American Express Raises 2026 Profit Forecast as Affluent Customers Keep Spending

Updated 17:15 UTC: American Express will eliminate about 5 percent of its global workforce, roughly 3,500 jobs out of about 78,000, under a restructuring the company disclosed on its third quarter earnings call on Friday. Chief executive Stephen Squeri told analysts the cuts are backed by the $336 million pretax restructuring charge recorded in the quarter. Chief financial officer Christophe Le Caillec said the aim is to make the company leaner and more agile and to prepare for AI, by removing management layers and widening spans of control so more work can be automated in the coming quarters and years. The company did not say which regions or units will lose the most roles, and executives did not claim that AI has already replaced the jobs being cut. Proceeds from the sale of its stake in Global Business Travel Group helped fund the charge.

NEW YORK. American Express raised its profit forecast for 2026 on Friday, October 23, after a third quarter in which its wealthier card members kept spending on travel, dining and shopping, and credit quality stayed strong.

The card company now expects full year earnings of $18.30 to $18.60 a share, up from its earlier range of $17.30 to $17.90. On an adjusted basis it put the range at $17.60 to $17.90, a figure that excludes a boost from the sale of its equity stake in Global Business Travel Group, net of a restructuring charge, Dow Jones reported. The company said it remains on track for sales growth of 10 percent this year.

The quarter in numbers

Third quarter profit was $3.71 billion, or $5.42 a share, compared with $2.9 billion, or $4.14 a share, a year earlier. Adjusted earnings were $4.68 a share, above the $4.48 average estimate from FactSet and the $4.47 consensus tracked by Zacks, which put the earnings surprise at 4.7 percent.

Revenue, net of interest expense, rose 9 percent to $20.06 billion, just under the roughly $20.12 billion analysts had forecast. Billed business, the total spent on all AmEx issued cards, rose 8 percent in the quarter to $454 billion. The company set aside $1 billion in consolidated provisions for credit losses, down from $1.3 billion in the same quarter a year ago. Shares were last up 0.8 percent in premarket trading after the results, Reuters reported.

What the chief executive said

"Business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality," chief executive Stephen Squeri said in a statement. The results covered the quarter that ended on September 30, 2026.

Why the numbers matter beyond one company

American Express aims at customers with high credit scores and more disposable income, a focus that has helped it hold up when wider economic slowdowns and uncertainty hurt other lenders, Reuters noted. Its results are not a full gauge of consumer health, because its customers are wealthier than average. They do give investors an early look at how affluent households are spending on the discretionary items, travel and restaurants, that slow first when budgets tighten.

The company has also spent heavily to bring in younger customers, in particular Gen Z and millennial card members, as it tries to build relationships that last for decades. Executives at major US banks made a similar point about consumer resilience across income groups when they reported earlier this month, pointing to steady spending and stable credit metrics. For AmEx, Friday's message was narrower and stronger: its own customers are still spending, losses are contained, and the year will finish better than it expected.