Young Spenders Boost American Express to New Heights

American Express is on a roll, thanks to young, wealthy spenders. The company just reported a huge jump in profits and revenue. They made $2. 9 billion in net income, up 16% from last year. Earnings per share also went up by 19%, beating what experts expected. Total revenue hit a record $18. 43 billion, which is 11% more than last year. So, who's driving this success? Millennials and Gen Z. They now make up 36% of all card spending, matching Gen X. Plus, they're making 25% more transactions than older customers. These young folks love premium products, which is great for American Express. But it's not just about American Express. Other brands are also benefiting from a trend where wealthy people are spending more on premium products. The top 10% of households are responsible for nearly half of all consumer spending. This is a big deal because consumer spending makes up two-thirds of the U. S. economy. American Express isn't just sitting back and enjoying the ride. They're constantly refreshing their products to keep customers engaged. Their latest refresh of the Platinum Card was a huge hit, with new accounts doubling compared to before. The new card comes with lifestyle and digital perks that young, high-income consumers love. Because of this strong performance, American Express raised its full-year outlook. They now expect revenue growth of 9% to 10% and earnings per share between $15. 20 and $15. 50. Over the past three years, they've returned about 70% of their earnings to investors. Millennials and Gen Z are key to American Express's future. The company has been working to attract these younger generations and grow with them. The Platinum Card has evolved from a travel card to a premium lifestyle card with a wide range of benefits. Young customers love the digital entertainment, wellness, and delivery services benefits, in addition to travel offerings.