American Express Co. (NYSE:AXP) saw its stock decline on Friday, despite reporting strong third-quarter earnings that exceeded expectations. The company's revenue, net of interest expense, reached $20.06 billion, up 9% year over year, though slightly below the analyst consensus estimate of $20.12 billion. Adjusted earnings per share came in at $4.68, beating Wall Street's estimate of $4.48. Key drivers included higher card member spending, growing card balances, and stronger card fee revenue.
The company also announced plans to cut about 5% of its global workforce, or approximately 3,500 jobs, as part of a restructuring effort to reduce costs and simplify operations. CEO Steve Squeri noted that the cuts aim to streamline management layers and accelerate decision-making. American Express recorded a $253 million after-tax restructuring charge but also recognized a $751 million after-tax gain from selling its stake in Global Business Travel Group.
Despite the positive earnings report, rising costs and a $350 million regulatory penalty related to anti-money-laundering deficiencies drew attention. Squeri acknowledged the regulatory issue but assured that it would not affect the company's 2026 guidance or 2027 outlook. Total expenses increased 9% to $14.55 billion, reflecting higher customer engagement costs tied to spending growth and the U.S. Platinum Card refresh.
American Express raised the lower end of its full-year earnings guidance to $17.60 per share from $17.30, while maintaining its full-year revenue outlook of approximately $79.45 billion. At the time of publication, American Express shares fell 1.67% to $319.75.