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Young Affluent Consumers Drive Record Growth
American Express has demonstrated remarkable success in attracting and retaining millennial and Gen Z consumers, who are now driving unprecedented revenue growth for the financial services giant. The company’s third-quarter 2025 results reveal a strategic triumph in repositioning premium products for younger, digitally-native affluent customers who value experiences and lifestyle benefits over traditional status symbols.
Net income surged 16% to $2.9 billion, while earnings per share jumped 19% to $4.14, significantly outperforming analyst expectations. Total revenue reached an all-time high of $18.43 billion, representing an 11% increase year-over-year. The impressive results sent shares climbing 7%, reflecting investor confidence in Amex’s strategic direction.
The Platinum Card Evolution: From Travel to Lifestyle
CEO Steve Squeri highlighted the successful refresh of the U.S. Consumer Platinum Card and Business Platinum Card as a cornerstone of the quarter’s performance. “This represents the strongest rollout the card has seen,” Squeri told analysts, noting that new Platinum account acquisitions doubled compared to pre-refresh levels. The strategy reflects broader market trends toward premiumization across consumer sectors.
What began over 40 years ago as a product designed for “well-established, affluent, frequent travelers” has transformed into what Squeri describes as “the premium lifestyle card that it is today.” The evolution speaks volumes about changing consumer preferences and the importance of adapting legacy products to contemporary demands.
Digital-First Benefits Resonate with Younger Demographics
The 2025 Platinum refresh specifically targeted younger high-income consumers through enhanced digital perks and lifestyle-oriented benefits. The updated card now offers elevated travel rewards alongside new benefits in wellness, entertainment, and delivery services – categories that particularly resonate with millennial and Gen Z spending patterns.
This strategic pivot aligns with wider industry developments in financial technology and consumer behavior analysis. The immediate success was undeniable, with more than 500,000 requests for the redesigned Mira card pouring in within just three weeks of launch.
Spending Patterns Reveal Generational Shift
Millennials and Gen Z now account for 36% of total card member spending, matching Generation X’s contribution. More significantly, these younger cohorts are making 25% more transactions on average than older customers, indicating both higher engagement and different spending behaviors.
CFO Christophe Le Caillec noted that spending among Platinum cardholders outside the U.S. climbed 24%, signaling successful global expansion among young professionals. The data suggests that American Express has effectively positioned itself as the preferred brand for upwardly mobile consumers worldwide, much like how other premium brands are capturing market share through strategic positioning.
Economic Bifurcation Creates Premium Opportunities
The success of American Express reflects a broader economic phenomenon that Federal Reserve Governor Chris Waller described as a “two-tier” effect. Waller estimates that premium producers are achieving approximately 40% pass-through of price increases to their “price-insensitive” affluent consumers, while seeing no inflation for consumer prices targeting the lower half of the income distribution.
This economic reality creates fertile ground for premium brands to thrive, particularly those that can effectively target the growing wealth concentration among top earners. Similar patterns are emerging across sectors, including in infrastructure and technology investments where premium solutions command premium pricing.
Strategic Product Refresh Philosophy
American Express has embraced a systematic approach to product evolution, completing over 200 refreshes across its global portfolio since 2019. According to Squeri, this represents a “proven strategy of refreshing our products on a regular basis to drive customer engagement and growth.” The U.S. Platinum refresh marks the third such update in the past decade.
The company’s approach to continuous innovation mirrors transformations happening in other industries where established players are adapting to new competitive landscapes and consumer expectations.
Future Outlook and Shareholder Returns
Buoyed by strong performance, American Express raised its full-year 2025 outlook, now projecting revenue growth between 9% and 10% and EPS of $15.20 to $15.50. The company continues to return significant value to shareholders, having distributed $2.9 billion this year through $2.3 billion in stock buybacks and $600 million in dividends.
Over the past three years, American Express has returned approximately 70% of its earnings to investors, demonstrating both financial strength and commitment to shareholder value. The company’s success in capturing younger affluent consumers positions it well for sustained growth as these customers’ wealth and spending power increase over time.
“Several years ago, we made a conscious decision to widen our aperture for premium products so that we could attract new generations and grow with them as their needs change,” Squeri explained, highlighting the strategic foresight that has positioned American Express for continued success in evolving consumer markets.
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