American Express Co (NYSE:AXP) stock dropped on Friday after it reported mixed fourth-quarter 2025 results.
The company reported quarterly revenue (net of interest expense) growth of 10% year-over-year to $18.98 billion, topping the analyst consensus estimate of $18.92 billion.
The revenue increase was primarily driven by higher Card Member spending, increased net interest income supported by growth in revolving loan balances, and strong card fee growth.
Adjusted EPS coming in at $3.53, missed the analyst consensus estimate of $3.54 due to a 10% jump in expenses, mainly due to the “Platinum refresh” marketing costs and higher customer engagement fees.
Segments
Card Member spending, or Billed Business, rose 9% year-over-year to $445.1 billion.
U.S. Consumer Services revenue climbed 11.0% to $9.16 billion, while Commercial Services revenue increased 6.7% to $4.4 billion.
International Card Services saw a 16.9% jump to $3.5 billion, and Global Merchant and Network Services revenue grew 7.7% to $2.04 billion.
Net card fees surged 17% year-over-year to $2.63 billion.
Total expenses, however, increased by 10% year-over-year to $14.48 billion, driven by higher variable customer engagement costs due to increased …