American Express (NYSE: AXP) is continuing its winning ways. Shares are up 18% in 2025 (as of Oct. 20), outpacing the broader S&P 500. They recently got a lift after the business reported third-quarter revenue and earnings per share that came in ahead of Wall Street estimates.
Those two key headline figures are certainly important to pay attention to. However, every American Express investor should keep a close eye on this number.
Some of the best companies in the world benefit from pricing power, or the ability to successfully ask customers to pay more over time. American Express possesses this attractive quality.
The average fee it earned per active card (on an annualized basis) in the third quarter was $119. This metric represents the membership dues that its customers pay to have the right to own an American Express card. It has increased consistently over the years, having climbed 72% since Q3 2020.
American Express is able to charge high annual fees because of its powerful brand position that draws in higher-income consumers. What’s more, the business offers its cardholders incredibly valuable perks and rewards.
For instance, the latest Platinum card refresh introduced new shopping credits at Lululemon and Resy restaurants. This helped drive twice as many average weekly sign-ups for new cards than prior to the update.
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