Dive Brief:

• The affluence of American Express customers partially insulates the credit card giant from economic uncertainty brought on by inflation and a government shutdown, executives at the card network said in a Friday earnings call.
• The comments came in response to investor questions about possible headwinds weighing on the economy and threatening the consumer spending that New York City-based Amex depends on.
• “Our card base is not representative of what’s going on across the United States,” Amex CEO Steve Squeri said. “It truly is a bifurcated economy. We have a small percentage of the cards, but our card holders are much more premium.”

Dive Insight:

Spending on Amex cards in key sectors like hospitality and luxury travel showed big increases, Squeri stressed.

The money American Express card holders spent on front cabin airline tickets, for example, was up 14% year-over-year in the third quarter and restaurant spending was up 9% year-over-year, he told investors.

“That was really encouraging for us,” Squeri said.

Amex CFO Christophe Le Caillec noted during the call that "there continues to be uncertainty in the [economic] environment," but added that the card company's customers don't seem to be reacting to such economic strains.

Some analysts don’t foresee difficulties at the moment either. “We believe that American Express is a unique franchise with a wide moat, driven by its well-known brand,” William Blair analysts wrote in a note to investors on Friday.

Analysts for the investment bank Jefferies noted that Amex beat Wall Street’s expectations in most categories.

“The momentum was supported by better-than-expected spending volume,” the analysts wrote in a Friday note to investors. Amex reported $421 million in card member spending in the third quarter, a 9% increase compared to the same quarter in 2024.

To be certain, the card network has taken steps to prepare for a possible economic downturn. For example, American Express is making a push to spur corporate clients to use their business cards more often for business-related expenses, Squeri said during a presentation in June.

Amex reported $2.9 billion in net income for the quarter, a 16% increase over the same quarter in 2024.

The card network reported total revenue of $18.43 billion for the quarter, an 11% increase compared to the year-ago quarter.