American Express (AXP) reported a strong third quarter, with record revenue of $20 billion, up 9% from the same period last year. The company's GAAP earnings per share (EPS) jumped 31% to $5.42, while adjusted EPS rose 13% to $4.68. Management raised its full-year EPS guidance to $18.30-$18.60 reported and $17.60-$17.90 adjusted, reflecting confidence in the company's growth momentum.
The quarter was marked by notable one-time items, including a $1.11-per-share gain from Global Business Travel Group and a $0.37-per-share restructuring charge. Despite these, adjusted EPS showed solid 13% year-over-year growth, highlighting strong underlying profitability. Customer spending remained robust, with total balances climbing 8% and net interest income growing 10%. Write-offs increased only 3%, indicating resilient credit performance.
U.S. consumer spending rose 9.4%, the third-strongest quarterly increase in three years. Travel and entertainment spending climbed 10%, with airline spend up 13% and restaurant spend up 9%. Net card fees grew 17% on a currency-adjusted basis, accelerating from 15% in the previous quarter. International spend increased 11%, marking the 22nd consecutive quarter of double-digit growth.
American Express added 3.1 million new cards in the quarter, with 76% of these new accounts carrying annual fees. The company emphasized the stability of its premium customer base, with delinquencies holding steady at around 1.2%-1.3%. Management also highlighted aggressive investments in AI and agentic commerce, aiming to enhance customer service and personalization.