American Express (AXP) kicked off Q1 2025 with a strong performance, marked by healthy growth across key financial and operational metrics. Total revenues net of interest expense rose 7% year-over-year to $16.97 billion (or 8% FX-adjusted), driven by increased Card Member spending and sustained demand for premium products. Net income climbed 6% to $2.58 billion, while diluted earnings per share grew 9% to $3.64, reflecting both revenue momentum and operational efficiency.

Customer spending remained robust, with billed business reaching $387.4 billion, up 6% year-over-year, or 7% when adjusting for the leap year impact. The company's return on average equity stood at an impressive 33.6%, underscoring its ability to generate strong shareholder value. Credit performance continued to be a highlight, with a net write-off rate of 2.1%, unchanged from the prior year, and provisions for credit losses declined to $1.15 billion, down from $1.27 billion—a positive shift driven by a modest reserve release.

On the expense side, total costs increased 10% to $12.49 billion, primarily due to higher customer engagement investments such as rewards and travel benefits, along with a discrete prior-year benefit that created a tough comparison. Marketing spend held steady year-over-year, signaling a balanced approach to growth and cost discipline.

Across business segments, U.S. Consumer Services led with $8.25 billion in revenue (up 10%) and a 7% increase in billed business, supported by strong card acquisition and a 21% rise in net card fees—with 70% of new cards on fee-based products. Commercial Services delivered $4.04 billion in revenue, up 7%, though pretax income dipped slightly. International Card Services posted standout results with revenues up 8% to $2.94 billion and pretax income surging 51%, driven by broad-based growth and strong FX-adjusted performance. Global Merchant and Network Services saw revenues decline 3% to $1.82 billion, though network volumes increased 5%, with expense controls helping offset revenue softness.

Other key indicators included customer deposits rising to $146.4 billion (up 9%) and cash holdings of $52.5 billion. The company returned $1.3 billion to shareholders, split between $0.7 billion in buybacks and $0.6 billion in dividends.

Looking ahead, management reaffirmed its full-year guidance for 8–10% revenue growth and EPS between $15.00 and $15.50, citing the resilience of its premium customer base and the durability of its business model. With credit quality stable, expenses in check, and fee-based product momentum strong, American Express is well-positioned to navigate the year with confidence.