American Express CFO Highlights Increased Spending in Q4, Driven by Millennials and Gen Z

Younger Consumers Led the Charge, While Older Demographics Showed More Caution with Spending

American Express saw a significant uptick in spending toward the end of last year, as millennials and Gen Z cardholders ramped up their transactions, according to the company's Chief Financial Officer, Christophe Le Caillec, in a CNBC interview.

In its fourth-quarter earnings report, AmEx revealed an 8% year-over-year growth in card spending, a notable rebound from a slower pace earlier in the year. The growth had previously slowed to 6% in the second and third quarters, following a 7% increase in the first quarter.

While the overall uptick in spending was observed across all customer groups, it was particularly driven by younger generations. Spending among millennials and Gen Z surged by 16%, up from 12% in the third quarter. This contrasted with more cautious spending from older demographics. Gen X saw a more modest 7% increase in fourth-quarter spending, while baby boomers only recorded a 4% rise.

Le Caillec expressed optimism about the future, noting, “We had very strong growth from Gen Z and millennials, and that 2 percentage point acceleration gives us a lot of optimism for 2025.” He also mentioned that high spending levels have continued into the early weeks of this year.

Younger consumers are known to prioritize experiences over goods, and this trend was reflected in AmEx’s numbers. Travel and entertainment spending rose by 11% in Q4, compared to an 8% increase in goods and services. Airline spending saw a particularly strong boost, climbing 13%, with business and first-class fares up by 19%.

Despite this positive momentum, American Express shares dipped more than 2% in midday trading after the company’s earnings report came in slightly under expectations. However, shares of the New York-based financial giant have seen a strong upward trajectory in recent months, reaching a 52-week high just the day before.

In a research note, William Blair analysts led by Cristopher Kennedy expressed confidence in AmEx's growth, highlighting that accelerating billing growth could be a key driver for the company's target of at least 10% revenue growth. "We remain buyers on any pullback," the analysts wrote.