American Express Counts on Millennials to Power 2026 Spending

American Express released its latest earnings results on Friday (Jan. 30), closing 2025 with a familiar refrain and as it claimed a demographic edge in card spending: younger card members are carrying more of the load.

Executives said millennials and Generation Z now represent the largest share of U.S. consumer spending on the network, underscoring how the company’s premium strategy is reshaping both who spends and how.

Chief Financial Officer Christophe Le Caillec told analysts on Friday that momentum from younger customers continued in the fourth quarter, adding the average age of new customers is 33 on the U.S. consumer Platinum card and 29 on the Gold card, giving American Express “a long runway to grow our relationships with these customers over time.”

That generational shift showed up across spending categories as fourth quarter revenues gained 10% to just under $19 billion. Le Caillec said total billed business rose 8% on a foreign-exchange adjusted basis in the quarter, matching the prior period. Retail spending increased 10%, luxury retail climbed 15%, restaurant spending advanced 9%, and airline and lodging volumes remained broadly stable. Dining stood out, with spend at U.S. restaurants by U.S. consumer customers up more than 20%, a lift management attributed in part to its restaurant platforms and cardholder engagement.

International markets added to the momentum, with spending up 12% FX-adjusted, while transactions grew 9%, reflecting what management described as sustained engagement from both consumer and business customers. Looking at the opening weeks of January, Le Caillec said the company continued to see “good momentum.”

Premium Cards Pull Younger Customers In

Chairman and CEO Stephen Squeri framed the quarter as an extension of a multiyear push toward fee-based, premium products. Squeri said demand for refreshed Platinum products prompted American Express to redirect marketing dollars away from lower-cost cash-back cards toward fee-paying portfolios.

Management also pointed to credit performance as a signal of portfolio quality, noting that delinquency and write-off rates remain below pre-pandemic levels.

Engagement followed acquisition. Squeri highlighted faster uptake of card benefits among new customers and a gradual but material rise among existing members, aided by digital tools such as the Platinum app. He said travel bookings jumped 30% in the fourth quarter, tying that increase directly to the Platinum refresh and cardholder participation.

Business Spending Holds, With Small Firms Faring Better

On the commercial side, executives drew a distinction between small businesses and larger middle-market firms. Squeri said small business spending remained “really, really strong,” while middle-market activity showed more softness, a pattern he described as consistent with broader industry trends.

International business volumes stayed resilient, and management reiterated plans to expand digital tools and expense management capabilities for business customers. Squeri characterized the small business and middle-market arena as increasingly competitive, but said American Express’ scale and product refreshes position it to defend share.

American Express reaffirmed its outlook for 2026. Management expects revenue growth of 9% to 10%.  Shares were down about 1.8% in late day trading on Friday.

Discussion on Interest Rate Caps

Policy discussions surfaced during the Q&A, with analysts pressing management on proposals to cap credit card interest rates at 10%. Squeri rejected the idea in blunt terms.

“I don’t think a 10% credit card cap is the answer,” he said. “I think it would reduce the number of cards ultimately in the marketplace. I think it would reduce line sizes. America pretty much runs on credit. I think that would impact small businesses and so forth, and it just has this sort of effect of a downward spiral from my perspective.”