Is American Express a Buy Ahead of Its Platinum Card Refresh?

Key Points

• Subscription-like card fee revenue is growing at strong, double-digit rates.

• Management recently reaffirmed 2025 guidance, highlighting record spending -- even before the upcoming Platinum refresh.

• At roughly 21 times this year's earnings guidance, the valuation looks attractive given American Express's broad-based growth drivers.

• 10 stocks we like better than American Express ›

American Express (NYSE: AXP) has quietly strung together a run of steady results while the company readies a sizable update to its flagship Platinum card in the U.S. The global payments company, which leans heavily on high-spending cardmembers, fee income, and a closed-loop network, continues to post healthy top-line growth and best-in-class credit performance. Shares have also marched higher in 2025 as investors reward that consistency.

There is no way to know how the stock will react to the Platinum card overhaul in the near term. But the underlying business numbers already point in the right direction, and a well-executed refresh could extend a multiyear trend of rising card fees and engagement. That combination makes the stock look attractive for investors with a longer horizon.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Resilient growth backed by premium engagement

Recent results reinforce the strength of the business. In the second quarter of 2025, revenue rose 9% year over year to a record $17.9 billion, and earnings per share were $4.08. On an adjusted basis that excludes last year's gain from the sale of Accertify, earnings per share increased 17% year over year.

Management also highlighted record cardmember spending and reaffirmed full-year 2025 guidance for revenue growth of 8% to 10% and earnings between $15.00 and $15.50 per share.

"We saw record Card Member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class," said Chairman and CEO Stephen Squeri in the company's earnings release. He also pointed to the upcoming Platinum refresh this fall as a driver to "sustain our leadership in the premium space, drawing on our competitive strengths."

Under the hood, the company's revenue mix continues to shift toward high-margin revenue. Net card fees -- a key proxy for the strength of premium value propositions -- climbed 20% year over year to about $2.48 billion in the quarter. That stream has compounded at roughly 17% annually since 2019, supported by strong acquisition, elevated renewals, and ongoing product updates.

Meanwhile, discount revenue (the fee American Express earns from merchants when a cardmember uses an Amex card to make a purchase) increased 6% and net interest income rose 12% as revolving balances grew, underscoring American Express's broad-based growth drivers.

Importantly, credit metrics remain solid as well: Cardmember loan net write-offs held near 2% to 2.4% across recent quarters, and past-due rates stayed low, supporting the company's confidence in its full-year outlook.

Why the Platinum refresh enhances the bull case

American Express all but confirmed this week on social media that the new U.S. consumer and business Platinum cards will debut this week, on Sep. 18.

The company's playbook for card refreshes is well-rehearsed from previous refreshes: Add or tune benefits, boost the value for the cardmember, and attract new customers or upgrades from lower-fee products. Historically, this has translated into higher engagement and steadily rising fee revenue -- exactly the trend visible in recent quarters. A fresh Platinum lineup may accelerate that trajectory by giving existing members reasons to stay and new prospects reasons to join while reinforcing the brand's travel and lifestyle positioning.

Even before management has data on the overhauled card's performance, the company is upbeat. Guidance implies another year of healthy growth, and the franchise has room to keep compounding via several levers: premium customer acquisition (including younger cohorts), resilient spend among affluent consumers, continued build-out of travel experiences and dining (including Centurion Lounges and restaurant initiatives), and disciplined risk management.

On valuation, shares at around $325 trade at roughly 21 times the midpoint of 2025 earnings guidance. That's a reasonable price-to-earnings ratio for a payments and premium lifestyle platform with double-digit card-fee growth, record spend, and a long runway to add value to membership.

Of course, there are some risks to bear in mind. A slower macro backdrop could temper spending growth, and a poorly received value and pricing change for the U.S. consumer and business Platinum card could spur churn. But taken together -- reaffirmed guidance, strong fee momentum, stable credit, and a clear catalyst in the Platinum rollout -- the return profile looks compelling.

There is no guarantee that the stock will react positively on launch day. Over a multiyear horizon, though, this looks like a great entry point for investors seeking a high-quality compounding business at a reasonable price.

Should you invest $1,000 in American Express right now?

Before you buy stock in American Express, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $640,916!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,012!*

Now, it’s worth noting Stock Advisor’s total average return is 1,052% — a market-crushing outperformance compared to 188% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 8, 2025

American Express is an advertising partner of Motley Fool Money. Daniel Sparks and his clients have positions in American Express. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.