American Express (AXP) reported strong third-quarter results, with revenue rising approximately 9% to between $20.06 billion and $20.1 billion. Billed business also increased by 8% to $454 billion, while GAAP net income reached around $3.7 billion, translating to GAAP earnings per share (EPS) of about $5.42. Adjusted EPS came in at $4.68, a 13% increase, prompting the company to raise its 2026 EPS guidance.
The company took a $336 million pretax restructuring charge in Q3, cutting about 5% of its staff, or roughly 3,500 to 3,800 jobs, as part of its push toward automation and AI-driven simplification. Traders are closely watching these cost-cutting measures and AI investments, which could impact future profitability and execution risks.
Cardholder spending at American Express rose 8% to $454 billion, while card balances increased by 7% year-over-year. Delinquencies and write-offs improved compared to the previous year. The company also completed the acquisition of Swisscard in January and sold its stake in GBTG to fund efficiency plans and the Q3 restructuring.
American Express has partnered with Airbnb, allowing eligible luxury stays booked via Amex Travel to count toward Platinum lodging credits. The company’s Graphite Card has shown strong early adoption with stable delinquencies. Additionally, American Express plans to develop AI-driven products and partnerships, including with OpenAI, to enhance personalized and proactive cardholder experiences.
Berkshire Hathaway kept American Express as a major holding into early 2026 while exiting positions in Visa and Mastercard. AXP’s underperformance relative to its card peers influenced Berkshire’s portfolio mix. CEO Stephen Squeri stated that the company is not pursuing network partnerships with larger banks, reflecting its current stance on collaborations with bigger banking institutions.