American Express, known for its premium credit cards and generous perks, has long been a Wall Street favorite, with total shareholder return increasing 81.5% over the past two years on the back of strong spending by wealthy cardholders.
The company announced its fourth quarter results Friday morning, with net income of $2.46 billion, up from $2.17 billion a year earlier. Earnings rose to $3.53 per share, slightly below expectations of $3.54, LSEG said.
Although there have been signs of a slowdown in overall consumer spending over the past year, American Express continues to post steady revenue growth, supported by strong demand for travel, dining and everyday shopping among its highest-spending customers, analysts said.
American Express is also expanding its reach to younger consumers, with the average age of new Platinum Card members being 33 and the average age of new Gold Card members being 29, company executives said on Friday’s fourth-quarter earnings call.
Executives said Millennials and Gen Z accounted for more than a third of total card spending last quarter and tend to transact more frequently than older customers.
The strength continues after the company announced in September that it would raise the annual fee for its Premium Platinum consumer and business cards from $695 to $895, with increases on renewal starting in January. At the company’s third-quarter earnings conference, executives said retention rates have remained stable so far.
Company executives say the company’s resiliency has to do with its customer base, which is wealthier and more creditworthy than average. In recent years, that dynamic has played out in what economists often describe as a “K-shaped economy,” where high-income households continue to spend despite mounting fiscal pressures elsewhere.
“The economy is truly polarized, and we’re fortunate to have a much larger premium card base,” CEO Stephen Squery said on the company’s third-quarter earnings call in October. “Consumer health is very good. Consumers are spending money, engaging with products, and paying their bills.”
American Express shows steady revenue growth
The company’s stock is down about 3% year to date in 2026 and was trading at $358.50 per share at market close on Thursday.
Based on the company’s closing price on January 29, here’s what a $1,000 investment in American Express stock would be worth today:
If you invested 1 year ago
Percent change: 14.8% Total as of January 29: $1,148
If you invested 2 years ago
Percent change: 81.5% Total as of January 29: $1,815
If I had invested 5 years ago
Percent change: 218.9% Total as of January 29: $3,189
If I had invested 20 years ago
Percent change: 624.4% Total as of January 29: $7,244
By comparison, the S&P 500 index fund’s total return is approximately 87.6% over five years and 443% over 20 years.
Although American Express has performed well for shareholders in recent years, past performance is no guarantee of future performance. Financial experts often recommend diversifying your long-term investments instead of concentrating on a single stock.
This approach is generally seen as a safer way to build long-term wealth because it spreads risk across the broader stock market rather than relying on individual winners.
We also recommend that you consult a trusted financial advisor before making any changes to your portfolio.
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