Money Talks at American Express As Affluent Spenders Drive Record Quarter

In a world where recession fears dominate headlines, affluent customers didn’t get the memo. Often considered a bellwether for wealthy spenders, American ExpressAXP

reported Q2 earnings that not only beat expectations but smashed records. As nagging inflation impacts the common folk, the finance powerhouse touts its “largest investment ever.”

• AXP
  posted revenue of $17.9B and adjusted EPS of $4.08, both beating estimates polled by LSEG — representing a 9% and 17% surge from last year, respectively.
• Cardmember spending hit new highs amid a 7% climb from last year, and Amex reaffirmed its 8% to 10% sales growth outlook — signaling confidence in sustained swiping, per Barron’s.

Platinum tactics: As the fractured economy divides everything from homebuilding to travel and clothing,AXP

witnessed spending increases of 10%, 40%, and 12% for its millennial, Gen Z, and international roster, respectively. With CEO Steve Squeri declaring “consumers will pay for value,” the charge card titan is doling out a Platinum refresh with more perks (and fees). Despite the optimism, the entity’s shares tumbled nearly 3% — a reminder that not every perk can get investors on board.