American Express raises 2026 profit forecast

American Express raised its 2026 profit forecast to $18.30-$18.60 a share and said it will cut about 3,500 jobs, or 5% of its global workforce.

Third-quarter results beat estimates

Revenue net of interest expense rose 9% to a record $20.1 billion, billed business climbed 8% to $454 billion, and adjusted EPS reached $4.68.

Restructuring produces $336 million charge

The restructuring produced a $336 million charge, and total expenses rose 9% to $14.5 billion as marketing and card benefits spending increased.

Credit metrics improve

Provisions for credit losses fell to $1 billion and the net write-off rate eased to 1.8%.

CEO Stephen Squeri explains strategy

CEO Stephen Squeri said the business has 'good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organization.'

“good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organization”

Company targets premium customers

American Express aims to spend more to attract and retain premium customers while cutting costs.

Layoffs among financial firms

Barclays plans 5% workforce cuts, eBay announces 9% job reductions, and technology companies deploy AI to lower costs.

Stock reacts to guidance

Shares slipped about 2% at the open, a muted reaction given the profit forecast increase.