AXP projects sustained double-digit revenue growth and mid-teens EPS expansion, driven by younger demographics and strategic investments.
American Express expects revenue to grow at a 10% annual rate over the long term, with diluted earnings per share rising at a mid-teens pace. The company cites a younger customer base and broader economic trends as key drivers for top- and bottom-line expansion.
In the second quarter, 65% of new consumer card signups globally came from millennials and Gen Z, who are spending at a faster rate than older generations. These cohorts, with decades of earning potential ahead, are expected to boost lifetime value for the company.
Management is prioritizing reinvestment over short-term profits, with expenses outpacing net revenue growth in Q2. CEO Steve Squeri emphasized balancing share buybacks with growth initiatives, including rewards and international expansion.