Amex Q2 results prove it’s still the heavyweight of high-end cards

With its complex web of travel perks, airport lounges, and points, the premium credit card scene is more competitive than ever.

But if the competition is heating up, luxury card stalwart American Express isn’t feeling it. The credit card company just beat profit expectations in its second quarter earnings, a feat powered by strong spending that shows Amex cardholders aren’t jumping ship for rivals.

With markets unstable and tariffs flying, Amex’s laser focus on wealthy customers likely provides a buffer against financial forces that can put a drag on lower income spenders. “We saw record Card Member spending in the quarter, demand for our premium products was strong,and our credit performance remained best in class,” American Express CEO Stephen Squeri said.

The company’s billed business for the quarter was $416.3 billion, besting analyst estimates of $412.8 billion in card member spending. Total revenue was up 9% to $17.9 billion, an increase the credit card issuer attributed to more customer spending, card feed growth, and higher income from revolving loan balances.

Fending off the competition

American Express is the old guard among premium rewards cards, but the company knows it needs to keep things fresh to stay competitive. The company recently announced its biggest card refresh to date, with reimagined perks designed to court the Gen Z and millennial cardholders who make up more than a third of its U.S. consumer spending.

“We’re going to take these Cards to a new level, not only in what they offer in travel, dining, and lifestyle benefits, but also in how they look and feel, to meet the evolving needs of our customers,” American Express Group President of U.S. Consumer Services Howard Grosfield said.

Amex isn’t sharing the specifics of its Platinum Card revamp yet, but other changes on the way soon reveal the company’s preference for bespoke perks designed to smooth air travel’s many jagged edges.

As Fast Company reported, Amex will roll out a pair of luxe updates that exemplify how the company plans to bolster its premium strategy. First, its Centurion Lounges will soon be revamped with rotating menus from James Beard Award-winning chefs, part of its new “Culinary Collective.” All 15 Centurion Lounges in the U.S. will feature the new menu items starting at the end of the month.

“You’d be lucky to get into each of their restaurants on a normal day,” American Express Travel President Audrey Hendley told Fast Company. “Now, you can try them all in one trip.”

Amex will also launch Sidecar, a new kind of lounge tailored to the needs of travelers seeking a short-term sanctuary, next year in Las Vegas’s Harry Reid International Airport. The lounge will offer small plates and table-side service designed to fit into a limited time slot.

“We’re seeing a significant segment of travelers who only spend 30 to 45 minutes in the lounge,” Hendley told Fast Company. “Sidecar is our way of honoring that time with the same level of care and service.

In the battleground of premium perks, everyone is vying to offer a little something special. Chase recently revamped its famed Sapphire Reserve card with a set of new travel credits and a higher annual fee. Citi is launching its own new premium card, the Citi Strata Elite, later this year to lure affluent customers away from the competition.

If those challengers pose a real threat to Amex, you wouldn’t know it. “Bring it on,” AmEx Chief Financial Officer Christophe Le Caillec told Reuters. “We’ve been in that space for decades and we have built assets that our competitors do not have.”