⚡What does American Express do, in 30 seconds?
American Express issues payment cards, signs up merchants to take them and runs its own card network, all as one business 9. It earns mainly from spending on its cards, then from interest and fees, and charges an annual fee on many cards 5. In FY2025 its revenue was $72.2bn ✓, and it kept $10.8bn ✓ as profit.
📱What does American Express sell?
American Express reports four segments: two for U.S. card holders and businesses, one for cards issued abroad, and one for the network and merchants 4. Below, revenue is split into net interest income and everything else.
Merchant discounts, card fees and other
Most of the money, with $54.9bn ✓ in FY2025. The biggest part is the discount: what American Express keeps from the fee merchants pay to take its cards 2. Discount revenue was 2.24% of billed business in 2025 3. Annual card fees add more, with net card fees of $9,993 million in 2025, up 18% 3. Other fees include foreign-currency fees, late fees and travel commissions 2.
👥 Merchants that accept the cards, and Card Members who pay annual fees 2 2.
Net interest income
The interest earned on card loans, minus the interest paid to savers and lenders: $17.4bn ✓ in FY2025. Interest comes mainly from balances people carry on their cards 24. Card Member loans were $151.8 billion at December 31, 2025 24. It also offers savings and checking accounts, with customer deposits of $152.5 billion at the same date 54.
👥 Consumers and small businesses who borrow on their cards, and savers 24 54.
How the mix has shifted
Where the customers are
Most of American Express's revenue comes from the United States, at 77% ✓ in FY2025. Europe, the Middle East and Africa added 10% ✓. Asia Pacific, Australia and New Zealand added 7% ✓, and Latin America, Canada and the Caribbean 6% ✓. Banks and other institutions in about 110 countries and territories are also licensed to issue its cards or sign up merchants 9.
💸How does American Express make money?
Follow the money from left to rightfrom top to bottom: what comes in, what it costs to run, what is lost on insurance claims, and what is left as profit.
For a card company like American Express, revenue means fees plus interest, after paying interest to savers and lenders. Its revenue was $72.2bn ✓ in FY2025. Merchant discounts, card fees and other fees brought in $54.9bn ✓. Net interest income added $17.4bn ✓.
The company's cards cover a lot of spending. In 2025, people spent $1,669.8 billion on the cards American Express issues itself 3 52. Network volumes, which also count cards from partner banks and some other payment services, were $1,897.0 billion 3 52.
Running costs took $53.2bn ✓. In 2025 its rewards, Card Member services and business development costs together grew faster than its revenues 3. Next, card losses, money set aside for card balances that may not be repaid, took $5.3bn ✓. That left $13.8bn ✓ of pretax profit. Tax took $3.0bn ✓, and American Express kept $10.8bn ✓ as profit.
Out of every $100 of revenue, about $74 ✓ went on running costs and $7 ✓ on card losses. Tax took $4 ✓, and American Express kept $15 ✓.
Out of every $100 of revenue in FY2025…
⏱️ American Express by the clock
Spread the FY2025 totals evenly over its 365 days and you get this. Source: AMERICAN EXPRESS CO 10-K [1].
📈How is American Express doing?
American Express's revenue more than doubled from FY2015 to FY2025, growing 8.2% ✓ a year on average, from $32.8bn ✓ to $72.2bn ✓. It rose in 8 ✓ of those 10 ✓ years. Profit rose from $5.2bn ✓ in FY2015 to $10.8bn ✓ in FY2025. The share of revenue left as pretax profit slipped from 24.2% ✓ to 19.1% ✓.
The worst year was FY2020, when revenue fell 17.1% ✓. In FY2025 revenue grew 9.5% ✓. Over the four quarters to September 2026, revenue was $77.6bn ✓, up 10.2% ✓ on the four quarters before. In the third quarter of 2026, revenue rose 9% to $20.1 billion, and profit was $3.7 billion, up from $2.9 billion a year earlier 20. That quarter included a $982 million pre-tax gain from selling its stake in Global Business Travel Group 17. Part of the gain paid for a $336 million restructuring charge 17.
📝 The report card
American Express earns a top mark for profit on its owners' money, good marks for growth and its equity cushion, and a middling mark for steadiness. Cash generation is not graded ✓ for banks. Every company is graded on the same fixed scale, so an A means the same thing on every page. The strip shows where American Express (orange) and its 3 peers land; further right is better.
Growth
Revenue grew 11.0% ✓ a year over the last three fiscal years, which earns a B ✓. That ranked number 3 of the four companies ✓, a little below the 12.3% ✓ peer median. Capital One, at 16.0% ✓, earns an A ✓.
Why this measure? (higher is better)
Growing revenue is the engine of a business. For a bank, revenue is what it earns after paying interest to savers and lenders; for an insurer, it is mostly premiums. Mature giants rarely grow fast, so 5% a year already earns a C.
Profitability
Over the last three years combined, American Express earned 32.0% ✓ profit on its owners' money, which gets an A ✓. That ranked number 1 of the four companies ✓, far above the 5.8% ✓ peer median. JPMorgan, at 15.9% ✓, also gets an A ✓.
Why this measure? (higher is better)
Banks and insurers work with other people's money, so profit margins on revenue say little. Return on equity shows how much profit they make on the owners' money; above 15% is excellent for a big bank or insurer.
Cash generation
Not graded for banks and insurers: their cash flow mostly moves customers' money (deposits, loans, premiums), so it says little about the business.
Cash generation is not graded ✓ for banks. A bank's cash flow mostly shows customers' money moving in and out. American Express's operating cash flow went from $21.1bn ✓ in FY2022 to $14.1bn ✓ in FY2024 and $18.4bn ✓ in FY2025, which says little about how the business did.
Balance sheet
Shareholders' equity was 11.2% ✓ of everything American Express owned at the end of FY2025, which earns a B ✓. That ranked number 2 of the four companies ✓, above the 8.2% ✓ peer median. Capital One, at 17.0% ✓, earns an A ✓.
Why this measure? (higher is better)
Owners' equity is the cushion that absorbs losses before customers' money is at risk. The thicker the cushion compared with everything the company owns, the safer it is.
Steadiness
American Express's yearly growth swings by 11.4% ✓, measured as a standard deviation, which earns a C ✓. That ranked number 4 of the four companies ✓, swinging more than the 6.4% ✓ peer median. Citigroup, at 4.4% ✓, gets an A ✓.
Why this measure? (lower is better)
Steady growers are easier to plan around. Big swings mean revenue depends on interest rates, markets or one-off events.
🧑🏫 How the grades work
- Same scale for everyone. Each measure has fixed cut-offs (shown under each strip). Clear the A line and you get an A, whatever your peers do.
- Three years together. Profitability and cash generation add up the last three fiscal years before dividing, so one unusual year counts for less than it would on its own (a year much bigger than the others still weighs most).
- Banks and insurers are graded differently. They lend or invest customers' money, so profitability uses return on equity, the balance sheet uses the owners' share of total assets, and cash generation is not graded. They are compared only with other banks and insurers.
- Peers for context. The rank shows how American Express compares with the group. Companies within 0.1 percentage point share a rank.
- Same source. Every company's figures come from its own latest annual report (10-K), so fiscal years end in different months.
- Judgement, openly stated. The cut-offs are QuantVantage.ai's view of what good looks like for a large, established company. They are not a forecast or a recommendation.
11 years at a glance
Where the cash goes
In FY2025 American Express handed about three quarters of its profit back to shareholders. From FY2015 to FY2025 it spent $59.4bn ✓ on dividends and buybacks. In FY2025 alone it paid out $8.1bn ✓, or 74.6% ✓ of profit: $5.8bn ✓ of buybacks and $2.3bn ✓ of dividends. On March 2, 2026 it raised its quarterly dividend to $0.95 a share, from $0.82 25.
🧮Ratios 101: what are American Express' key financial ratios?
Ratios shrink American Express's big numbers into easy comparisons. Its profit on the owners' money and on its assets is far above the banks it is compared with here. A ratio divides one number by another so companies of any size can be compared. Each card shows the formula with American Express' real FY2025 numbers, the peer median and the trend.
💰 Profitability: how much of each dollar of revenue is kept?
Net margin
The bottom line: profit after interest and taxes, per dollar of revenue.
👉 American Express keeps 15.0% ✓ of revenue as final profit, close to the 15.7% ✓ of FY2015 and a little below the 16.8% ✓ peer median.
📏 Rule of thumb: Above 15% is strong; one-off tax items can move it in a single year.
Return on equity (ROE)
Profit earned for each dollar that shareholders have left in the company.
👉 ROE of 32.4% in FY2025 ✓ is far above the 6.7% ✓ peer median, and up from 25.0% ✓ in FY2015.
📏 Rule of thumb: Around 15% or more is good, but buybacks shrink equity and can make ROE look huge.
⚙️ Efficiency: how hard do the assets work?
Return on assets (ROA)
Profit earned from everything the company owns, however it was paid for.
👉 American Express made 3.6% ✓ on $300.1bn ✓ of assets, against a 0.5% ✓ peer median and its own 3.2% ✓ in FY2015.
📏 Rule of thumb: For big banks, about 1% on assets is usual and above 1.2% is strong; insurers are not judged on that scale.
💵 Cash and owners: where does the money end up?
Stock pay
Pay given to staff in shares instead of cash. It is a real cost to owners because it adds shares.
👉 Stock pay was 0.8% ✓ of revenue, about the same as the 0.7% ✓ of FY2015 and below the 1.7% ✓ median of two peers.
📏 Rule of thumb: Banks and insurers pay part of their staff in shares, so a few percent of revenue is normal.
Shareholder payout
How much of the year's profit was handed back to owners.
👉 American Express returned 74.6% ✓ of FY2025 profit, down from 109.9% ✓ in FY2015 and below the 130.2% ✓ peer median.
📏 Rule of thumb: Above 100% means it returned more than it earned, using cash savings or debt.
Ratios use fiscal-year-end balance sheet values. Inputs are shown rounded, so dividing them can differ from the result in the last digit. A peer median leaves out peers that do not report the inputs, or where the ratio means nothing (for example, negative shareholders' equity). Rules of thumb are general guides from QuantVantage.ai, not hard limits. No share-price ratios (like price-to-earnings) are shown on this page.
🥊Who are American Express' competitors?
American Express competes with other card issuers and card networks 10. Capital One says its card business competes with American Express 26. American Express says rival issuers and networks go after high spenders with perks such as airport lounges 10.
| Company | Where they compete | Revenue | Growth/yr (3y) | Pretax margin | Return on equity (3y) |
|---|---|---|---|---|---|
| American Express (AXP, FY2025) | Issues cards, signs up merchants and runs its own card network as one business 9; it calls itself the fourth-largest card network in the world by purchase volume 10 | $72.2bn | 11.0% | 19.1% | 32.0% |
| Capital One (COF, FY2025) | Card issuers that own card networks 101112. At 31 December 2025, American Express's two U.S. segments held $100.2 billion and $30.8 billion of Card Member loans 101112. The segments are U.S. Consumer Services and Commercial Services, and the loans are revolve-eligible card loans, not charge-card balances 101112. Capital One had $262.4 billion of U.S. credit card loans 101112. | $53.4bn | 16.0% | 4.3% | 5.2% |
| JPMorgan Chase (JPM, FY2025) | Credit cards with travel and lifestyle perks; American Express says rivalry from issuers for premium customers is intense 10413. At 31 December 2025, American Express had $151.8 billion of Card Member loans worldwide, excluding charge-card receivables, and JPMorganChase had $247.8 billion of credit card loans 10413. | $182.4bn | 12.3% | 39.8% | 15.9% |
| Citigroup (C, FY2025) | Co-branded credit cards with big partners: Delta for American Express, Costco and American Airlines for Citi 91114. At 31 December 2025, American Express's two U.S. segments held $100.2 billion and $30.8 billion of Card Member loans 91114. The segments are U.S. Consumer Services and Commercial Services, and the loans are revolve-eligible card loans, not charge-card balances 91114. Citi had $121.5 billion of U.S. Branded Cards loans and $52.2 billion of U.S. Retail Services loans 91114. | $85.2bn | 4.2% | 23.3% | 5.8% |
American Express says it is the fourth-largest card network in the world by purchase volume, behind Visa, China UnionPay and Mastercard 10. Capital One describes American Express as a strong network rival with an upscale brand image 27.
🧭American Express SWOT: strengths, weaknesses, opportunities and threats
💪 Strengths
- Its average fee per card rose to $117 in 2025, from $92 in 2023 3.
- Average spending per basic Card Member was $25,453 in 2025, and the company says its cards see more spending per card than rival networks' cards 93.
- As both card issuer and merchant acquirer, it says it sees information at both ends of a card payment 9.
- It earns an A ✓ for profit on its owners' money.
🩹 Weaknesses
- The merchant discount fell to 2.24% of billed business in 2025, from 2.29% in 2023 3.
- Delta cobrand cards made up about 13% of worldwide billed business and about 21% of Card Member loans in 2025 9.
- In its fiscal 2025 annual report, American Express said more merchants, where the law allows, add a surcharge for paying with its cards 16.
- On October 8, 2026 American Express Company and its subsidiary American Express Travel Related Services (TRS) consented to a Federal Reserve order 1718 9. American Express National Bank consented to an OCC order 1718. They resolve previously disclosed reviews of certain aspects of its financial crimes compliance program 1718.
🚀 Opportunities
- Millennial and Gen-Z Card Members were the largest and fastest-growing group in its U.S. consumer segment in the third quarter of 2026 19.
- International Card Services was its fastest-growing segment in the third quarter of 2026, with billed business up 11% 19.
- In October 2026 it said its cards were accepted at more than 190 million merchant locations 15. That estimate includes about 80 million in China and Brazil, partly through digital wallets and payment facilitators 15. It said acceptance outside the U.S. more than doubled over four years 15.
- In the third quarter of 2026 it began an exclusive partnership with Airbnb that brings over one million listings to Amex Travel 20.
⚠️ Threats
- In its fiscal 2025 annual report, American Express said proposals to cap credit card interest rates could hurt its revenue growth and profitability 16.
- Merchant suits in U.S. federal courts in Massachusetts and Rhode Island claim its anti-steering and non-discrimination rules break antitrust law 17. Both were open as of its 10-Q for the quarter to September 30, 2026 17.
- It calls competition for cobrand partners very intense; cobrand cards made up about 26% of worldwide billed business in 2025 16.
- In June 2026 Australia's central bank began a review of payments regulation that covers three-party networks such as American Express 21.
🏰Does American Express have a moat?
Why 4?
American Express calls its brand, with its trust, security and service, a key asset 9. The average fee per card rose to $117 in 2025, from $92 in 2023 3. Net card fees rose 20% in U.S. Consumer Services and 20% in International Card Services in 2025 3. Average spending per basic Card Member was $25,453 in 2025 93. Even so, the merchant discount slipped to 2.24% of billed business in 2025 3.
Why 3?
American Express credited strong Card Member retention for part of its 2025 card fee growth 3. Its chief executive cited retention again in the third quarter of 2026 15. Delta's cobrand agreement runs through 2029 9. The company calls competition for cobrand partners very intense 16. Rivals chase high spenders with perks 10, and Card Member spending is spreading across cards and payment methods 16.
Why 4?
American Express issues cards, signs up merchants and runs the network as one business 9. It says that lets it see information at both ends of a card payment 9. In October 2026 it said its cards were accepted at more than 190 million merchant locations 15. That estimate includes about 80 million in China and Brazil, partly through digital wallets and payment facilitators 15. Banks in about 110 countries and territories are licensed to issue its cards or sign up merchants 9. Still, it says it is the fourth-largest network by purchase volume, behind Visa, China UnionPay and Mastercard 10, and some merchants add a surcharge for its cards 16.
Why 3?
In 2025 its network volumes were $1,897.0 billion, with 152.8 million cards in force 3. It employed about 76,800 people at the end of 2025 9. But in 2025 its rewards, Card Member services and business development costs together grew faster than its revenues 3. It says its merchant discount rates have eroded as it widens merchant acceptance 16.
Why 3?
American Express and its main operating subsidiary are bank holding companies, supervised and examined by the Federal Reserve 9. It says it places significant importance on its trademarks, service marks and patents 9. It also left its network licensing businesses in the EU and Australia because of regulation, and says its exemptions from some card-fee rules may not continue 16.
A moat is what keeps rivals from taking a company's customers and profits. Scores are QuantVantage.ai's judgement (5 = strongest), set with the same rubric on every explainer (orange is American Express; grey dots are peers).
🔭What should you watch next?
Full-year 2026 results
In October 2026 American Express raised its 2026 outlook and said it was on track for 10% revenue growth for the year 20. Figures on this page run to FY2025, plus the third quarter of 2026.
Fed and OCC consent orders
On October 8, 2026 American Express Company and its subsidiary American Express Travel Related Services (TRS) consented to a Federal Reserve order 1718 9. American Express National Bank consented to an OCC order 1718. The orders resolve previously disclosed reviews of certain aspects of its financial crimes compliance program, and the bank agreed to pay the OCC a $350 million civil money penalty 1718.
Merchant antitrust suits
Merchant suits in U.S. federal courts in Massachusetts and Rhode Island claim its anti-steering and non-discrimination rules break antitrust law 17. As of its 10-Q for the quarter to September 30, 2026, courts had refused to send both cases to arbitration, and it was appealing in Massachusetts 17.
Stress capital buffer
Its stress capital buffer stays at 2.5%, the regulatory minimum, through December 31, 2027, with a new requirement from January 1, 2028 21.
Delta partnership
Delta is American Express's largest partner, under an agreement that runs through 2029 9.
📚Learn the words
❓Frequently asked questions about American Express
How does American Express make money?
American Express earns mainly from spending on its cards, and then from interest and fees 5. Merchants pay a fee to accept its cards, and it keeps a part called discount revenue, its largest source 2. Card Members pay annual fees on many cards 5. In FY2025 its revenue was $72.2bn ✓.
Is American Express a bank?
It owns one: its bank is American Express National Bank 1718. American Express Company and its main operating subsidiary are bank holding companies, supervised and examined by the Federal Reserve 9. It offers savings and checking accounts, with $152.5 billion of deposits at December 31, 2025 54. U.S. deposits are FDIC-insured up to $250,000 per depositor, per ownership category 4.
What is the difference between a charge card and a credit card?
A charge card generally has no pre-set spending limit and must be paid in full each month 2. American Express charge cards let some balances move into lending features such as Pay Over Time and Plan It 2.
What do merchants pay to take American Express?
Merchants pay a fee on each card payment, and the rate depends on things such as the merchant's industry and its American Express volume 2. In 2025 the discount came to 2.24% of billed business 3. Some merchants also pay a flat fee per payment, or more for online payments, or when U.S. merchants take cards issued outside the U.S. 2.
What happened with the Fed and OCC orders in October 2026?
On October 8, 2026 American Express Company and its subsidiary American Express Travel Related Services (TRS) consented to a Federal Reserve order 1718 9. Its bank, American Express National Bank, consented to an OCC order 1718. The orders resolve previously disclosed reviews of certain aspects of its financial crimes compliance program, and the bank agreed to pay the OCC a $350 million civil money penalty 1718.
Who is American Express's biggest partner?
Delta Air Lines is its largest partner 9. In 2025 the Delta cobrand cards made up about 13% of worldwide billed business and about 21% of Card Member loans 9.
🎮Play: higher or lower, then test yourself
Figures come from each company's latest annual report (10-K); fiscal years end in different months. Sources: [1] [6] [7] [8].
🧠 Test yourself
5 quick questions. Score: 0 / 5
1. In which year was American Express founded?
2. What was the average fee per American Express card in 2025?
3. Which airline is American Express's largest partner?
4. Roughly how much profit did American Express make each second in FY2025?
5. How many Centurion Lounges did American Express have after opening one in Amsterdam in 2026?
🔎Sources and method
Every figure comes from a source listed here or is calculated from those sources (marked ✓). Company financials are taken from SEC filings (10-K and 10-Q) as tagged in XBRL. Peer grades rank the same measures across the company and its peers. This page contains no share-price data and no valuation.
- SEC EDGAR companyfacts: American Express (AXP) — annual 10-K facts (accessed 2026-10-28)
- American Express Company Form 10-K for fiscal year 2025 — Item 7 MD&A: revenue types (discount revenue, net card fees, service fees, interest income), 2025 spending mix, glossary of terms (accessed 2026-10-31)
- American Express Company Form 10-K for fiscal year 2025 — Item 7 MD&A: card fees, retention, Table 5 card and spending statistics, expense trends (accessed 2026-10-30)
- American Express Company Form 10-K for fiscal year 2025 — Notes and statistical disclosures: reportable operating segments, Card Member loans at December 31, 2025, customer deposits and uninsured deposits (accessed 2026-10-31)
- American Express Company Form 10-K for fiscal year 2025 — Cover page and Item 1 business: headquarters address, founding and incorporation, fiscal year, products, Membership Model, partners, OptBlue, jurisdictions, executive officers (accessed 2026-10-31)
- SEC EDGAR companyfacts: CAPITAL ONE FINANCIAL CORP (COF) — annual 10-K facts (accessed 2026-10-28)
- SEC EDGAR companyfacts: JPMORGAN CHASE & CO (JPM) — annual 10-K facts (accessed 2026-10-28)
- SEC EDGAR companyfacts: CITIGROUP INC (C) — annual 10-K facts (accessed 2026-10-28)
- American Express Company Form 10-K for fiscal year 2025 — Item 1 business: founding, integrated payments platform, card issuing, merchant acquiring, network partners, cobrand partners, brand, colleagues (accessed 2026-10-30)
- American Express Company Form 10-K for fiscal year 2025 — Item 1 competition: rival networks and issuers, network size ranking (accessed 2026-10-30)
- American Express Company Form 10-K for fiscal year 2025 — Item 7 segment results: U.S. Consumer Services and Commercial Services Card Member loans at December 31, 2025 (accessed 2026-10-31)
- Capital One Financial Corporation Form 10-K for fiscal year 2025 — Discover acquisition and networks, card competitors, domestic credit card loans at December 31, 2025 (Note 4) (accessed 2026-10-31)
- JPMorgan Chase Form 10-K for fiscal year 2025 — Card Services description, total credit card loans at December 31, 2025 (consumer credit portfolio) (accessed 2026-10-31)
- Citigroup Form 10-K for fiscal year 2025 — Branded Cards and Retail Services portfolios and end-of-period credit card loans, fourth quarter 2025 (accessed 2026-10-31)
- American Express Form 8-K, Exhibit 99.1: third quarter 2026 results release (October 23, 2026) — Q3 2026 billed business, merchant acceptance, chief executive commentary (accessed 2026-10-30)
- American Express Company Form 10-K for fiscal year 2025 — Item 1A risk factors: merchant discount rates, surcharging, cobrand concentration, card regulation (accessed 2026-10-30)
- American Express Company Form 10-Q for the quarter ended September 30, 2026 — Notes: GBTG sale, Swisscard acquisition, new headquarters, card balances and deposits at September 30, 2026, legal proceedings and consent orders (accessed 2026-10-31)
- American Express Company Form 8-K (October 8, 2026) — Consent orders with the Federal Reserve and the OCC and civil money penalty (accessed 2026-10-31)
- American Express Company Form 10-Q for the quarter ended September 30, 2026 — MD&A executive overview: third quarter 2026 billed business, revenue lines, customer cohorts, expense outlook (accessed 2026-10-31)
- American Express Form 8-K, Exhibit 99.1: third quarter 2026 results release (October 23, 2026) — Q3 2026 revenue, net income, net write-off rate, full-year 2026 outlook, business highlights, stock exchange listing (accessed 2026-10-31)
- American Express Company Form 10-Q for the quarter ended September 30, 2026 — Supervision and regulation: Category II status, stress capital buffer, Australia surcharging and payments review, EU Court of Justice cobrand ruling (accessed 2026-10-31)
- SEC EDGAR companyfacts: American Express (AXP) — quarterly 10-Q/10-K facts (accessed 2026-10-28)
- SEC EDGAR companyfacts: American Express (AXP) — balance sheet at 2026-09-30 (accessed 2026-10-28)
- American Express (AXP) Form 10-K for fiscal year 2025, filed 2026-02-06 — revenue by product, segment and geography (accessed 2026-10-28)
- American Express Company Form 8-K (March 2, 2026) — Quarterly common dividend increase (accessed 2026-10-31)
- Capital One Financial Corporation Form 10-K for fiscal year 2025 — Item 1 business: card issuing rank, Discover acquisition, Global Payment Network, competition, workforce (accessed 2026-10-30)
- Capital One Financial Corporation Form 10-K for fiscal year 2025 — Item 1A risk factors: network competition, merchant acceptance, Regulation II, technology infrastructure (accessed 2026-10-30)
- American Express Company Form 10-Q for the quarter ended September 30, 2026 — Item 5 other information: Lead Independent Director succession (accessed 2026-10-31)