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Is AXP's Platinum Refresh Delivering Stronger Engagement and Spend?
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Key Takeaways
AXP's Platinum Card refresh is driving higher engagement and stronger billed business growth.
Enhanced travel rewards and lifestyle perks are increasing usage and attracting younger spenders.
American Express faces margin pressure as expenses rose 11% y/y from rewards and marketing investments.
American Express Company (AXP - Free Report) is reinforcing its premium strategy through the Platinum Card refresh, with a sharper focus on lifestyle-driven benefits across travel, dining and entertainment. The updated offering is designed to encourage more frequent usage and deepen relationships with affluent, experience-oriented customers.
Early indicators suggest a positive shift. Enhanced perks, including richer rewards on travel and curated experiences, appear to be encouraging more frequent card usage. AXP has consistently highlighted strong growth in billed business, where Platinum cards play a central role. In 2025, the company witnessed 8% year-over-year growth in billed business. In addition, younger cohorts are playing a bigger role, with higher transaction frequency helping drive more consistent, everyday usage.
The refresh is also aiding retention and strengthening top-of-wallet positioning. As cardmembers increasingly integrate the Platinum Card into their daily spending habits, American Express benefits from greater transaction volumes and improved customer lifetime value. This trend toward consistent engagement, instead of occasional big-ticket buys, bodes well for long-term growth.
However, the strategy comes with higher costs. Investments in rewards, partnerships and marketing have pushed operating expenses higher, creating some pressure on margins. Total expenses rose 11% year over year in 2025. While higher spending and fee income offer some cushion, sustaining the balance between growth and rising costs will be crucial.
Overall, the Platinum refresh is delivering improved engagement and spend trends, reinforcing AXP’s positioning in the premium card segment while supporting its broader growth strategy.
How Are Competitors Faring?
Some of AXP’s competitors in the payments space include Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) .
Mastercard continues to see strong momentum, supported by healthy consumer spending and cross-border activity. MA’s gross dollar volume rose 9% year over year in 2025, while net revenues witnessed 16% growth, reflecting both transaction growth and expansion into value-added services.
Visa remains resilient, benefiting from its scale and broad merchant network. V’s payments volume has increased 8% year over year in the first quarter of fiscal 2026, with net revenue growth of 15%, driven by steady consumer spending, strong cross-border transactions and strength in value-added services.
American Express’ Price Performance, Valuation & Estimates
Shares of AXP have risen 32.1% over the past year against the industry’s decline of 2.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, American Express trades at a forward price-to-earnings ratio of 16.80X, up from the industry average of 8.99X. AXP carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for American Express’ 2026 earnings is pegged at $17.53 per share, implying a 14% jump from the year-ago period.
View the Zacks #1 Rank List
Image: Bigstock
Is AXP's Platinum Refresh Delivering Stronger Engagement and Spend?
Key Takeaways
American Express Company (AXP - Free Report) is reinforcing its premium strategy through the Platinum Card refresh, with a sharper focus on lifestyle-driven benefits across travel, dining and entertainment. The updated offering is designed to encourage more frequent usage and deepen relationships with affluent, experience-oriented customers.
Early indicators suggest a positive shift. Enhanced perks, including richer rewards on travel and curated experiences, appear to be encouraging more frequent card usage. AXP has consistently highlighted strong growth in billed business, where Platinum cards play a central role. In 2025, the company witnessed 8% year-over-year growth in billed business. In addition, younger cohorts are playing a bigger role, with higher transaction frequency helping drive more consistent, everyday usage.
The refresh is also aiding retention and strengthening top-of-wallet positioning. As cardmembers increasingly integrate the Platinum Card into their daily spending habits, American Express benefits from greater transaction volumes and improved customer lifetime value. This trend toward consistent engagement, instead of occasional big-ticket buys, bodes well for long-term growth.
However, the strategy comes with higher costs. Investments in rewards, partnerships and marketing have pushed operating expenses higher, creating some pressure on margins. Total expenses rose 11% year over year in 2025. While higher spending and fee income offer some cushion, sustaining the balance between growth and rising costs will be crucial.
Overall, the Platinum refresh is delivering improved engagement and spend trends, reinforcing AXP’s positioning in the premium card segment while supporting its broader growth strategy.
How Are Competitors Faring?
Some of AXP’s competitors in the payments space include Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) .
Mastercard continues to see strong momentum, supported by healthy consumer spending and cross-border activity. MA’s gross dollar volume rose 9% year over year in 2025, while net revenues witnessed 16% growth, reflecting both transaction growth and expansion into value-added services.
Visa remains resilient, benefiting from its scale and broad merchant network. V’s payments volume has increased 8% year over year in the first quarter of fiscal 2026, with net revenue growth of 15%, driven by steady consumer spending, strong cross-border transactions and strength in value-added services.
American Express’ Price Performance, Valuation & Estimates
Shares of AXP have risen 32.1% over the past year against the industry’s decline of 2.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, American Express trades at a forward price-to-earnings ratio of 16.80X, up from the industry average of 8.99X. AXP carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for American Express’ 2026 earnings is pegged at $17.53 per share, implying a 14% jump from the year-ago period.
Image Source: Zacks Investment Research
AXP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.