American Express (NYSE: AXP) is a global financial services company renowned for its credit card, charge card, and travel-related services. Competing with giants like Visa and Mastercard, American Express is gearing up to release its quarterly earnings on Friday, October 17, 2025. Analysts are estimating an EPS of $3.96 and revenue of $18.05 billion.
The anticipated revenue of $18.05 billion for the third quarter signifies a notable increase from the $16.64 billion reported in the same quarter last year. This growth is primarily driven by increased cardholder spending and a rise in net card fees, showcasing the company's strong ability to surpass analyst revenue estimates in six of the last ten quarters.
Analysts are projecting an EPS of $4.00 for the third quarter, an increase from $3.49 in the previous year. American Express has consistently exceeded earnings per share estimates in two consecutive quarters and in seven of the last ten quarters. This performance is bolstered by the greater penetration of premium products and strong retention rates, as well as higher merchant acceptance in the international segment.
American Express boasts a market capitalization of $229 billion, with reported revenues of $69 billion and a net income of approximately $10 billion over the past year. The company's financial metrics, such as a P/E ratio of 22.75 and a price-to-sales ratio of 2.99, underscore its robust market position. However, a debt-to-equity ratio of 1.85 indicates a higher level of debt compared to equity, which may raise concerns among investors.
The upcoming earnings report is pivotal for American Express, as it could significantly impact the stock price depending on whether the company meets or exceeds expectations. The management's discussion during the earnings call will be crucial in assessing the sustainability of any immediate price changes and future earnings expectations.
