American Express (NYSE: AXP)

American Express reported strong financial results for Q1 2025, with revenue reaching $17.0 billion, up 7% year-over-year (8% FX-adjusted). When excluding the leap year impact, FX-adjusted revenue growth was 9%. Net income increased 6% to $2.6 billion, while diluted EPS grew 9% to $3.64, benefiting from the company's ongoing share repurchase program, which reduced average diluted common shares outstanding by 3% year-over-year.

The company's revenue growth was primarily driven by three key factors: higher net interest income supported by growth in revolving loan balances, increased Card Member spending, and continued strong card fee growth. Card Member spending continued to grow at a solid pace, up 6% year-over-year, or 7% when excluding the leap year impact. Consolidated expenses increased 10% to $12.5 billion, primarily due to higher variable customer engagement costs, the absence of a prior year benefit related to Membership Rewards, and increased usage of travel-related benefits.

Consolidated provisions for credit losses were $1.2 billion, down from $1.3 billion a year ago. The decrease reflected a modest net reserve release during the quarter compared to a net reserve build a year ago, partially offset by higher net write-offs driven by growth in Total loans and Card Member receivables. The first-quarter net write-off rate remained stable at 2.1%, flat year-over-year, demonstrating the company's strong credit performance and the resilience of its premium customer base.

Based on the steady spend and credit trends seen to date and the current economic outlook, American Express is maintaining its full-year guidance for revenue growth of 8% to 10% and EPS of $15.00 to $15.50, in line with the ranges provided in January. The Q1 results show the company is on track to meet its full-year targets, with FX-adjusted revenue growth of 8% aligning with the lower end of the full-year guidance range.