American Express To Cut 5% Of Global Workforce; Raises 2026 EPS Outlook

American Express plans to eliminate approximately 5% of its global workforce as part of a restructuring initiative that included a $336 million charge and aims to improve organizational efficiency.

• American Express posted adjusted EPS of $4.68, beating expectations of $4.49, while revenue of $20.06 billion came in just below the $20.12 billion estimate, according to Fiscal AI.
• Provisions for credit losses fell to $1.0 billion from $1.3 billion a year earlier.
• Net interest income rose 10% year over year to $4.94 billion, supported by growth in cardmember balances.

American Express Company (AXP) shares drew investor attention on Friday after the company reported third-quarter results and raised its full-year 2026 earnings per share (EPS) outlook while maintaining its revenue growth forecast.

On the Q3 earnings call, CEO Stephen Squeri said American Express recorded a $336 million restructuring charge and plans to eliminate approximately 5% of its global workforce as it seeks to improve organizational efficiency and agility.

AXP shares traded 3.5% lower at the time of writing.

Earnings And Guidance

American Express reported Q3 adjusted EPS of $4.68, beating consensus forecast of $4.49, while revenue of $20.06 billion came in below the $20.12 billion estimate, according to estimates compiled by Fiscal AI.

Net income rose 28% year over year to $3.71 billion, while diluted EPS increased 31% to $5.42 from $4.14. Adjusted EPS excludes the gain from the sale of the company’s equity interest in Global Business Travel Group (GBTG), net of the portion used to fund restructuring. The sale generated a $982 million pretax gain, while the restructuring charge was $336 million pretax.

Net interest income(NII), the difference between interest earned and interest expended, rose 10% year-over-year to $4.94 billion, supported by growth in cardmember balances.

“Our business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality,” CEO Stephen Squeri said.

Spending, Credit And Margins

According to management’s earnings-call commentary, billed business increased 8% to $454 billion, with travel and entertainment spending up 10%, airline spending up 13% and restaurant spending up 9%.

However the company reported consolidated provisions for credit losses of $1.0 billion, down from $1.3 billion a year earlier, reflecting a reserve release compared with a reserve build in the prior-year quarter, partially offset by higher net write-offs. 

CFO Christophe Le Caillec said return on equity had risen from an average of 25%–28% about a decade ago to approximately 35% more recently. He also said the company expects variable customer engagement expense growth to moderate significantly in Q4 as it laps the prior-year U.S. Platinum Card refresh.

2026 Outlook

American Express maintained its full-year revenue growth forecast of 10% and raised reported EPS guidance to $18.30–$18.60, equivalent to 19%–21% growth. Adjusted EPS guidance rose to $17.60–$17.90, equivalent to 14%–16% growth.

Separately, Squeri said costs associated with remediation related to the Office of the Comptroller of the Currency (OCC) matter were not anticipated to affect 2027 guidance.

How Retail Views AXP 

On Stocktwits, retail sentiment turned ‘neutral’ from ‘bearish’ a day ago, amid ‘high’ message volumes. AXP was also among the platform’s trending tickers at the time of writing.

AXP shares have dropped over 17% year-to-date.

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