American Express has today raised its 2026 profit forecast above Wall Street expectations and announced plans to eliminate 5% of its global workforce, or about 3,500 jobs, as part of a restructuring.
Its CEO Stephen Squeri told analysts that the company had good momentum, but needed to become a more “agile and efficient” organisation.
Companies globally have stepped up job cuts in 2026, with several financial firms, including Barclays this week, citing efficiency gains driven by artificial intelligence and investments in the technology as reasons for the layoffs.
American Express has had a strong year, driven by spending by its wealthy customers, but investors have been closely watching expense growth after it ramped up marketing spending and refreshed cards with new perks. The stock is down 12% year-to-date.
The company’s consolidated expenses came in at $14.5 billion in the third quarter, up 9% over the prior year.
It expects full-year adjusted profit in the range of $17.60 to $17.90 per share, with the mid-point well above estimates of $17.63, according to data compiled by LSEG.
By targeting affluent consumers with high credit scores and more disposable income, the credit card giant has built a moat around its business to keep broader economic slowdowns and uncertainty at bay.
AmEx’s travel and entertainment spending rose 10% in the third quarter from a year earlier, led by a 13% jump in the airline category and a 9% rise in the restaurant category.
“Of course, there is some impact here from the average ticket size and airline price increases,” Chief Financial Officer Christophe Le Caillec told Reuters in an interview, referring to the airline segment.
Airlines worldwide have raised ticket prices in recent months as they grapple with surging fuel prices stemming from the Middle East conflict and disruptions to global oil flows.
Billed business, a measure of total spending on all AmEx-issued cards, rose 8% in the third quarter to $454 billion. Revenue climbed 9% to $20.1 billion.
“Spending is holding up at the top end and there’s no sign of stress in this base, which stands in contrast to the lower-income consumer,” said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors.
The company has invested heavily in attracting younger consumers, particularly Gen Z and millennials, as it seeks to build long-term customer relationships and expand its global market share to sustain growth.
AmEx posted an adjusted profit $4.68 per share in the quarter ended September 30, sailing past Wall Street expectations of about $4.48.
