What Happened?
Shares of global payments company American Express (NYSE: AXP) jumped 6.3% in the afternoon session after the company reported better-than-expected results for the third quarter of 2025, beating Wall Street's estimates for revenue and profit. The global payments company posted revenue of $13.94 billion, an 11.8% increase from the same period last year, which surpassed analyst expectations. Earnings came in at $4.14 per share, also ahead of consensus estimates and up from $3.49 in the year-ago quarter. This strong performance was supported by a significant rise in customer spending, with total transaction volumes growing 8.7% year-on-year to $479.2 billion, also topping forecasts. Overall, the solid top- and bottom-line beats signaled healthy consumer engagement and effective business execution, boosting investor confidence.
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What Is The Market Telling Us
American Express’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 2.9% as a new partnership with RewardPay was announced, creating a tax pooling payment system designed to reward businesses in New Zealand. This system allowed companies to make tax payments using American Express cards, earning rewards and gaining up to 55 interest-free days, which helped improve cash flow. The move positioned American Express to increase its transaction volume in the business-to-business sector, especially among small and medium-sized companies seeking credit flexibility. Adding to the positive sentiment, RBC Capital raised its price target on the stock to $380 from $360, pointing to the strength of the company's customer base and its earnings growth outlook. Separately, the company also increased the annual fee on its Platinum cards by $200 but added new benefits in travel and dining credits.
American Express is up 15.9% since the beginning of the year, and at $345.75 per share, has set a new 52-week high. Investors who bought $1,000 worth of American Express’s shares 5 years ago would now be looking at an investment worth $3,374.
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