American Express Exceeds Expectations With Strong Q4 Results

American Express reported fourth-quarter financial results that largely met market expectations. The company achieved earnings per share (EPS) of $3.04, slightly surpassing the consensus estimate, while total revenue aligned with analyst projections at $17.18 billion. Notably, billed business reached a record high of $408.4 billion, reflecting a robust 8% year-over-year increase.

Building on this momentum, American Express delivered a record year in 2024. Total revenue surged 10% (on a foreign exchange-adjusted basis) to $65.9 billion, resulting in a record net income of $10.1 billion. This translated to a 25% increase in EPS to $14.01, underscoring the company’s strong growth trajectory.

Key revenue drivers included robust performance across key segments. US Consumer Services led the way with 12% year-over-year growth, followed by Commercial Services at 8%. International card services also contributed significantly, with an 11% increase.
This growth was fueled by strong cardholder activity.

Annual card member spending and net card fee revenues reached record levels, driven by 13 million new card acquisitions throughout the year. This expansion was complemented by a strategic expansion of the company’s global merchant network.

Reflecting this strong performance, American Express shares have appreciated significantly, trading at all-time highs. The company’s positive outlook is shared by analysts, with many maintaining “Buy” ratings on the stock.

Looking ahead, American Express expects continued growth in 2025, projecting EPS in the range of $15 to $15.50 and revenue growth between 8% and 10%. These projections are largely in line with analyst expectations.

To further enhance shareholder value, American Express plans to increase its dividend payouts by 17%, demonstrating confidence in its sustained financial strength and commitment to returning value to investors.