American Express — Income Statement, Cash Flows & Balance Sheet
Is American Express profitable?
American Express delivered its strongest earnings on record in 2025, with revenue and net income both growing at a double-digit pace.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total revenues net of interest expense | $65,949M | $72,229M | +9.5% |
| Net income | $10,129M | $10,833M | +7.0% |
| Diluted EPS | $14.01 | $15.38 | +9.8% |
| Net income margin | 15.4% | 15.0% | −0.4 pp |
Revenue growth outpaced the modest dip in margin, and earnings per share grew faster than net income because American Express bought back shares throughout the year, reducing the share count.
Discount revenue (transaction fees from merchants) and net card fees (annual membership fees) are the two biggest growth engines.
| Revenue Line | 2024 | 2025 | Change |
|---|---|---|---|
| Discount revenue | $35,192M | $37,401M | +6.3% |
| Net card fees | $8,449M | $9,993M | +18.3% |
| Net interest income | $15,543M | $17,364M | +11.7% |
Net card fees are surging as American Express refreshes its premium card products and attracts higher-spending customers willing to pay larger annual fees. Net interest income is also climbing as the loan book grows.
Where does American Express's revenue come from?
U.S. Consumer Services is the largest segment, but International Card Services recorded the sharpest pretax income growth.
| Segment | Pretax Income 2024 | Pretax Income 2025 | Change |
|---|---|---|---|
| U.S. Consumer Services (USCS) | $6,377M | $6,810M | +6.8% |
| Commercial Services (CS) | $3,505M | $3,668M | +4.7% |
| International Card Services (ICS) | $1,031M | $1,603M | +55.5% |
| Global Merchant & Network Services (GMNS) | $4,398M | $3,968M | −9.8% |
ICS nearly doubled its profit contribution as international card spending accelerated. GMNS slipped modestly, partly because the prior year included a one-time $531 million gain on the sale of fraud-prevention subsidiary Accertify — without that boost, the comparison looks more dramatic than the underlying business warrants.
Does American Express generate cash?
American Express is a strong cash generator, with operating cash flow rising sharply in 2025.
| Cash Flow Item | 2024 | 2025 | Change |
|---|---|---|---|
| Net cash from operating activities | $14,050M | $18,428M | +31.2% |
| Capital expenditures (premises & equipment) | $(1,911M) | $(2,425M) | +26.9% |
| Share repurchases | $(6,020M) | $(5,814M) | −3.4% |
| Dividends paid | $(1,999M) | $(2,271M) | +13.6% |
Operating cash flow comfortably covered both capital spending and the combined $8.1 billion returned to shareholders through buybacks and dividends. The step-up in capital expenditures reflects continued investment in technology and lounge infrastructure.
How strong is American Express's balance sheet?
American Express carries significant debt, but it is well-capitalised by regulatory standards and holds a large liquidity buffer.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Long-term debt | $49,715M | $56,387M | +13.4% |
| Customer deposits | $139,413M | $152,488M | +9.4% |
| Cash and equivalents | $40,640M | $47,792M | +17.6% |
| CET1 ratio (American Express Co.) | 10.5% | 10.5% | Flat |
Long-term debt grew as American Express issued new bonds to fund loan growth, but the regulatory CET1 ratio (a key measure of a bank's capital cushion) held steady at 10.5%, well above the 4.5% minimum requirement. The near-$48 billion cash pile provides ample liquidity headroom.