The news: American Express’ Q4 2025 total revenues hit $18.98 billion, up 10% YoY, per its earnings release.

Despite strong cardholder spend, shareholders sent Amex’s stock prices down after the company failed to clear profit estimates, as marketing spend on the Platinum refresh dragged on profit, per Bloomberg. 

A look at the Amex consumer: Amex’s focus on the premium market paid off as wealthy spenders kept spending strong through the holidays.

• Total loans and card member receivables were up 7%.
• Delinquencies remained flat on the year at 1.3%.
• Restaurant billed business was up 9% YoY.
• Lodging spend increased 5% YoY.
• Airline spend rose 3% YoY.
• And other expenditures spiked 11% YoY.

Pushes to capture millennial and Gen Z cardholders also proved successful in light of the Platinum refresh: 65% of new global account openings came from the younger cohorts. 

The issuer also grew its international consumer base, with volume growth up 17% YoY. 

However, the marketing spend to reach and acquire these cardholders was steep—Amex poured $6.3 billion in marketing over the last year, tamping down profits. While the surge in growth for annual fees should outweigh the initial drag on performance, Amex will need to retain these customers year over year to offset these costs in the long term.

Inside the earnings call: CEO Stephan Squeri emphasized maximizing the value of the Platinum brand amid competing offerings.

• Squeri argued that Amex can outcompete premium rivals like Citi, Chase, and Capital One on superb customer service.
• US consumers were not deterred by the Platinum refresh’s $895 annual fee, with US fee-paying Amex cardholders up 8% YoY and net card fees up 18% YoY, for a total of $10 billion.

Squeri identified noncard services as a key area for consumer growth: Only 10% of US cardholders hold high-yield savings accounts with Amex.

Implications for premium payment providers: Amex took a gamble with a deep investment in its premium perks, marketing, and record card fees. 

While securing Gen Z and millennial cardholders is necessary for the health of card portfolios, issuers will now have to focus on maintaining their loyalty to justify increases in yearly fees over the long run. Tailoring rewards to these aspirational young adults will be key to the fee strategy’s profitability.