American Express has raised its full-year earnings forecast while announcing plans to cut approximately 5% of its global workforce, combining record quarterly revenue with a restructuring programme designed to simplify operations and improve efficiency.
The US payments group reported third-quarter revenue of $20.1 billion, an increase of 9% from the previous year, supported by higher cardmember spending, increased interest income and stronger card fees. Net income rose 28% to $3.7 billion, while diluted earnings per share increased 31% to $5.42.
However, reported earnings included a gain from the previously announced sale of American Express' equity interest in Global Business Travel Group. Excluding that gain, net of associated restructuring costs, adjusted earnings reached $4.68 per share, representing annual growth of 13%.
American Express now expects full-year diluted earnings of $18.30 to $18.60 per share, up from previous guidance of $17.30 to $17.90. Its adjusted earnings forecast has also increased at the lower end to $17.60 to $17.90 per share, reflecting continued confidence in its underlying financial performance.
Chief executive Stephen Squeri confirmed that the company intends to reduce its global workforce by approximately 5% as it reorganises operations and concentrates resources on strategic priorities. American Express recorded a $336 million restructuring charge during the third quarter to account for the programme.
The announcement is significant because the reductions are taking place alongside improving commercial performance rather than a sustained contraction in revenue. Management is seeking to reduce structural complexity while maintaining investment in customer services, technology and products supporting future growth.
The restructuring also illustrates a wider shift towards operating efficiency across financial services, where organisations are attempting to align staffing levels and administrative costs with changing business requirements. Although workforce reductions can lower recurring expenditure, the financial benefits depend on whether operational capabilities and service standards are maintained.
Customer spending remains a major source of strength. Total spending on American Express-issued cards reached $454 billion during the quarter, an increase of 8% from a year earlier. Travel and entertainment spending rose 10%, including growth of 13% in airline spending and 9% in restaurants.
Chief financial officer Christophe Le Caillec has indicated that higher airline ticket prices contributed to spending growth, alongside increased transaction activity. The distinction is relevant when evaluating consumer spending because higher transaction values can partly reflect inflation rather than increased purchases.
The company's focus on affluent customers has helped maintain demand for premium card products and associated services. However, changes in wider economic conditions, borrowing costs and household spending patterns remain important considerations for future revenue growth.
Credit performance also warrants attention. American Express reported provisions for credit losses of approximately $1.0 billion, compared with $1.3 billion a year earlier. The reduction partly reflected a release of credit reserves rather than simply a decline in underlying losses, while the reported net write-off rate fell to 1.8% from 1.9%.
For CFOs and finance directors, the results demonstrate how strong revenue performance can create opportunities to fund organisational restructuring without abandoning growth investment. The $336 million charge represents an immediate cost, while the intended savings will need to be assessed against future operating expenditure and productivity.
The financial challenge is ensuring that organisational changes deliver measurable improvements in profitability without weakening customer retention, operational controls or the quality of services that support premium pricing.
American Express enters the final quarter of 2026 with improved earnings expectations and resilient cardmember activity. Its subsequent results will provide an indication of whether the planned workforce reductions contribute to sustainable efficiency gains while preserving the growth supporting its revised financial outlook.
