American Express earnings for the third quarter came in at a profit of $3.71 billion, up 28% from a year earlier, and the company said it plans to cut about 5% of its workforce. It released the results on Friday, October 23.
The figures below come from AmEx’s earnings release filed with the SEC and from the Associated Press’s coverage. This is a news summary, not investment advice.
American Express earnings: the headline numbers
AmEx earned $5.42 a share under standard accounting rules, up 31%. Adjusted earnings were $4.68 a share, up 13%. The adjusted figure leaves out a $982 million pre-tax gain from the sale of AmEx’s stake in Global Business Travel Group, net of a restructuring charge. AP says the adjusted number beat Wall Street estimates.
Revenue net of interest expense was $20.06 billion, up 9%. Billed business, the amount cardmembers charged, came to $454.0 billion, up 8%. AP reports that the average customer put $6,735 on their card in the quarter, about $2,245 a month and 5% more than a year ago.
Credit costs eased. Provisions for credit losses were $1.0 billion, compared with $1.3 billion a year earlier. The release says that reflects a reserve release this quarter against a reserve build last year. The net write-off rate was 1.8%, down from 1.9%. For comparison, see how Capital One’s card charge-offs fell to 3.98% in its latest quarter.
The Platinum fee test
Last year AmEx raised the annual fee on its Platinum Card from $695 to $895 and added perks. According to AP, the big question for Wall Street was whether cardmembers would accept paying $200 more. AmEx says nearly all of the customers moved to the new card have kept it. AP reports that net card fees rose by more than $400 million from a year earlier.
The job cuts
AmEx told investors it plans to cut its workforce by 5%, or about 3,500 employees. AP calls these the company’s first major job cuts in roughly a decade. CEO Steve Squeri said the layoffs are about efficiency, not a sign of a downturn in the business.
The earnings release shows a $336 million pre-tax restructuring charge, or $253 million after tax, tied to efficiency initiatives. In the parts we reviewed, the release does not link that charge to the layoffs, so we are not connecting the two figures.
Investors had been watching AmEx’s rising operating costs. According to AP, the company has had to compete with Capital One and JPMorgan Chase on perks and rewards that are expensive to run.
What is driving the spending
Chief Financial Officer Christophe Le Caillec told AP that some of the higher spending likely reflects inflation. Travel and entertainment spending rose 10% from a year earlier, and dollars spent on airline tickets rose 13%. AP notes that airfares have gone up this year because of higher fuel costs and other inflationary pressure; our guide to holiday airfares has the numbers. Cardmembers are also simply using their cards more, with transactions per cardmember rising.
The outlook
AmEx raised its 2026 earnings guidance to $18.30 to $18.60 a share under standard accounting, and $17.60 to $17.90 adjusted. Squeri said the company is on track for another year of 10% revenue growth. Cardholders who carry a balance should also note that the average credit card APR is 19.67%.
Editor’s take
A 28% profit jump and the first big layoffs in about ten years is an odd pairing, and it says something about where the premium card business is. AmEx can raise a fee by $200 and keep nearly everyone. But the perks race with Capital One and Chase is costing real money, even for the market leader. We would watch two things in the next few quarters: whether the higher fee keeps holding up as rivals add benefits, and whether credit losses stay low if inflation slows spending. For cardholders, the takeaway is simple. Premium cards are charging more, and the perks are part of what you are paying for.
