Quick Read
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AmEx (AXP) boosted its GAAP forecast largely on a $982 million one-time gain, while the adjusted EPS range moved only at the low end.
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Unlike Visa (V) and Mastercard (MA), AmEx both issues cards and runs its network, doubling its exposure when consumer spending slows.
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On October 23, 2026, American Express (NYSE:AXP) raised its full-year profit forecast. On the earnings call that same morning, it said it would cut about 5% of its global workforce.
Full-year 2026 GAAP earnings per share guidance rose to $18.30 to $18.60, from a prior range of $17.30 to $17.90. The cuts come to roughly 3,500 jobs out of about 78,000 workers worldwide.
Investors weighted the cuts and slower spending growth more than the higher forecast. Shares fell 3.68%, or $11.95, to $313.22. That leaves the stock down 14.39% for the year, with a market cap of $211.52 billion.
What AmEx Put in Writing and What It Held Back
The signed and disclosed part is a $336 million pretax restructuring charge, or $0.37 per share. AmEx did not say which units or countries will lose jobs, or when the cuts will be finished. It also did not say how much the cuts will save or whether those savings are already in its plans for next year. At year-end 2025, about 50,900 of its employees worked outside the U.S. and about 25,900 worked inside it.
A nonrecurring item drives much of the GAAP raise: a $982 million pretax gain on selling AmEx’s stake in Global Business Travel Group (NYSE:GBTG), worth $1.11 a share. The adjusted range of $17.60 to $17.90 moved only at the low end.
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Chief executive Stephen Squeri said, “We’ve got good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organization.” Chief financial officer Christophe Le Caillec said the goal is to make the company “leaner, more agile, and also to prepare for AI” by removing layers of management before more work is automated.
