American Express reported stronger third-quarter earnings Friday and raised the lower end of its full-year profit forecast, even as the payments company announced plans to eliminate approximately 5% of its global workforce.
Third-quarter net income increased 28% from a year earlier to $3.71 billion. Diluted earnings reached $5.42 per share, while adjusted earnings were $4.68 per share. Revenue increased 9% to a record $20.1 billion.
Spending by American Express customers remained resilient. Total billed business increased 8% to $454 billion, while travel and entertainment purchases rose 10%. Airline spending increased 13%.
That strength is important because American Express has significant exposure to affluent consumers, whose spending has remained comparatively resilient despite elevated borrowing costs and broader economic uncertainty.
Costs, however, are also increasing. Consolidated expenses rose 9% to approximately $14.5 billion.
The company plans to eliminate about 3,500 positions, representing approximately 5% of its global workforce, as part of an effort to improve efficiency and organizational agility.
American Express simultaneously raised its 2026 earnings outlook. It now expects reported earnings of $18.30 to $18.60 per share and adjusted earnings of $17.60 to $17.90.
The combination provides an important signal about the U.S. consumer economy.
Affluent households continue spending heavily on travel and premium services, but even companies benefiting from that resilience are moving aggressively to control operating costs.
The next test will be whether premium-card spending remains strong through the holiday quarter and whether American Express can slow expense growth without weakening customer retention or revenue momentum.
