Quick overview

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Shares of American Express have surged nearly 25% in 2025, helping lift the Dow Jones Industrial Average, which is up about 13% over the same period.

American Express has emerged as one of the standout performers of 2025, rising 24.6% and ranking among the top gainers in the Dow in a year marked by strong sector rotation and shifting investor preferences.

The broader market backdrop has been positive, albeit uneven. While the Dow Jones climbed toward the 48,000 level, gains were not led by traditional tech stocks but rather by sectors more closely tied to the real economy, such as financials and industrials. In that environment, American Express clearly stood out.

The rally in the company—one of Warren Buffett’s favorite holdings, accounting for roughly 20% of Berkshire Hathaway’s portfolio and its second-largest position after Apple—has been supported by strong financial results.

Strong financial performance

In 2025, American Express reported revenue of $72.2 billion, up 10% year-over-year, while net income reached $10.8 billion, a 7% increase. Earnings per share (EPS) came in at $15.38, marking a 15% adjusted gain and extending a multi-year streak of double-digit growth.

Performance was also underpinned by robust consumer spending. In the fourth quarter alone, billed business totaled $445.1 billion, up 9% year-over-year. Revenue for the same period reached $18.98 billion, also rising 10%.

The trend remained consistent throughout the year. In the second quarter, for example, the company had already posted record revenue of $17.9 billion and spending volumes exceeding $416 billion.

Focus on premium customers

A key driver of American Express’s business model has been its focus on high-income customers, who have maintained strong spending levels despite a high interest rate environment. This segment has shown resilience, supporting growth relative to more cycle-sensitive models.

Additionally, a structural shift in its customer base is underway, with spending from millennials and Generation Z gaining importance within its U.S. consumer business.

Compared with peers, American Express has also outperformed. While its shares have gained करीब 25% this year, Visa is up around 11%, and Mastercard has risen roughly 8.4%, reinforcing its relative positioning within the payments sector.