AmEx’s wealthy cardholders simply don’t care about tariffs. Their Q1 2025 numbers tell the story – revenue up 7%, stable write-offs at 2.1%, and premium customers swiping away like it’s nobody’s business. Gen Z and Millennial big spenders are jumping on board too, boosting international transactions by 22%. Sure, small businesses might feel the pinch, but AmEx’s elite crowd? They’re too busy planning their next luxury purchase to notice the economic drama.
While economic storm clouds gather and trade tensions spark fresh market jitters, American Express’s affluent cardmember base keeps on spending like it’s nobody’s business. The company’s Q1 2025 numbers tell the tale: revenue up 7%, card spending increased 6%, and write-offs holding steady at 2.1%. Not too shabby for supposedly troubled times. The company’s commitment to consistent growth shows in their pre-tax income of $1.7 billion from U.S. Consumer Services.
Turns out those fancy AmEx cardholders just don’t scare easily. When April’s tariff announcements sent the company’s stock tumbling 8%, their premium customers barely flinched. Maybe that’s because AmEx’s cardmember base has gotten even more exclusive since 2019, with higher FICO scores across the board. These aren’t your average coupon-clipping consumers – they’re the folks who wouldn’t know a bargain bin if they fell into one. Their investment savvy shows through their focus on long-term holdings rather than reactive market responses.
When the going gets tough, AmEx’s elite cardholders keep spending. These aren’t bargain hunters – they’re premium customers with platinum preferences.
The young guns aren’t holding back either. Gen Z and Millennial cardholders cranked up their international transactions by 22% in Q1 2025. And here’s the kicker – they’re actually being responsible about it. These kids prefer paying in full rather than revolving balances. Who knew?
AmEx’s premium revenue model looks pretty genius right now. With roughly 70% of new accounts on fee-paying products, they’re not exactly sweating the small stuff. The company’s forecast of $15.00-$15.50 EPS reflects their confidence in the premium strategy. Wall Street’s taking notice too – analysts are projecting nearly 14% earnings growth for 2025, with an even better outlook for 2026.
Sure, there are some worry spots. Small businesses with thin margins might feel the pinch from those tariffs. But AmEx’s business portfolio leans toward the cream of the crop – companies with enough cushion to weather the storm.
Bottom line? While everyone else wrings their hands over economic uncertainty, AmEx’s affluent customers keep swiping those sleek metal cards. Whether it’s spite spending or just business as usual, one thing’s clear: these cardholders aren’t losing sleep over trade wars. They’re too busy planning their next international shopping spree.
