American Express Raises Full-Year Profit Forecast and Cuts 5% of Workforce to Prepare for AI

American Express posted record third-quarter 2026 revenue of $20.1 billion, up 9% year over year, and raised its full-year earnings outlook, but the results were overshadowed by an announcement that the company will eliminate roughly 3,500 jobs, or about 5% of its global workforce, sending shares lower on the day.

Adjusted earnings per share came in at $4.68, beating the $4.48 consensus estimate by $0.20 and rising 13% from a year earlier. GAAP EPS jumped 31% to $5.42, a figure boosted by a $982 million pretax gain, equivalent to $751 million after tax, from the sale of the company's stake in Global Business Travel Group. Net income rose 28% to $3.7 billion. Revenue of $20.06 billion fell just short of the $20.12 billion analyst estimate, and billed business of $454 billion missed the $456.93 billion consensus, though it still grew 8% year over year. Total network volume reached $517.9 billion, also below expectations. Provisions for credit losses fell 23% year over year to $1.0 billion, and the net write-off rate improved to 1.8% from 1.9% a year earlier, reflecting the resilience of the company's affluent cardholder base, which has continued spending heavily on travel and shopping despite elevated interest rates and sticky inflation.

American Express raised its full-year 2026 adjusted EPS guidance to $17.60 to $17.90, up from a prior range of $17.30 to $17.90, and set a GAAP EPS target of $18.30 to $18.60. The company reaffirmed its 10% annual revenue growth target, which CEO Stephen Squeri said would mark a tenth consecutive year at that level.

Alongside the earnings, Squeri announced the workforce reduction on the third-quarter conference call, citing a need to become leaner and more agile and to prepare for artificial intelligence to take over more internal processes. The company is taking a $336 million restructuring charge related to the cuts. American Express had approximately 77,000 employees at the end of 2025, putting the affected headcount at roughly 3,500 people. Shares fell approximately 2% to 3% on Friday, extending year-to-date losses to around 14.5%, and contributed to a decline of more than 500 points in the Dow Jones Industrial Average. Jefferies reiterated a Hold rating on the stock following the results.