American Express Earnings: Raises Profit Forecast
American Express earnings showed strong Q3 results and a guidance raise that may prompt investor repositioning as card spending stayed firm.
KEY TAKEAWAYS
- American Express raised full-year EPS guidance to $18.30-$18.60 reported and $17.60-$17.90 adjusted.
- Third-quarter adjusted EPS was $4.68 and revenue net of interest rose 9.0% to $20.1 billion.
- Recorded a $336 million restructuring charge tied to eliminating approximately 5.0% of global positions.
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American Express earnings on Oct. 23, 2026 showed stronger third-quarter results, prompting the company to raise its 2026 profit forecast and announce a restructuring that will cut jobs as affluent customers continued to spend on travel and dining.
Third-Quarter Results and Updated Guidance
American Express reported third-quarter revenue net of interest expense of $20.1 billion for the quarter ended Sept. 30, 2026, a 9.0% increase from a year earlier. Net income rose to $3.7 billion from $2.9 billion, while reported diluted earnings per share increased 31.0% to $5.42 from $4.14. Adjusted diluted EPS was $4.68, up from $4.14 and above analyst estimates near $4.48–$4.49.
Management said in the earnings-call transcript that, given strong year-to-date results, it was reaffirming its full-year revenue growth guidance of 10% and raising its EPS guidance to $18.30–$18.60 on a reported basis and $17.60–$17.90 on an adjusted basis. The company filed a Form 8-K with the SEC on Oct. 23 reporting the results and related exhibits.
Restructuring and Spending Trends
The company recorded a $336 million restructuring charge tied to efficiency initiatives expected to eliminate about 5.0% of its global workforce. Adjusted results excluded a $982 million pretax gain, or $751 million after tax, from the sale of American Express’s equity interest in Global Business Travel Group, net of the portion used to fund the restructuring.
Card spending, measured as billed business, rose 8.0% to $454 billion in the quarter. Travel and entertainment spending increased 10.0% year over year, including a 13.0% rise in airline spending and a 9.0% increase in restaurant spending. Consolidated provisions for credit losses fell to approximately $1.0 billion from $1.3 billion a year earlier. These spending gains supported billed-business growth and the revenue momentum cited in the guidance raise.
Management did not provide guidance for the 2027 card fee during the call and said it would share further details in January.
