American Express (NYSE: AXP), better known as AmEx, posted a 24.6% gain in 2025. That move helped financial stocks reclaim ground in the Dow Jones Industrial Average (DJIA) after years of dominance by tech stocks. The broader Dow Jones rose by roughly 13% for the year and closed at 48,063 on December 31, marking a strong but uneven performance. Caterpillar and Goldman Sachs led, yet AmEx delivered steady results tied to real spending.
This performance stands out from our earlier piece on AmEx’s mid-year ascent, which tracked an 11% gain through summer 2025. Here, the focus stays on how AmEx powered financial leadership in 2025 with solid revenue growth, premium cards, and betting early on younger spenders, plus record card fees growth.
AmEx’s 24.6% 2025 Surge: Driven by Real Revenue and EPS Growth
AmEx closed 2025 with full-year revenue of $72.2 billion, up 10% from the prior year. Net income hit $10.8 billion, rising 7% from 2024. Earnings per share (EPS) reached $15.38, up 15% adjusted, marking three straight years of mid-teens EPS growth. These figures came from premium card fees, travel, dining, and loyal customers who kept spending.
The stock climbed steadily despite a volatile year. Tariffs, a brief government shutdown, and two Fed rate cuts tested the market. AmEx held firm. Its closed-loop network lets it capture fees directly, unlike rivals. That edge mattered when consumer spending was split between affluent splurgers and everyone else cutting back.
Premium Cards + Gen Z/Millennials Power AmEx’s 2025 Breakout
AmEx bet on millennials and Gen Z early. By late 2025, spending on their cards topped Gen X for the first time in the U.S. consumer business. Billed business rose 9% in Q4 alone to $445.1 billion. Travel, restaurants, retail, and luxury drove the jump.
AmEx Chief Financial Officer Christophe Le Caillec told Reuters that the “Spend that Gen Z and millennials have on their American Express cards is now bigger than Gen X.” He added the company saw “no discontinuity” ahead. This shift explains why AmEx beat Visa’s 11% and Mastercard’s 8.4% gains in 2025.
Record Card Fees: 30 Quarters of Double-Digit Growth
Net card fees grew 18% in 2025 and hit a record $10 billion. That marks 30 consecutive quarters of double-digit growth, a streak few financials can match.
CEO Stephen Squeri said: “Card member spending was strong throughout the year.”
Luxury retail spending rose 15% in Q4. Restaurant spending grew 9%. International spend climbed 12%. Past-due rates held steady at 1.3%. Over 60% of new card acquisitions came from millennials and Gen Z.
Q4 Beat + Strong 2026 Guidance: Proving AmEx Resilience
On January 30, 2026, AmEx reported Q4 revenue of $18.98 billion, up 10% and beating estimates. EPS came in at $3.53, missing by a penny. Expenses rose 10% to $14.5 billion, partly from card upgrades. Shares dipped 2% that morning.
Guidance for 2026 landed stronger than expected: EPS between $17.30 and $17.90, revenue growth of 9% to 10%. Analysts had penciled in $17.41 EPS. The message was clear: affluent customers kept spending through holidays and into the new year.
Buffett’s Berkshire Closes In: AmEx Set to Top Apple as Top Holding
Warren Buffett’s Berkshire Hathaway has held AmEx since the 1960s. By late January 2026, AmEx closed within $8.4 billion of overtaking Apple as Berkshire’s top equity position. AmEx stock rose 106% over the prior 2.5 years versus Apple’s 35%. Berkshire owns 22% of AmEx shares, boosted by the company’s own buybacks.
That vote of confidence from the Oracle of Omaha underscored AmEx’s durable model.
2026 Reality: 20% Dip, Dividend Boost, Stadium Deals & Buyback
At the time of writing, American Express trades near $296, down roughly 20% year-to-date (YTD) after an all-time high of $387.49 on December 12, 2025.
Twenty-one analysts out of twenty-nine rate AmEx a Strong Buy with a consensus one-year target of $383.76, per TradingView. BTIG trimmed to $285; Bank of America (BofA) holds Buy near $381.
Positive moves continue. On March 2, the board authorized a 16% dividend increase to $0.95. On March 4, AmEx announced new stadium partnerships with MetLife Stadium, the New York Giants, Jets, Atlanta Falcons, and more, plus a $16 billion buyback program that pushed shares up over 6%.
These deals target younger fans and premium experiences, exactly the demographic driving growth. Q1 2026 earnings now come on April 23.
Massive New HQ at 2 World Trade Center: AmEx’s $5.9B NYC Bet
On February 25, 2026, AmEx revealed plans to build and own its new global headquarters at 2 World Trade Center.
The 55-story tower, set for 2031 completion, will add $5.9 billion to New York’s economy and seat up to 10,000 staff.
2026 Outlook: Can AmEx & Dow Financials Keep Leading?
AmEx enters 2026 with momentum from premium customers and a younger base. The Dow Jones financials reasserted leadership once rates eased and deals picked up. Albeit risks sit right there: higher expenses, potential tariff fallout, and any slowdown in affluent spending could pressure results.
Thus, investors chasing past gains should pause. Hold core positions if you believe in premium spending. Add on dips only if credit metrics stay clean. Diversify. AmEx remains a Dow stalwart, but 2026 will test whether financial leadership repeats or fades under new pressures.
According to a Bloomberg report, competition from Robinhood’s $695 Platinum Card is real, notwithstanding AmEx’s closed-loop moat across 130 countries and 30 quarters of pricing power cannot be copied overnight. AmEx’s 17% pullback in early 2026, does not erase the back-to-back strength of the stock.
Watch April 23 earnings closely. If billed business keeps climbing, AmEx could extend its run. If not, the Dow Jones may rotate again. Either way, the data so far supports a practical bet on resilience over hype.
Author: Richardson Chinonyerem
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
A Company-by-Company Look at the Dow Jones Index | Disruption Banking
American Express’s Ascent: Powering Up the Dow Jones | Disruption Banking
