American Express Beats on Q3 Profit and Plans About 3,500 Job Cuts; Shares Slip 3% on Revenue Miss

AXP reported third-quarter 2026 adjusted earnings of $4.68 per share on Friday, above the consensus estimate of about $4.51. Revenue net of interest expense rose 9% to a record $20.06 billion, just short of the $20.12 billion analysts expected. GAAP earnings of $5.42 a share, up 31% from $4.14 a year ago, were lifted by a $982 million pre-tax gain on the sale of its stake in a corporate travel business, which is why the adjusted figure, up 13%, is the cleaner read on the quarter.

The operating trend was solid. Card Member billed business grew 8% to $454 billion, the net write-off rate improved to 1.8% from 1.9%, and Chief Executive Stephen Squeri pointed to strength in billings, new card acquisitions and Card Member retention. Management raised the low end of its full-year adjusted EPS outlook by $0.30, to a range of $17.60 to $17.90, and left the top end unchanged. Part of the travel-stake gain funded a $336 million restructuring charge: Squeri said on the call it would eliminate about 5% of positions globally, which a company spokeswoman put at roughly 3,500 roles.

Shares still fell about 3% in morning trading, to around $316.65, while V slipped 0.6% and MA 0.5%. Skeptics focused on the small revenue miss and on a lower effective tax rate, 18.1% against 24.1% a year earlier, that flattered net income. The drop came on a weak open for blue chips, with the Dow down more than 500 points early in the session.

What to watch: whether billings growth holds as the $200 increase in the U.S. Platinum annual fee runs through a full year, how quickly the job cuts show up in operating expenses, and whether revenue closes the gap to estimates next quarter.