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The New Face of Premium Spending
American Express has cracked the code on engaging younger affluent consumers, with millennial and Gen Z Platinum card members emerging as the driving force behind the company’s record-breaking third-quarter 2025 results. CEO Steve Squeri’s revelation that these younger members are “very comfortable paying for its exceptional value” signals a fundamental shift in how premium financial services are perceived by the next generation of high earners.
The numbers speak volumes: net income surged 16% to $2.9 billion, while earnings per share jumped 19% to $4.14, comfortably exceeding analyst expectations. Total revenue reached an unprecedented $18.43 billion, marking an 11% increase that propelled the company’s shares upward by 7%. This performance demonstrates how strategic targeting of younger demographics can yield substantial returns in the premium financial services sector.
The Demographic Revolution in Premium Spending
What makes these results particularly noteworthy is the demographic transformation occurring within American Express’s customer base. Millennials and Gen Z now account for 36% of total card member spending—matching Generation X’s contribution—while conducting 25% more transactions on average than older customers. This statistic reveals not just spending power, but engagement levels that surpass previous generations at similar life stages.
The success of American Express reflects broader market trends in consumer behavior, where premium experiences and products are increasingly valued by younger affluent consumers. This aligns with findings from Moody’s Analytics showing that the top 10% of households accounted for nearly 50% of all consumer spending in the second quarter of 2025. The concentration of spending power among affluent households creates fertile ground for premium card providers who understand how to deliver perceived value.
Strategic Product Evolution
Central to American Express’s success has been its calculated evolution of the Platinum card from a travel-centric product to a comprehensive lifestyle companion. “When Platinum launched over 40 years ago, it was initially designed for well-established, affluent, frequent travelers,” Squeri explained during the earnings call. “It has evolved into the premium lifestyle card that it is today, with a wider range of benefits and experiences that appeal broadly across generations.”
The recent refresh of the U.S. Consumer Platinum Card and Business Platinum Card represents what Squeri described as the “strongest rollout the card has seen,” with new account acquisitions doubling compared to pre-refresh levels. The company’s strategy of regular product updates—over 200 refreshes globally since 2019—has proven effective in maintaining relevance and driving engagement across customer segments.
These strategic updates reflect how companies are adapting to industry developments in consumer expectations, particularly among digitally-native younger consumers who value both luxury and convenience.
Understanding the Younger Affluent Mindset
The spending habits of wealthy millennials and Gen Z reveal distinct preferences that differentiate them from previous generations. While traditional premium cardholders prioritized travel benefits above all else, younger affluent consumers seek a more balanced portfolio of perks spanning wellness, entertainment, delivery services, and digital experiences.
This shift in consumer priorities has created opportunities for companies across sectors to capitalize on premium demand. As Federal Reserve Governor Chris Waller noted, we’re seeing a “two-tier” effect in the economy, with premium producers successfully passing through price increases to their “price-insensitive” affluent consumers while mainstream brands struggle with price sensitivity among lower-income segments.
The phenomenon extends beyond financial services, with Delta Air Lines recently confirming that its premium offerings are set to generate more revenue than the main cabin in 2026, a year ahead of schedule. Delta executives discussed an “inflection” in main cabin demand, with premium products transforming from loss leaders to highest-margin offerings.
Global Expansion and Future Outlook
The American Express success story isn’t confined to the United States. CFO Christophe Le Caillec noted that spending among Platinum cardholders outside the U.S. climbed 24%, indicating strong global appetite for premium financial products among young professionals. Perhaps most tellingly, 70% of new accounts acquired globally now come from fee-paying premium products, underscoring the profitability of this strategic direction.
This global expansion occurs alongside other significant related innovations in financial technology and consumer services. The company’s increased full-year 2025 outlook—projecting revenue growth between 9% and 10% and EPS of $15.20 to $15.50—reflects confidence in sustained spending trends among affluent consumers worldwide.
As companies navigate this new landscape of consumer preferences, understanding the intersection of digital convenience and premium experiences becomes increasingly crucial. The successful engagement of younger affluent consumers requires continuous innovation and adaptation to evolving expectations around value, benefits, and lifestyle integration.
Broader Economic Implications
The American Express results highlight a broader economic story about wealth concentration and its impact on consumer markets. With consumer spending accounting for two-thirds of all U.S. economic activity, the spending patterns of affluent households significantly influence corporate strategies and market dynamics.
This economic bifurcation creates both challenges and opportunities across sectors. While premium providers thrive, companies serving price-sensitive consumers face different pressures. Understanding these dynamics is essential for businesses navigating today’s complex economic landscape, particularly as they consider how recent technology and changing consumer behaviors will shape future market opportunities.
As American Express continues to return substantial value to shareholders—$2.9 billion this year through stock buybacks and dividends—the company’s success with younger affluent consumers offers a blueprint for premium brands seeking to engage the next generation of high-value customers.
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