Amex cardholders are loading up on luxury goods and premium airfares, as spending growth picks up

By Emily Bary

American Express books 10% spending growth in the first quarter

Amex topped revenue and earnings expectations on Thursday.

As American Express saw cardmember spending pick up in the first quarter, some of the strongest categories were high-end goods and services.

The company posted 10% growth in overall spending for the period, or 9% growth after currency adjustments. That compares with 9% growth, or 8% excluding currency impacts, in the fourth quarter.

CFO Christophe Le Caillec told MarketWatch on Thursday that luxury spending outperformed overall spending, up 18% in the period. And while overall airline spending increased 8%, the company saw 12% growth in premium-cabin spending.

"Our card members are doing very well," Le Caillec said, noting that the company doesn't necessarily have a cardholder base that's representative of the U.S. economy. Amex (AXP) caters to a more affluent segment of the population.

The company recently raised the annual fee of its Platinum card to $895, up $200 from before. As of the end of the first quarter, about 25% of cardholders had reached their renewal dates and were faced with the new annual fee. Though there was some consternation on Wall Street after Amex announced the change, Le Caillec said that retention rates have been "extremely strong," with no meaningful difference after the refresh.

See also: Is the revamped American Express Platinum card worth the $895 fee? This new perk may seal the deal.

Amex is continuing to make a push for younger cardholders, with Le Caillec flagging that the average age of new Gold card members is 29 while the average age of new Platinum card members is 33. Millennial and Gen-Z members are also showing interest in Amex's savings offerings, according to Le Caillec.

The company beat first-quarter expectations for its major financial metrics, posting $18.9 billion in revenue, up 11% from a year before and above the $18.6 billion consensus view. Amex logged $4.28 in earnings per share, up from $3.64 in the year-prior period and ahead of the $4 that analysts were expecting.

Amex plans to "reinvest its superior performance" into areas like cardmember acquisitions and thus is keeping its full-year outlook intact, Le Caillec said. That forecast calls for 9% to 10% revenue growth as well as $17.30 to $17.90 in earnings per share.

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-Emily Bary

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04-23-26 0806ET