American Express (AXP) Re-Affirms 2025 Earnings Guidance with Revenue Growth of 8% to 10%

American Express (AXP) reaffirmed its earnings guidance for 2025, projecting an 8% to 10% revenue growth and EPS between $15.00 and $15.50. Despite reporting record card spending for Q2 2025 with $4.08 earnings per share and a 9% revenue increase, the stock still experienced a 25% rise over the past quarter. This increase occurred amid strong corporate results and economic data, which supported market-wide optimism despite some volatility. Moreover, the company's inclusion in key indices and recent product introductions likely added positive weight to its share price movement relative to the broader market trends.

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The affirmation of American Express's earnings guidance and recent record card spending could bolster investor confidence, aligning with the company's longer-term total return performance of +247.57% over the past five years. This impressive return showcases resilience, significantly outpacing recent industry performance despite some short-term share price volatility. However, when looking at the past year, AXP underperformed the US Consumer Finance industry, which saw returns of over 30% compared to the US market's return of 14.1%.

In light of the reaffirmed earnings guidance and projected revenue and EPS growth, expectations for future revenue and earnings might remain robust, but challenges highlighted in the narrative, such as potential deceleration in airline spending and macroeconomic uncertainties, could still pose growth hurdles. These factors underscore the company's need to maintain strong customer spending and effective cost control to achieve its targets. Given the current share price of US$315.35 and the analyst price target of US$318.02, the market's expectations seem closely aligned, suggesting limited room for immediate upward movement.

Gain insights into American Express' past trends and performance with our report on the company's historical track record.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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