American Express Raises 2026 Earnings Outlook to $18.60 a Share
Key Facts
American Express on October 23 raised its 2026 earnings-per-share forecast to a range of $18.30–$18.60, and to $17.60–$17.90 on an adjusted basis, after reporting record third-quarter revenue. The company said in its results filing with the U.S. Securities and Exchange Commission that quarterly revenue reached $20.1 billion, up 9% year over year. Reported earnings per share were $5.42, up 31% from the same period last year. Adjusted profit was $4.68 a share, up 13%, after excluding a gain from the sale of a stake in GBTG and the net impact of restructuring costs. The gap shows that reported earnings benefited from an exceptional item, while the adjusted figure offers a clearer reading of the quarter’s business performance.
Billed business, a measure of total spending on American Express cards, reached $454 billion in the third quarter, up 8% from a year earlier, according to Reuters. Its growth was slightly below the 9% increase in revenue, while net income rose to $3.712 billion from $2.902 billion a year earlier, an increase of 28%, according to the company’s statement. American Express attributed higher revenue to increased cardholder spending, growth in interest income as card balances rose, and strong growth in card fees. Chief Executive Stephen Squeri said the company was “on track to deliver another year of 10% revenue growth.” These drivers link spending and fees on one hand with interest income on the other in the growth base underpinning the higher forecast.
Travel and entertainment-related spending remained a key business driver, rising 10% year over year in the third quarter, according to Reuters. Airline spending increased 13%, while restaurant spending grew 9%. The chief financial officer said average ticket prices and higher airfares contributed to growth in the airline category, putting spending performance in a context that combines increased activity with the effect of prices. The figures reflect continued cardholder demand in travel and hospitality, alongside broader growth in billed business. The company raised the annual fee for its Platinum card from $695 to $895 when it updated the card last year, according to an Associated Press report. The report added that most customers who moved to the higher fee decided to keep the card, indicating the company’s ability to boost fee revenue while its customer base continues using its products.
Revenue growth was accompanied by higher consolidated expenses, which reached $14.5 billion, up 9% from the third quarter of the previous year. American Express said the increase was mainly tied to higher variable costs of servicing customers, alongside increased spending and the refresh of the U.S. Platinum card. Investors tracked growth in marketing expenses and the costs of providing card benefits, Reuters reported, as the spending and revenue base expanded. Provisions for credit losses were $1 billion, compared with $1.3 billion in the third quarter of 2025, while the net write-off rate fell to 1.8% from 1.9%. The company attributed the lower provisions to reserve releases during the quarter, compared with reserve builds a year earlier, partly offset by higher net write-offs. Credit indicators provide a picture of portfolio performance as card balances continue to support interest income.
The company said on October 23 that it planned to cut 5% of its global workforce, or about 3500 jobs, as part of a restructuring. Management linked the plan to the need to make the company more agile and efficient, while the net impact of restructuring costs was excluded from adjusted earnings per share for the quarter. The move comes alongside the company’s investment in customer service and card benefits, which it said contributed to higher expenses. After the results were announced, American Express shares fell 2.5% in morning trading, according to Reuters. The stock closed at $313.22 on October 23, according to EL7 data. Between the higher earnings outlook and the share-price reaction, expenses and restructuring costs remained among the key items to watch in the company’s results.