AMEX Strength: Record FY24 Wins, 2025 Growth Plan.

American Express Posts Record FY24; Raises Capital Return

American Express (AXP) closed FY2024 with one of its strongest performances in recent history. The company reported $65.9 billion in revenue and a record net income of $10.1 billion, translating to diluted earnings per share of $14.01. These results were driven by broad-based growth across its core franchises—Consumer Services, Commercial Services, and Merchant & Network Services—along with an acceleration in cardmember spending.

Key Financial and Operational Highlights

Top-line and profitability

Revenue rose about 9% year-over-year (10% on an FX-adjusted basis), reflecting sustained spending and higher net card fees. Management also delivered a strong bottom-line performance, with EPS up roughly 25% versus the prior year. These outcomes underpin the company’s decision to increase capital returned to shareholders, including a 17% rise in the quarterly common stock dividend.

Card growth and billings

American Express added approximately 13 million new card members in FY24 and reported billings growth of about 8% in the fourth quarter, signaling ongoing consumer and commercial demand for charge and credit products. That scale reinforces AmEx’s ability to monetize premium cardholder relationships and cross-sell services.

Merchant & Network Services: Volume and Profitability

Network volume and segment income

Merchant & Network Services (GMNS) continued to exhibit healthy trends. Recent data indicate network volume near $479.2 billion in the referenced quarter, up about 9% year-over-year, while pretax segment income for GMNS rose to roughly $1.04 billion. Strong volume growth helps sustain network economics and underwrites investments in acceptance and technology.

Why GMNS matters for investors

GMNS performance is a bellwether for AmEx’s ability to convert cardholder activity into durable fee and interchange revenue. Higher network volumes expand merchant relationships and create leverage for pricing and product distribution—important for long-term margin stability.

Management Positioning: Merchant Surcharges and Customer Experience

CEO comments at industry conference

At a recent financial services conference, CEO Steve Squeri publicly criticized merchant surcharges, arguing they undermine customer trust and dilute the premium value proposition that AmEx offers. This stance is notable because potential regulatory or industry shifts around interchange and surcharging are tangible risks for card networks; AmEx is framing the debate around customer experience rather than short-term fee capture.

Outlook and Investor Takeaways

For FY2025, American Express provided guidance calling for revenue growth in the mid-to-high single-digit range and projected adjusted EPS of roughly $15.00 to $15.50. Management’s plan to increase the dividend and deliver disciplined capital returns signals confidence in cash flow generation and a commitment to shareholder value.

Taken together—record FY24 results, robust card and network volume, a meaningful dividend increase, and clear messaging from leadership—these developments create concrete, near-term support for AXP’s investment thesis. The combination of premium customer loyalty, expanding merchant acceptance, and disciplined capital allocation should be watched closely by investors evaluating exposure to payments and commercial card franchises.

Conclusion

American Express enters the new fiscal year with measurable momentum across its consumer, commercial, and merchant networks. Recent results and management decisions offer tangible signals about profitability and capital strategy rather than speculative narratives, providing a clearer basis for investor assessment of AXP.