American Express (NYSE:AXP) Chief Financial Officer Christophe Le Caillec said the company is seeing “very strong and very consistent” spending trends across its customer base, pointing to continued momentum in premium products, travel and entertainment demand, and strong credit performance. Speaking in a post-earnings conference discussion, Le Caillec also addressed investor questions on new card acquisition trends, the Platinum Card refresh, international growth, and how the company is managing expenses and technology investments.
Spending trends and customer credit remain strong
Le Caillec said global spend was up “between 7% and 8%” during the year and noted a modest uptick in the second half. He highlighted strength in travel and entertainment spending, including front-of-cabin spend that was up 9% and lodging at luxury properties that was up 12%.
On credit, Le Caillec described the balance sheet of American Express customers as “incredibly strong,” with “very low write-off rate” and “very low delinquency rates” that have remained stable.
Credit Card Competition Act: “net neutral” view
Asked about the Credit Card Competition Act (CCCA), Le Caillec said American Express is “neutral” and “net neutral” on the proposal. He noted that the legislation would apply to four-party networks, while “the very vast majority” of American Express network volume is closed-loop, where the company is the issuer, merchant acquirer, and the entity that clears and settles transactions.
He also said the ultimate market outcome is difficult to predict because issuers may select a second network that maximizes issuer economics, while merchants would seek to steer transactions toward lower-cost routing, creating competing incentives. He said the company is not expecting a meaningful impact to its business.
New card acquisitions and shift toward higher-fee accounts
Le Caillec addressed investor focus on the sequential decline in new cards acquired in the fourth quarter of 2025 compared to the third quarter. He said marketing outcomes are not linear and can vary due to limited time offers and changing spending levels on marketing programs. He also noted that a similar sequential decline occurred in the prior year.
More importantly, he emphasized that American Express has been prioritizing fee-paying products—particularly Platinum—over maximizing raw new card counts. In his explanation, he pointed to a sharp increase in the average fee paid per newly acquired account in the fourth quarter, which he said was driven by:
- Strong demand for fee-paying products, “especially for the Platinum Card,” raising the average fee per account.
- A deliberate reallocation of resources “towards meeting that demand on the Platinum side.”
As a rule of thumb, Le Caillec said a Platinum account spends about 10 times what a Blue Cash Everyday account spends, underscoring why the company was willing to accept lower new card volumes in exchange for higher-value acquisition.
Platinum refresh: higher demand, strong retention, rising engagement
Le Caillec said the current Platinum refresh is “more successful” than recent refreshes for Gold or the Delta co-brand, citing strong acquisition and engagement. He said American Express tracks weekly metrics across demand, acquisition efficiency, and engagement, including spend and retention among existing card members.
On efficiency, he said the company achieved “some of the lowest cost per account” in the fourth quarter over the last two years. He also said repricing of the existing Platinum “back book” began in January, with retention rates already “incredibly high”—around 99% for the consumer product and roughly 98% for the small business product.
Le Caillec also described increased engagement with American Express services tied to the refreshed value proposition. He said:
- Travel bookings increased 30% year-over-year in the fourth quarter, which he attributed to the new Platinum value proposition and the travel app.
- U.S. consumer spending at Resy restaurants was up 20%.
On card fee growth, he reiterated that repricing began for new applicants in mid-September, while repricing for tenured card members started in January and is amortized over 12 months. He said the fee tailwind should build through the year, peak in the fourth quarter when the full portfolio reflects the new price point, and “moderate in 2027.”
International growth, Center acquisition, and tech-driven efficiency
Le Caillec said international remains a major growth opportunity and is “accretive to pretty much every metric,” including credit and average card fees. He said the company is pursuing the same strategy abroad as in the U.S.: focusing on premium products and younger card members. He noted that Gen Z and millennial growth in international was 20% in the fourth quarter of 2025, compared with 15% in the U.S.
He attributed international momentum to a lower starting share—about 6% across major markets—and ongoing expansion in acceptance. He said American Express has about 170 million merchants that welcome the network but is still working toward parity coverage internationally.
On the Center acquisition, Le Caillec said expense management has become an increasingly important need for middle-market small and medium-sized businesses. He said American Express chose to acquire Center rather than build a solution internally to accelerate development and is working on integration. He said the company expects to go to market in 2026, later in the year, without providing a specific date.
Le Caillec also discussed expense trends and investments, including expectations for variable customer engagement (VCE) expenses at 44% of revenues in 2026. He emphasized that premiumization is a key driver of higher VCE, largely because rewards costs move with spend, and he described VCE as a natural “hedge” that can fall if spending slows. He added that the Platinum refresh created a “step function” increase in the VCE ratio due to the product’s scale.
Separately, he said the company highlighted its annual tech spend—about $5 billion—because investors ask how American Express can balance rising VCE with mid-teen growth in card member spending (CPS). He said operating expenses as a ratio of revenue improved from 26% to 22% over the last three years, which he attributed to operational efficiency and leverage, with technology as a major contributor.
He pointed to the company’s app and digital servicing capabilities as drivers of efficiency, noting that calls per account have declined as customers self-serve tasks like disputes, card freezes, replacements, and upgrades. He also cited differences by generation, stating that 63% of Gen Z interactions are online versus 13% for Baby Boomers, while Gen Z and millennials have the highest satisfaction.
In discussing capital return, Le Caillec said American Express evaluates buybacks and has been pleased with past returns relative to cost of capital. He referenced revenue growth in the last three years of 10% to 11%, guidance of 9% to 10% for the coming year, and return on equity of 36%. He said the company plans to buy back more shares and expects to continue doing so, while also remaining open to acquisitions such as Center and Resy.
About American Express (NYSE:AXP)
American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.
American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.
