Published by Global Banking & Finance Review®
Posted on January 24, 2025
2 min readLast updated: January 27, 2026
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AmEx's Q4 revenue exceeded forecasts due to strong holiday spending, particularly in travel. The company anticipates solid growth into 2025.
By Jaiveer Shekhawat and Arasu Kannagi Basil
(Reuters) -American Express beat expectations for fourth-quarter revenue on Friday, as more consumers swiped its cards during the holiday season for travel and online shopping.
Travel and entertainment spend was the strongest area, CFO Christophe Le Caillec told Reuters, adding that airline travel, in particular, did really well.
Billed business, a measure of spending on AmEx cards, rose 8% to $408.4 billion in the quarter. Revenue increased 9% to $17.18 billion, beating expectations of $17.16 billion, according to estimates compiled by LSEG.
William Blair analysts said the growth in billings was encouraging as it would be a key factor for AmEx to meet its "aspirational target" of at least 10% revenue growth.
CEO Stephen Squeri told analysts that fourth-quarter spending numbers were stronger than expected, with momentum sustaining in the first three weeks of January.
AmEx also saw improvement in small-business sentiment, resulting in stronger spending in the quarter, Squeri said.
On a per-share basis, AmEx earned $3.04, in line with expectations.
HIGH INVESTOR EXPECTATIONS
AmEx forecast 2025 earnings per share between $15 and $15.50, compared with estimates of $15.23. It expects revenue growth between 8% and 10%, compared with expectations of 8.1%.
Edward Jones analyst Kyle Sanders said the outlook was solid, but there could be some disappointment with the revenue growth forecast given that investor expectations were high.
"If 2025 plays out the way the fourth quarter does, they will do more than 10% revenue growth. But if there's a hiccup or there's tariffs or something like that, they'll be below 10%," Sanders said.
AmEx shares fell 2.7% in early trading. Zacks Investment Management client portfolio manager Brian Mulberry said the reaction was more to do with investors expecting very strong results, given the recent run-up in the stock.
Still, Mulberry said "strong growth expectations, combined with a solid balance sheet and growing optimism in the small-business community, make AmEx attractive."
(Reporting by Jaiveer Singh Shekhawat, Arasu Kannagi Basil and Niket Nishant in Bengaluru; Editing by Maju Samuel)
American Express reported a fourth-quarter revenue of $17.18 billion, surpassing expectations of $17.16 billion.
Billed business for American Express rose 8% to $408.4 billion during the quarter.
American Express forecasts earnings per share between $15 and $15.50 for 2025, compared to estimates of $15.23.
The strong performance was driven by increased consumer spending on travel and entertainment, particularly airline travel.
AmEx shares fell 2.7% in early trading, as investors had high expectations for the results.
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