American Express vs Discover Financial Services: Revenue, Profit and Business Model
American Express reported $72.2B of revenue in FY2025 and $10.8B of net income. Discover Financial Services reported $17.9B of revenue in FY2024 and $4.5B of net income.
Latest financial snapshot
American Express
- Latest revenue
- $72.2B (FY2025)
- Net income
- $10.8B
- Net margin
- 15.0%
- Revenue growth
- +8.2% a year, FY2016–FY2025
Discover Financial Services
- Latest revenue
- $17.9B (FY2024)
- Net income
- $4.5B
- Net margin
- 25.3%
- Revenue growth
- +12.7% a year, FY2020–FY2024
Financial summary
American Express
American Express reported $72.2 billion in total revenues net of interest expense for FY2025, up 10 percent, and $10.8 billion of net income, or $15.38 per diluted share. The mix is less fee-only than its premium image suggests: discount revenue on merchant transactions was $37.4 billion, net interest income on card member loans was $17.4 billion, net card fees were $10.0 billion and service fees and other revenue were $7.5 billion. Growth in 2025 came disproportionately from the two smaller lines, with net card fees up 18 percent and net interest income up 12 percent against 6 percent growth in discount revenue. Return on average equity was 33.9 percent, the net write-off rate on consumer and small business loans and receivables was 2.0 percent, and the company declared $3.28 per share in dividends while average diluted shares fell from 713 million to 696 million.
Discover Financial Services
Discover's reported revenue net of interest expense rose from $11.1 billion in 2020 to $17.9 billion in 2024. Net income was $4.5 billion in 2024 ($17.72 per diluted share), helped by a $381 million gain on the sale of its private student loan portfolio, after falling to $2.8 billion in 2023 when credit costs rose and the card misclassification issue surfaced. Total loans ended 2024 at $121.1 billion, including $102.8 billion of card loans. Discover stopped filing standalone annual reports after the May 2025 acquisition; its results are now reported inside Capital One.
Revenue and profit by year
American Express
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $72.2B | $10.8B | 15.0% | +9.5% | Source |
| FY2024 | $65.9B | $10.1B | 15.4% | +9.0% | Source |
| FY2023 | $60.5B | $8.4B | 13.8% | +14.5% | Source |
| FY2022 | $52.9B | $7.5B | 14.2% | +24.7% | Source |
| FY2021 | $42.4B | $8.1B | 19.0% | +17.4% | Source |
| FY2020 | $36.1B | $3.1B | 8.7% | -17.1% | Source |
| FY2019 | $43.6B | $6.8B | 15.5% | +8.0% | Source |
| FY2018 | $40.3B | $6.9B | 17.2% | +9.4% | Source |
| FY2017 | $36.9B | $2.7B | 7.5% | +4.1% | Source |
| FY2016 | $35.4B | $5.4B | 15.2% | — | Source |
Discover Financial Services
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $17.9B | $4.5B | 25.3% | +13.4% | Source |
| FY2023 | $15.8B | $2.8B | 17.7% | +19.5% | Source |
| FY2022 | $13.2B | $4.3B | 32.7% | +9.7% | Source |
| FY2021 | $12.1B | $5.4B | 45.0% | +8.7% | Source |
| FY2020 | $11.1B | $1.1B | 10.1% | — | Source |
Where the revenue comes from
American Express
- Discount Revenue (Merchant Fees)~52%
Discount revenue is the fee American Express charges merchants on card transactions. It was $37,401 million in FY2025, up 6 percent, and equalled 2.24 percent of billed business. It remains the largest revenue line and moves with billed business, merchant mix and geography.
- Net Interest Income~24%
Net interest income is earned on card member loans and receivables after funding costs. It was $17,364 million in FY2025, up 12 percent, on a net interest yield of 8.1 percent, helped by growth in revolving balances and by lending features added to charge card products.
- Net Card Fees~14%
Net card fees are the annual fees on consumer, small business and corporate cards. They reached $9,993 million in FY2025, up 18 percent, at an average of $117 per proprietary card in force, driven by new acquisitions on fee-paying products and by the 2025 Platinum refresh.
- Service Fees and Other Revenue~10%
Service fees and other revenue was $7,471 million in FY2025, up 10 percent. It covers network partnership revenue from cards issued by partner banks, foreign currency fees on cross-currency spending, loyalty coalition and merchant service fees, delinquency fees, travel commissions and income from equity method investments.
Discover Financial Services
- Card loan net interest incomeMajority
Interest earned on credit card loans ($102.8 billion at year-end 2024) less deposit and funding costs.
- Personal loan interestMinority
Interest on unsecured personal loans.
- Discount, interchange and network feesMinority
Merchant discount and interchange on Discover cards plus PULSE and Diners Club processing fees.
Business model and strategy
American Express
How it makes money
American Express runs a closed-loop payments business: it issues the card, owns the network, underwrites the credit and contracts with the merchant. Visa and Mastercard only move the transaction between an issuing bank and an acquiring bank, so they never see both sides of a purchase.
Growth strategy
Amex's growth strategy is aggressively focused on capturing the next generation of wealthy spenders: Millennials and Gen Z. They have successfully revamped their well-known Platinum and Gold cards with perks tailored specifically for younger demographics (like Uber credits and dining rewards), resulting in rapid growth among younger cohorts.
Competitive advantage
American Express competes on the spending power of its card members rather than on price or ubiquity. Average spending per proprietary basic card member was $25,453 in 2025, which is the argument it makes to merchants who pay a higher discount rate, an average of 2.24 percent of billed business.
Discover Financial Services
How it makes money
Discover makes money two ways. As a bank, it lends to consumers through Discover-branded credit cards and personal loans and earns net interest income on those balances, funded largely by online savings and CD deposits rather than branches. As a network, it earns discount and interchange revenue when merchants accept Discover cards and processing fees when banks route debit and ATM transactions over PULSE.
Growth strategy
Before the deal, Discover had pulled back on new account growth while it fixed compliance problems. Under Capital One the strategy has shifted to network scale: migrating Capital One debit cards to Discover (about 25 million done by mid-2026), testing Capital One credit cards on the network, and widening acceptance abroad.
Competitive advantage
Discover's advantage is ownership of payment rails. Very few US issuers control their own network, so Discover could keep merchant fees on its own card volume and offer network services to other banks through PULSE. Combined with low-cost online deposits and a no-annual-fee, cash back brand with US-based customer service, that made it a strategic target.
Questions about American Express vs Discover Financial Services
Which company has higher revenue — American Express Company or Discover Financial Services?
American Express Company reported $72.2B (FY2025), while Discover Financial Services reported $17.9B (FY2024). By last reported revenue, American Express Company is the larger business, with Discover Financial Services reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of American Express Company vs Discover Financial Services?
American Express Company's market capitalisation stands at $205.8B, while Discover Financial Services's is $51.8B. American Express Company carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Discover Financial Services.
Which is more financially efficient — American Express Company or Discover Financial Services?
American Express Company generates $940k / employee in revenue per employee, while Discover Financial Services generates $853k / employee. American Express Company shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do American Express Company and Discover Financial Services make money?
American Express Company and Discover Financial Services generate revenue in fundamentally different ways. American Express Company: American Express runs a closed-loop payments business: it issues the card, owns the network, underwrites the credit and contracts with the merchant. Discover Financial Services: Discover makes money two ways.
Which company is valued higher relative to revenue — American Express Company or Discover Financial Services?
On a price-to-sales (P/S) basis, American Express Company trades at 2.8x P/S and Discover Financial Services at 2.9x P/S. Discover Financial Services commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to American Express Company. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is American Express Company bigger than Discover Financial Services?
By last reported revenue, American Express Company ($72.2B (FY2025)) is the larger company compared to Discover Financial Services ($17.9B (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the American Express vs Discover Financial Services overview