American Express Co. (NYSE:AXP) stock fell Friday despite the credit card giant reporting better-than-expected third-quarter earnings and raising the lower end of its full-year profit outlook.
The company also announced plans to cut about 5% of its global workforce as it moves to reduce costs and simplify operations. 12 billion.
48. Higher Card Member spending, growing card balances and stronger card fee revenue supported results.
Card Member spending, also known as billed business, rose 8% to $454 billion. Travel and entertainment spending increased 10%.
S. 55 billion.
68 billion. 08 billion.
97 billion. S.
Platinum Card refresh. 3 billion a year earlier.
A reserve release helped offset higher net write-offs. 9% a year earlier.
American Express also faces a $350 million regulatory penalty related to anti-money-laundering deficiencies. Management said the enforcement actions would not affect its 2026 guidance or 2027 outlook.
American Express To Cut 3,500 Jobs CEO Steve Squeri told Bloomberg on Friday that the company plans to eliminate about 3,500 jobs, representing roughly 5% of its global workforce. The restructuring aims to reduce management layers, simplify operations and accelerate decision-making.
American Express recorded a $253 million after-tax restructuring charge. The company also recognized a $751 million after-tax gain from selling its stake in Global Business Travel Group.
Consumer Spending Remains Resilient Squeri highlighted continued strength in customer spending, card acquisitions, retention and credit quality. The company also expanded its premium card offerings through a partnership with Airbnb Inc.
(NASDAQ:ABNB). The agreement allows eligible luxury rentals booked through Amex Travel to qualify for Platinum cardholders’ annual lodging credit.
During the earnings call, Squeri acknowledged that the anti-money-laundering deficiency cited by regulators should not have occurred. He said American Express would address the issue thoroughly and confirmed that the regulatory orders do not impose an asset cap.
CFO Christophe Le Caillec said customer spending patterns remained consistent with the past year, reflecting steady growth. He also pointed to strong early adoption of the new Graphite Card and said delinquency rates remained low and stable.
45 billion, representing about 10% annual growth. 48 billion.
30. 90.
63. 75 at the time of publication Friday, according to Benzinga Pro.
