American Express Cardholders Spent $455.8 Billion Last Quarter. Here's What That Means for the Stock.

Spending by American Express (NYSE:AXP) cardholders continues to rage, arsenic the institution conscionable posted its largest 4th of billed concern implicit the past year.

Billed concern measurement was $455.8 cardinal successful the 2nd quarter, up 10% twelvemonth implicit twelvemonth and astir 6.5% from the anterior quarter.

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Despite beardown spending data, American Express banal traded astir 5% lower, arsenic of 12:42 p.m. ET, aft posting second-quarter results.

Amex reported $4.53 net per share, up of Wall Street statement estimates. Revenue of $19.64 cardinal missed statement by astir $50 million.

The institution besides reiterated its full-year EPS usher of $17.30 to $17.90 and past raised its full-year gross usher from up 9% to 10% to conscionable 10% twelvemonth implicit year.

Here's what this each means for the stock.

Image source: Getty Images.

Investors apt had precocious expectations

Of each the recognition paper players, Amex is viewed arsenic best-in-breed.

Not lone does the institution run a closed-loop outgo strategy that generates beardown yearly recurring interest income, but the institution besides has the highest-quality cardholders from a recognition perspective.

Amex's paper basal caters to a higher-net-worth colonisation that tends to beryllium much resilient done the economical cycle. The sell-off tin apt beryllium attributed to precocious expectations entering the quarter.

"Overall, the 4th was marked by a top-line shortfall," Evercore ISI expert John Pancari wrote successful a probe enactment earlier connected July 24.

Expenses successful the 4th besides jumped 12% twelvemonth implicit twelvemonth and 4.4% from the anterior quarter, which could besides beryllium pressuring shares.

Management attributed the step-up successful expenses to investments made to refresh its U.S. platinum paper offerings, successful which the institution continues to triumph caller customers.

Amex added 3 cardinal caller paper members successful the 2nd quarter, astir successful enactment with what it has done implicit the past 5 quarters.

"Retention rates stay precise precocious and we proceed to pull a ample fig of precocious recognition worthy customers with 65% of caller user accounts coming from Millennials and Gen Zs," Amex's CEO Stephen Squeri said connected the company's net call.

Meanwhile, the institution earlier this twelvemonth raised the subscription interest connected its platinum paper from $695 per twelvemonth to $895.

Is the banal a buy?

American Express has retreated from all-time highs made astatine the extremity of 2025 and is present down astir 13.3% this year.