American Express has announced plans to eliminate 5% of its global workforce as part of a restructuring. The move comes as the company raised its 2026 profit forecast above Wall Street expectations on Friday after reporting strong third-quarter results.
AmEx 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.
In its Q3 report, AmEx posted an adjusted profit of $4.68 per share in the quarter ended September 30, sailing past Wall Street expectations of about $4.48. The company’s spending rose 10% from a year earlier, led by a 13% jump in the airline category and a 9% rise in the restaurant category.
Stephen J. Squeri | Chairman and Chief Executive Officer told investors: “We had another strong quarter, delivering 9 percent revenue growth and EPS of $5.42, or $4.68 adjusted, up 13 percent year-over-year.1 Our business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality.
“Given our performance year-to-date, we are raising our full-year EPS guidance to between $18.30 and $18.60 ($17.60-$17.90 adjusted),4 and we’re on track to deliver another year of 10 percent revenue growth.
“The progress we’re making across the business and ongoing innovations to enhance our Membership Model give me great confidence in our ability to deliver differentiated value for our customers and strong returns for our shareholders over the long term.”
The new restructuring comes as the company has invested heavily in attracting younger consumers, particularly Gen Z and millennials, to build long-term customer relationships and expand its global market share to sustain growth.
The stock fell 1.3% following the announcement.
By CEO NA Editorial Staff
