American Express has delivered another powerful demonstration of its market strength, with third-quarter results that surpassed all projections and propelled the company’s stock to record-breaking territory. The financial services giant continues to defy expectations, leaving investors to examine the drivers behind this exceptional performance and question how long this upward trajectory can be maintained.
Exceeding Projections with Substantial Gains
The company’s latest financial report reveals impressive growth across key metrics. Revenue climbed 11 percent to reach $18.43 billion, while adjusted earnings per share saw an even more substantial increase of 19 percent, landing at $4.14. Both figures comfortably exceeded the estimates put forth by market analysts, underscoring the company’s robust operational performance.
At the core of this success lies American Express’s effective strategy: driving higher spending among cardmembers while simultaneously increasing fee-based revenue. This dual approach has generated significant momentum for the financial services provider.
Premium Card Products Fuel Expansion
The company’s refreshed Platinum card offerings have emerged as particularly strong growth drivers. Stephen Squeri, Chief Executive Officer of American Express, expressed clear satisfaction with the performance, noting that “demand for our updated US Consumer and Business Platinum Card has exceeded our expectations.” The relaunch has proven remarkably successful, with new customer acquisitions for the premium card products doubling compared to pre-relaunch periods.
The company’s deliberate focus on serving affluent customers appears to be paying substantial dividends. While numerous financial institutions grapple with economic uncertainties, American Express benefits from its wealthier client base that continues to spend readily even during volatile periods.
Should investors sell immediately? Or is it worth buying American Express?
Wall Street Responds with Revised Targets
The outstanding quarterly performance prompted immediate reaction from financial institutions. Multiple major banks substantially increased their price targets for American Express shares in response to the strong results.
Wells Fargo raised its target from $375 to $400, while Truist Securities adjusted its projection upward from $375 to $395. Even typically conservative analysts at Barclays enhanced their expectations, moving from $336 to $355. The lone dissenting voice came from BTIG, which maintained a “Sell” rating despite implementing a minor upward adjustment.
Strategic Diversification and Confident Outlook
Beyond its core credit card operations, American Express is strategically expanding into additional revenue streams. The development of new initiatives like the Amex Ads advertising platform and the RewardPay partnership demonstrates the company’s clever approach to creating profitable business areas beyond traditional payment services.
Management confidence is reflected in the company’s upgraded full-year guidance. American Express has raised its expected revenue growth to 9-10 percent and increased its earnings per share forecast to a range between $15.20 and $15.50.
From a technical perspective, the stock’s current trading position well above its key moving averages indicates a bullish trend. The central question facing investors now centers on sustainability: How long can American Express maintain this record-setting pace? The earliest indications may not emerge until the release of quarterly figures in early 2026. For the present, shareholders appear content to enjoy the continued record-breaking performance.
Ad
American Express Stock: Buy or Sell?! New American Express Analysis from February 7 delivers the answer:
The latest American Express figures speak for themselves: Urgent action needed for American Express investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
American Express: Buy or sell? Read more here...
