Investors questioned American Express executives about slowing net card additions, rising growth costs, and signs of softness in the middle market. Despite reporting record results for 2025 and forecasting near-double-digit growth for the upcoming year, concerns were raised during the earnings call about the sustainability of the company’s strategy.
Analysts focused on whether the shift towards premium fee-paying products could impact future momentum, leading to a 3.5% decline in American Express stock on Friday. CEO Stephen Squeri defended the company’s focus on revenue rather than card counts, emphasizing that revenue and return targets are being met.
American Express reported a 10% increase in revenue to a record $72 billion for 2025, with earnings per share up 15%. However, skepticism remains among investors regarding the growing costs associated with attracting affluent customers through rewards, marketing, and benefits. The company expects revenue growth of 9-10% for 2026, with plans to increase the quarterly dividend by 16%.
Chief Financial Officer Christophe Le Caillec highlighted improving economics as the portfolio becomes more premium, with annual card fee revenue reaching $10 billion. Despite concerns about potential engagement decline and weak spending in the middle market, American Express remains optimistic about the strength of its premium customer base and the flexibility of its business model.
