American Express Q2 Earnings Surge on Record Card Spending and Fees

American Express posted a 17% year-over-year increase in Q2 earnings per share, reaching $4.08, while revenue climbed 9% to a record $17.9 billion. The growth was driven by a 7% rise in card member spending and a 20% surge in net card fees, adjusted for foreign exchange.

Despite reaffirming full-year guidance, shares fell 2.5% as investors weighed rising operating expenses and heightened competition in the premium credit card market. Travel spending growth slowed, but new card acquisitions remained robust at 3.1 million.

The results underscore the resilience of consumer spending, particularly in premium services, even as macroeconomic uncertainties persist. American Express's fee-based revenue model continues to outperform, though market reaction suggests concerns about cost pressures.