Credit card giant American Express (AXP) has reported strong financial results for this year’s first quarter as its largely affluent cardholders continue spending at a brisk pace.
The New York City-based company reported earnings per share (EPS) of $3.64 U.S., which was ahead of the $3.47 U.S. expected on Wall Street. Profit was up 6% from a year ago.
Revenue in the January through March quarter totaled $17 billion U.S., which narrowly topped sales of $16.94 billion U.S. that was the consensus expectation of analysts.
In its earnings statement, American Express said that cardmember spending, credit performance, and demand “continued to be strong” during Q1.
American Express tends to benefit from the fact that its credit card members are more affluent and wealthier and can withstand an economic downturn.
The company also issues a lot of corporate credit cards whose balances are paid in full each month by companies rather than individuals.
Despite signs that the U.S. economy is weakening, American Express maintained its full-year 2025 guidance for both revenue and earnings.
In January of this year, the credit card company said it expects 2025 revenue growth of 8% to 10% and earnings of $15 U.S. to $15.50 U.S. per share.
The stock of American Express has declined 15% this year to trade at $252.92 U.S. per share.