American Express Q4 2024 Earnings: Media Analysis
American Express (AMEX, NYSE: AXP) closed out 2024 with Q4 results that met or modestly exceeded consensus estimates, sparking mixed reactions in the press. The company reported revenue of around $17.2 billion in Q4 and earnings per share of $3.04, which was largely in line with expectations (American Express, 2024). The solid increase in cardmember spending, particularly in travel and luxury retail, drove a revenue rise of 9% year-over-year (Reuters, 2025). Though many outlets praised the steady growth, the stock dipped slightly on release day as investors digested ongoing spending trends, cost pressures, and a 2025 revenue outlook that some viewed as conservative.
Robust holiday-season spending boosted Amex’s Q4 results, especially among affluent customers. Travel and dining activity surged as pandemic-era restrictions eased, and Amex’s affluent customer base didn’t shy away from year-end splurges. Airline spending jumped 13% in Q4 (Scotto di Perta, 2025), reflecting robust demand. Management highlighted millennial and Gen Z consumers as the main growth drivers. Spending by these groups is growing at double-digit rates compared to older generation consumers, helping total billable business to grow by about 8% over the previous year (Reuters, 2025). As seen, retail spending on travel and luxury goods remains strong despite fears of rising inflation and interest rates.
American Express’ record-high annual revenues, approximately $65.9 billion in 2024, and record levels of annual Card Member spending have led the media to praise Amex’s ability to continue to attract big spenders and deliver solid growth in a slowing economy (American Express, 2024). American Express is positioned with an affluent customer base and a premium brand. New card acquisitions topped expectations, with fee-based products such as Platinum and Gold cards in high demand. This success led American Express to raise its dividend by 17% (Scotto di Perta, 2025), demonstrating management’s confidence in the sustainability of the business.
On the other hand, some negative sentiments focused on the “in line” nature of the results and a guidance that failed to wow Wall Street. Bloomberg pointed out that Amex’s $2.17 billion Q4 profit (or $3.04 per share) slightly missed estimates, a subtle deviation that, combined with rising costs, tempered the excitement (DDG, 2025). American Express has been investing heavily in rewards and marketing to attract younger subscribers, which could put pressure on margins. However, Express executives say they can meet their profitability targets without accelerating revenue growth thanks to expense discipline.
Amex’s outlook for 2025 – revenue growth of 8–10% and EPS of $15.00–$15.50 – was solid but not much above consensus forecasts (WSJ, 2025). A neutral or in-line outlook becomes less attractive after American Express shares have risen strongly for most of 2024. Analyst Kyle Sanders noted that Amex’s 8–10% revenue growth guidance, while respectable, might underwhelm those hoping for a continuation of double-digit increases. He pointed out that if 2025 unfolds as strongly as Q4 did, Amex could exceed 10% growth, “but if there’s a hiccup…they’ll be below 10%,” underscoring the narrow margin for error (Reuters, 2025). As seen, Amex’s valuation already bakes in a lot of good news, so execution needs to remain flawless. Sanders also said, “the outlook was solid, but there could be some disappointment with the revenue growth forecast given that investor expectations were high”(Reuters, 2025). For many people, the outlook for 2025 is healthy but leaves less room for upside surprises. The Wall Street Journal and Barron’s both highlighted that investors had very high expectations and set a high bar, so merely meeting forecasts led to disappointment (WSJ, 2025; Scotto di Perta, 2025). This negative sentiment emphasized the thought that good was not good enough for Amex’s eager investors.
Overall, the media’s view of American Express’s Q4 2024 earnings is largely positive, highlighting strong holiday spending, high-value customer engagement, and solid revenue performance. However, concerns remain about cost pressures and investor expectations. While American Express’ forecast does not exceed the highest expectations, it signals steady growth through 2025. Most outlets believe that American Express can remain on a strong footing as long as it effectively manages credit risk, rewards spending, and the changing habits of its affluent cardholder base.
*This is a class assignment, not affiliated with the brand itself.