American Express (NYSE:AXP) shares dropped more than 3% on Friday despite the company reporting better-than-expected Q2 income, attributed to the continued spending of its younger affluent customers, despite the presence of elevated interest rates and persistent inflation.

Q2 EPS came in at $2.89, surpassing the Street estimate of $2.81 by $0.08. Additionally, the company's revenue for the quarter amounted to $15.05 billion, slightly lower than the Street estimate of $15.41 billion.

Regarding their future outlook, American Express reaffirmed its earnings guidance for the fiscal year 2023, expecting EPS to be in the range of $11.00 to $11.40, compared to the Street estimate of $11.11. They also maintained their projected revenue growth of 15% to 17%.