American Express Defies Wall Street with Travel and Entertainment Surge

American Express surpasses Wall Street's profit expectations due to continued spending by its affluent clientele on travel and entertainment. Despite economic uncertainties under the new U.S. administration, AmEx maintains its 2025 profit and revenue forecasts, although acknowledging concerns over economic trajectories affecting projections.

American Express has exceeded Wall Street's first-quarter profit predictions, with affluent customers continuing to spend robustly on travel and entertainment. Despite concerns over economic slowdowns, the credit card company is sticking to its 2025 profit and revenue guidance, maintaining projections even amid trade policy uncertainties under the new U.S. administration.

Revenue is projected to grow between 8% to 10% in 2025, with profits ranging from $15 to $15.50 per share. AmEx CEO Christophe Le Caillec remarked on the importance of the economic climate to these forecasts, noting the unusual inclusion due to lower economic visibility.

With a longstanding focus on high-spending customers, AmEx remains somewhat insulated from broader economic downturns, leveraging reward programs and perks. The company's first-quarter results revealed a 6% profit increase to $2.58 billion, exceeding Wall Street's per-share expectations, despite slight stock underperformance influenced by tariff-related market shifts.

(With inputs from agencies.)