American Express Beats Q3 Earnings Estimates, Raises 2026 Profit Outlook and Announces 3500 Job Cuts

American Express reported third-quarter 2026 results on October 23 that beat earnings expectations while falling just short on revenue, then raised its full-year profit forecast before announcing it will cut approximately 3,500 jobs, or 5% of its workforce. Adjusted EPS of $4.68 topped the $4.48 consensus estimate by a wide margin and rose 13% year over year, while GAAP EPS surged 31% to $5.42, boosted by a $982 million pretax gain on the sale of Global Business Travel Group. Revenue came in at $20.1 billion, up 9% from the prior year but slightly below the $20.12 billion Wall Street had expected.

Billed business, a key volume metric, reached $454 billion for the quarter, an 8% year-over-year increase but below the $456.93 billion estimate, the primary area of disappointment for investors. Total expenses of $14.5 billion came in under the $14.81 billion consensus, and provisions for credit losses fell sharply to $1.0 billion from $1.3 billion a year earlier, with the net write-off rate improving to 1.8% from 1.9%. The results underscored the resilience of Amex's affluent cardholder base, which continued to spend freely on travel and shopping despite elevated interest rates and sticky inflation.

The company raised its full-year 2026 GAAP EPS guidance to a range of $18.30 to $18.60, up from its prior outlook of $17.30 to $17.90, while setting adjusted EPS guidance at $17.60 to $17.90, roughly in line with analyst estimates of $17.63. Full-year revenue growth guidance was maintained at 10%. Shortly after the earnings release, Amex announced it would eliminate about 3,500 positions, equal to 5% of its total headcount, a move that sent shares down 12.8% year to date according to market data published at the time of the announcement.