January 30, 2026. Additionally, American Express declared a $0.82 quarterly dividend, payable in February 2026.
Why It's Important?
The strong holiday spending figures underscore American Express's successful positioning in the premium market segment, which is crucial for its revenue growth and competitive edge. The company's ability to maintain high spending levels among affluent customers supports its strategy of leveraging premium pricing and benefits. However, the increased annual fee for Platinum Cards poses a risk if it deters new customer acquisition or retention. The upcoming earnings report will provide further insights into the company's financial health and strategic direction. The declared dividend reflects confidence in ongoing earnings power and shareholder returns.
What's Next?
American Express will focus on sustaining its premium strategy and managing credit quality as it enters 2026. The company's Q4 earnings report will be a key event, providing updates on spending trends, credit performance, and strategic initiatives. Investors will be particularly interested in the impact of the Platinum Card refresh and any changes in consumer behavior. Additionally, regulatory developments, such as the recent fine by France's CNIL for cookie compliance issues, will require attention to ensure compliance and mitigate potential risks.
