NEW YORK — American Express raised its revenue-growth outlook Friday after cardholders continued spending on travel, dining and everyday purchases, offering another sign that higher-income consumers remain resilient despite elevated interest rates and economic uncertainty.

The company reported second-quarter revenue of $19.6 billion, up 10% from a year earlier, while billed business climbed 9% to $455.8 billion. Based on that performance, American Express increased its full-year revenue growth forecast to between 9% and 10%, up from its previous projection of 8% to 10%.

For businesses, the results suggest that discretionary spending among affluent households remains healthy, benefiting airlines, hotels, restaurants and luxury retailers that rely on premium customers. Small businesses that serve higher-income consumers may also continue to see stronger demand than businesses targeting more price-sensitive shoppers.

Investors, however, focused on rising expenses. Marketing costs, customer rewards and technology investments continued climbing, prompting American Express to leave its earnings forecast unchanged despite stronger revenue. The stock moved lower following the report as Wall Street looked for larger profit gains.

The results reinforce a growing theme this earnings season: consumer spending has not collapsed, but companies are increasingly finding that maintaining growth requires heavier investment, making profitability harder to improve.

American Express said it expects spending trends among its premium customer base to remain solid through the second half of the year while continuing to invest in new products and digital services.

JBizNews Desk | Wall Street

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