Known for its premium credit cards and luxury perks, American Express has long been a Wall Street favorite, with total shareholder returns up 81.5% over the past two years amid robust spending by affluent cardholders.
The company reported fourth-quarter earnings Friday morning, posting net income of $2.46 billion, up from $2.17 billion in the same period a year earlier. Earnings rose to $3.53 a share, just below expectations of $3.54, according to LSEG.
While there have been signs of overall slower consumer spending in the past year, American Express has continued to post steady sales growth, supported by strong demand for travel, dining and everyday purchases among its highest-spending customers, analysts say.
American Express has also expanded its reach among younger consumers, with the average age of a new Platinum card member at 33 and a new Gold card member at 29, company executives said during Friday’s fourth-quarter earnings call.
Millennials and Gen Zers account for more than a third of total card spending and tend to transact more frequently than older customers, executives said last quarter.
That strength has held up even after the company announced in September that it would raise the annual fees on its premium Platinum consumer and business cards from $695 to $895, effective at renewal beginning in January. During the company’s third-quarter earnings call, executives said retention rates had remained stable so far.
The company’s resilience is tied to its customer base, which skews wealthier and more creditworthy than average, company executives say. In recent years, that dynamic has played out in what economists often describe as a K-shaped economy, where higher-income households continue to spend even as financial pressure builds elsewhere.
“It truly is a bifurcated economy. We’re lucky to have a much more premium card base,” Stephen Squeri, the company’s CEO, said during the company’s third-quarter earnings call in October. “The health of our consumer is really, really good. They’re spending, they’re engaging with the product, and they’re paying their bills.”
American Express shows steady revenue growth
The company’s shares are down by about 3% so far in 2026 and were trading at $358.50 per share as of Thursday’s market close.
Here’s how much a $1,000 investment in American Express stock would be worth today, based on the company’s closing price as of Jan. 29.
If you invested one year ago
Percentage change: 14.8%Total as of Jan. 29: $1,148
If you invested two years ago
Percentage change: 81.5%Total as of Jan. 29: $1,815
If you invested 5 years ago
Percentage change: 218.9%Total as of Jan. 29: $3,189
If you invested 20 years ago
Percentage change: 624.4%Total as of Jan. 29: $7,244
By comparison, the total return on an S&P 500 index fund, would have been about 87.6% over five years, and 443% over 20 years.
While American Express has performed well for shareholders in recent years, past performance is no guarantee of future results. Financial experts often recommend keeping long-term investments diversified rather than concentrated in a single stock.
That approach is generally seen as a safer way to build long-term wealth, since it spreads risk across the broader stock market instead of relying on individual winners.
And before making any changes to your portfolio, it’s generally recommended to consult with a trusted financial advisor.
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