American Express raised its 2026 profit forecast above Wall Street expectations on Friday after reporting stronger-than-expected third-quarter results. The company now expects full-year adjusted earnings of $17.60 to $17.90 per share, exceeding analysts’ estimates of $17.63 at the midpoint. Third-quarter adjusted earnings reached $4.68 per share, beating expectations of $4.48.
The credit card giant reported an 8% increase in billed business to $454 billion in the third quarter, while revenue climbed 9% to $20.1 billion. Spending on travel and entertainment rose 10% year-on-year, supported by a 13% increase in airline spending and a 9% rise in restaurant spending. American Express has benefited from its focus on affluent customers, while continuing to invest in attracting younger consumers, particularly Gen Z and millennials, to support long-term growth.
Alongside its improved profit outlook, American Express announced plans to eliminate 5% of its global workforce as part of a restructuring initiative. The move comes amid broader economic uncertainty and rising travel costs, including higher airline ticket prices linked to surging fuel prices and disruptions to global oil supplies. Despite the strong results, the company’s shares fell 1.3% in volatile premarket trading, reflecting a recurring trend of the stock declining even after earnings exceeded market expectations.
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