Wealthy millennial, Gen Z Platinum members drive American Express to record revenue: ‘very comfortable paying for its exceptional value’

The company achieved net income of $2.9 billion, reflecting a 16% increase over the previous year. Earnings per share rose 19% to $4.14, beating analysts’ estimates of $3.99. Total revenue, net of interest expense, rose 11% to an all-time high of $18.43 billion, again exceeding the expected figure of $18.05 billion. Shares jumped 7%.

American Express attributed its success largely to strong card spending across categories and deepening participation among younger affluent groups. Millennials and Gen Z now account for 36% of all cardmember spending – on par with Generation X – and they make 25% more transactions on average than older customers. The group’s appetite for premium products has enhanced the company’s reputation as the brand of choice for upscale consumers looking for benefits and quality experiences.

Brands like American Express and Delta are benefiting from the broader shift in the U.S. economy, as premium products and experiences coincide with a greater concentration of wealth. Moody’s Analytics found that in the second quarter of 2025, the top 10% of households accounted for nearly 50% of total consumer spending — and U.S. consumer spending accounts for two-thirds of total economic activity.

This bifurcation is visible throughout the economy, with Federal Reserve Governor Chris Waller telling CNBC earlier this month that CEOs were sharing stories of a disparate impact of tariffs, with premium producers passing on price increases directly to wealthy, “prince-insensitive” consumers.

“It’s about a 40% pass,” Waller estimated, describing the “double” effect on the economy. By contrast, he sees no inflation at all, anecdotally, in consumer prices for the bottom half of the income distribution, because those customers would “walk out the door” if prices rose too high.

Platinum update ignites standard engagement

“The big news this quarter was the launch of our refreshed U.S. Platinum Card and Platinum Business Card, further strengthening our leadership in the premium space. I’m very pleased to say that initial customer demand and engagement is exceeding our expectations,” Squirre told analysts on the earnings call.

He described it as the strongest rollout the card has ever seen, with take-ups of the new Platinum account doubling compared to pre-update levels, and an influx of more than 500,000 applications for the redesigned Mira card in just three weeks.

There have been a lot of new launches, Squire explained, calling it a “proven strategy to regularly update our products to drive customer engagement and growth.” American Express has made more than 200 updates across its portfolio globally since 2019, according to the CEO, and this was the third US Platinum update in the past decade.

The 2025 update emphasized lifestyle and digital perks designed to appeal to young, high-income consumers, from higher travel rewards to new benefits in health, entertainment and delivery services. CFO Christophe Le Caillac noted that spending among Platinum cardholders outside the United States rose by 24%, indicating the brand’s global expansion among young professionals. He added that 70% of new accounts acquired globally now come from premium, paid products

Given the strong momentum, Amex raised its full-year 2025 outlook and now sees revenue growth of 9% to 10% and earnings per share of $15.20 to $15.50, citing flat spending trends among affluent consumers.

Over the past three years, the company has returned about 70% of its profits to investors. This year, American Express returned $2.9 billion to shareholders through $2.3 billion in stock buybacks and $600 million in dividends.

Millennium Corner

Squire described Millennials and Generation Z as key to the future of American Express, saying, “Several years ago, we made a conscious decision to expand our opportunity for premium products so we could attract new generations and grow with them as their needs change.”

Squire then pulled back the curtain a bit on what the spending habits of wealthy millennials and Generation Z say about their habits and preferences. When the Platinum Card was launched more than 40 years ago, it was “initially designed for affluent travelers and frequent flyers”, but it has evolved into “the premium lifestyle card it is today, with a wide range of benefits and experiences that appeal widely across generations”.

Referring to the latest update in 2021, after the pandemic ended, Squire said they “learned that our cardmembers, especially younger groups, love the benefits we’ve added in categories like digital entertainment, health, and delivery services, as well as our travel offerings.” Record bookings through Amex Travel were highlighted with the latest update and launch of a new all-in-one travel app, introduced earlier in September.

American Express’ results are consistent with those from Delta Air Lines a week earlier. The most profitable airline in the US has confirmed to analysts that its premium offering is set to generate more revenue than the main cabin in 2026, a year ahead of schedule. Both Delta Chairman Glenn Hauenstein and CEO Ed Bastian discussed the “turn” in prime cabin demand, and Hauenstein seemed almost surprised: “The premium products used to be loss-making, and now they are the higher-margin products.”