Curious about how a financial giant like American Express performed last year?
Are you someone who likes to keep an eye on the big players in the financial world? Or perhaps you're an investor trying to gauge the health of a company, or even a customer simply curious about the fiscal strength of the brand behind your favorite card. Whatever your reason, understanding the financial performance of a company like American Express can provide valuable insights.
This comprehensive guide will walk you through American Express's financial results for last year (which refers to fiscal year 2024, as current data points to this as the most recently completed full fiscal year). We'll break down the key figures, what they mean, and provide a clear, step-by-step approach to understanding these results.
Step 1: Pinpointing "Last Year" for Financial Reporting
First things first, when we talk about "last year" for a large corporation like American Express, we're usually referring to their most recently completed fiscal year. Fiscal years don't always align with the calendar year (January 1st to December 31st).
For American Express, their fiscal year aligns with the calendar year. This means "last year" for them, as of July 2025, refers to the full fiscal year 2024 (January 1, 2024, to December 31, 2024). Companies typically release their annual reports and full-year earnings in late January or early February of the following year. This means we have the complete picture for 2024.
Step 2: Unveiling the Top-Line Growth: Revenue
Revenue is the total amount of money a company generates from its core business operations. For American Express, this primarily comes from:
Net interest income: Earnings from loans (like credit card balances).
Card Member spending: Fees from transactions made with American Express cards.
Net card fees: Annual fees paid by cardholders.
Merchant discount revenue: Fees charged to merchants for accepting Amex cards.
Key Findings for American Express in Fiscal Year 2024:
Record Revenues! American Express reported record revenues of $66 billion for the full fiscal year 2024.
Strong Growth: This represents a significant increase, up 9 percent compared to 2023. On an FX-adjusted (foreign exchange adjusted) basis, the growth was even higher at 10 percent, indicating strong underlying business momentum globally.
What does this mean? A strong increase in revenue suggests that American Express is successfully attracting new customers, seeing higher spending from existing card members, and effectively monetizing its services. It's a key indicator of business expansion and market penetration.
Step 3: Diving into the Bottom Line: Net Income (Profit)
While revenue shows how much money came in, net income (or profit) shows how much money the company actually made after all expenses, taxes, and other deductions. This is often seen as the ultimate measure of a company's profitability.
Key Findings for American Express in Fiscal Year 2024:
Record Net Income! American Express achieved a record annual net income of over $10 billion in 2024.
Impressive Profit Growth: This represents a substantial 25 percent increase year-over-year compared to 2023. This growth also includes a gain from the sale of Accertify, a fraud prevention and digital identity platform.
Earnings Per Share (EPS): Diluted earnings per share reached $14.01.
What does this mean? A significant jump in net income, especially alongside strong revenue growth, indicates efficient operations, effective cost management, and a robust business model. The increase in EPS is particularly good news for shareholders, as it means more profit allocated per outstanding share.
Step 4: Beyond the Headline Numbers: Deeper Dives
While revenue and net income are crucial, other metrics provide a more complete picture of American Express's performance.
Sub-heading: Card Member Spending and Acquisition
Record Card Member Spending: Worldwide billed business (spending on American Express cards issued by them) hit an astounding $1.55 trillion in 2024, a 6% increase over 2023.
New Card Acquisitions Soar: The company acquired a record 13 million new proprietary cards in 2024, a 6.6% increase from the previous year.
Millennial and Gen Z Power: Notably, Millennial and Gen Z consumers were their fastest-growing age cohort in terms of both new account acquisitions and card member spending. This demonstrates their success in attracting younger demographics.
Strong Net Card Fees: Net card fee revenue also saw strong growth, increasing by 16% to $8.4 billion in 2024.
What does this mean? These figures highlight the continued strong demand for American Express products and services. The growth in card member spending directly translates to higher transaction-based revenues, and the influx of new card members builds a foundation for future growth. The focus on younger demographics is a strategic move for long-term sustainability.
Sub-heading: Segment Performance
American Express operates across various segments. While a detailed breakdown would be extensive, here's a glimpse into where the revenue primarily comes from:
United States Consumer Services: This segment is consistently the largest contributor to American Express's revenue. In 2024, it accounted for approximately 47.45% of total revenue, generating $31.43 billion.
Commercial Services: This segment focuses on businesses and contributed approximately 23.94% of total revenue, reaching $15.86 billion.
International Card Services: This segment represents their global footprint, contributing around 17.3% of total revenue, or $11.46 billion.
Global Merchant and Network Services: This segment manages relationships with merchants and contributes about 11.3% of total revenue, approximately $7.48 billion.
What does this mean? Understanding segment performance helps in identifying which areas of the business are driving growth and where future opportunities or challenges might lie. The strong performance of the U.S. Consumer Services underscores the continued strength of the American consumer market for Amex.
Step 5: What to Expect Next (Guidance for 2025)
Companies often provide guidance for their future performance. American Express has already released its outlook for fiscal year 2025:
Revenue Growth: They expect revenue growth of 8% to 10% in 2025 compared to 2024.
Earnings Per Share (EPS): They anticipate EPS to be between $15.00 and $15.50.
What does this mean? This guidance suggests that American Express anticipates continued strong performance and growth in the coming year, which is a positive sign for investors and analysts.
Step 6: Where to Find This Information Yourself
Want to verify these numbers or dig even deeper? Here's how you can access this information directly:
American Express Investor Relations Website: This is the primary and most reliable source for official financial documents.
Navigate to the "Investor Relations" section of the American Express website.
Look for "Financial Reports," "Annual Reports (10-K)," or "Earnings Releases."
Specifically, search for the 2024 Annual Report (Form 10-K) and the Q4 2024 Earnings Release.
SEC Filings (EDGAR Database): The U.S. Securities and Exchange Commission (SEC) requires publicly traded companies to submit various financial reports.
Visit the SEC EDGAR database (search "EDGAR American Express").
Search for American Express (ticker symbol: AXP) and look for their 10-K filing for fiscal year 2024.
Reputable Financial News Outlets: Major financial news sources (e.g., The Wall Street Journal, Reuters, Bloomberg, Financial Times) will report on company earnings shortly after they are released. While they summarize, they usually cite the official company reports.
In Summary: A Stellar Year for American Express
American Express had an exceptionally strong fiscal year in 2024. They achieved record revenues of $66 billion and record net income of over $10 billion, demonstrating robust growth across key metrics, particularly in card member spending and new card acquisitions driven by younger demographics. The company's outlook for 2025 also projects continued positive momentum.
10 Related FAQ Questions:
How to find American Express's latest earnings report? You can find American Express's latest earnings report on their official Investor Relations website under the "Financial Reports" or "Earnings Releases" section.
How to understand the difference between revenue and net income for a company? Revenue is the total money earned from sales of goods or services before any expenses are deducted, while net income (profit) is what remains after all expenses, taxes, and other deductions have been subtracted from revenue.
How to interpret "FX-adjusted" growth in financial reports? "FX-adjusted" (Foreign Exchange adjusted) growth removes the impact of currency fluctuations, providing a clearer picture of the underlying business performance without the distortion of a stronger or weaker dollar.
How to know when American Express releases its annual results? American Express typically releases its full annual results (for the preceding fiscal year) in late January or early February of the following calendar year.
How to track American Express's stock performance? You can track American Express's stock performance (ticker symbol: AXP) on any major financial platform like Google Finance, Yahoo Finance, Bloomberg, or through your brokerage account.
How to understand "Earnings Per Share" (EPS)? Earnings Per Share (EPS) is a company's total earnings divided by the number of outstanding shares of its common stock. It indicates how much money a company makes for each share of its stock.
How to find historical financial data for American Express? Historical financial data for American Express can be found on their Investor Relations website, within their annual reports (10-K filings), or on financial data websites like Macrotrends or Companies Market Cap.
How to identify the main sources of revenue for American Express? The main sources of revenue for American Express are typically net interest income (from loans), card member spending (transaction fees), net card fees (annual card fees), and merchant discount revenue (fees from merchants accepting Amex cards).
How to compare American Express's performance to its competitors? To compare American Express's performance, you would look at similar financial metrics (revenue, net income, card spending, market share) for its main competitors such as Visa, Mastercard, and other major financial institutions.
How to access American Express's official annual report (10-K)? You can access American Express's official annual report (Form 10-K) directly from the U.S. Securities and Exchange Commission's (SEC) EDGAR database by searching for "American Express" or its ticker symbol "AXP."
