American Express Reports Strong Q2 Earnings Despite Revenue Miss

American Express (AmEx) reported strong quarterly results with record card member spending, but disappointed investors by keeping its full-year profit forecast unchanged. Despite reaching a record high in consumer spending, AmEx's lackluster forecast reflects the uncertain economic environment and lenders' cautious approach towards potential defaults. The company's total provisions for credit losses increased significantly compared to the previous year. However, AmEx's young and affluent customer base has helped mitigate the impact of rising prices, with Millennial and Gen Z consumers representing the fastest-growing customer cohort. AmEx's shares fell 4.4% in premarket trading following the announcement.