In the first quarter, American Express exceeded profit expectations, thanks to its focus on affluent customers. The company is now looking to expand its reach to small businesses as well, with more details set to be revealed at its upcoming investor day. Despite economic uncertainty, American Express has been able to benefit from its high-income clientele, which has helped shield it from the challenges faced by its competitors.

William Blair analyst Cristopher Kennedy believes that American Express has been successful in targeting premium consumers and small and medium enterprises (SMEs), expanding its network and enhancing its value proposition. The company is confident in its ability to continue growing, with multiple strategies in place to support its goals. Consumer spending in the U.S. increased by 8% while spending by SMEs rose by 1%.

CEO Stephen Squeri expressed his optimism about the future, particularly when it comes to the SME sector, which he sees as a growth opportunity. Despite potential industry changes like the acquisition of Discover Financial by Capital One Financial, American Express remains committed to executing its successful strategy. The company’s investor day will provide insights into how it plans to grow in both the premium consumer and SME sectors while also exploring revenue opportunities with Gen Z and millennial customers. With a strong showing in the first quarter, American Express is well-positioned for continued success moving forward.