October 24, 2026 | TickerRoast Markets Analysis
American Express delivered record third-quarter revenue, solid card spending and a higher full-year profit outlook. Investors nevertheless sent the shares lower on October 23, focusing on a restructuring that will eliminate about 5% of global positions, higher legal reserves and a gap between headline and adjusted earnings.
What Happened
American Express reported its third-quarter 2026 results before the market opened on Friday, October 23. According to the company’s earnings release filed with the SEC, total revenues net of interest expense rose 9% to $20.06 billion, net income increased 28% to $3.71 billion and diluted earnings per share rose 31% to $5.42.
Those headline figures include a one-time pre-tax gain of $982 million from the sale of the company’s stake in Global Business Travel Group. Excluding special items, adjusted EPS was $4.68, up 13%, according to the release. Chairman and CEO Stephen Squeri said: “We had another strong quarter, delivering 9 percent revenue growth and EPS of $5.42.”
| Metric (Q3 2026) | Result | Change |
|---|---|---|
| Revenues net of interest expense | $20,062M | +9% |
| Net income | $3,712M | +28% |
| Diluted EPS (GAAP) | $5.42 | +31% |
| Adjusted EPS | $4.68 | +13% |
| Billed business | $454.0B | +8% |
| Provisions for credit losses | $1.0B | vs $1.3B a year earlier |
| Net write-off rate | 1.8% | vs 1.9% a year earlier |
The Restructuring and Other One-Time Items
The company recorded a restructuring charge of $336 million before tax, according to the release. On the earnings call, as summarized by MarketBeat via Yahoo Finance, management said the plan is expected to eliminate about 5% of global positions, with the aim of reducing management layers and speeding up decision-making. Adjusted results also included higher legal reserves equivalent to $0.51 per share, related to a regulatory civil money penalty and an expected settlement in a separate matter, according to the same summary.
Guidance Raised
American Express now expects 2026 GAAP EPS of $18.30 to $18.60, up 19% to 21% from 2025, and adjusted EPS of $17.60 to $17.90, up 14% to 16%, according to the release. The company said it remains on track for about 10% revenue growth this year.
How the Stock Reacted
Based on Yahoo Finance data, American Express closed at $313.22 on October 23, down 3.7%, on volume about 1.3 times its 20-day average. Reuters, as published by The Spokesman-Review, attributed the decline to the planned workforce reduction, despite the higher profit forecast. The stock was down about 16% since the start of the year, based on Yahoo Finance data.
In our view, the reaction reflects the quality of the beat more than its size. The GAAP figure was boosted by a one-time gain, the adjusted figure was weighed down by restructuring and legal costs, and investors tend to look through both toward the underlying trend: steady revenue growth of around 9% to 10%.
Business Analysis
The underlying business remains solid. Billed business grew 8%, travel and entertainment spending rose 10% and U.S. consumer spending increased 9.4%, according to MarketBeat’s summary of the call. Net card fees grew 17% on a currency-adjusted basis, the fastest-growing revenue line, which management attributed to the refresh of its U.S. Platinum card. The company issued 3.1 million new cards in the quarter, 76% of them on fee-paying products.
Credit quality also held up. Delinquencies remained between 1.2% and 1.3% for a 15th consecutive quarter, and the net write-off rate edged down to 1.8%. Provision expense fell partly because of a reserve release linked to model changes, which may not recur.
Technical Picture
Based on Yahoo Finance data, American Express traded slightly above its 20-day simple moving average (about $310) but below its 50-day (about $319) and 200-day (about $327) averages, with a 14-day RSI near 49. The 52-week range spans $290.97 to $387.49. Technical indicators describe past price behavior and do not predict future moves.
Key Risks
- Consumer spending: high energy prices and weak consumer sentiment could slow card spending.
- Credit: a deterioration in the economy could raise delinquencies and write-offs from low levels.
- Regulatory and legal costs: recent penalties and settlements show ongoing compliance exposure.
- Execution of the restructuring: job cuts carry operational and reputational risks.
- Earnings quality: one-time gains and reserve releases can make results harder to compare.
Conclusion
American Express showed continued growth in revenue, card fees and spending, along with stable credit and a higher outlook. The share decline suggests investors are weighing the restructuring, legal costs and one-time items more heavily than the headline beat. Upcoming quarters will show whether cost savings and premium-card growth can sustain the company’s earnings trajectory.
Sources
- American Express Third-Quarter 2026 Earnings Release (Form 8-K, Exhibit 99.1) — SEC EDGAR / American Express
- American Express Q3 Earnings Call Highlights — MarketBeat, via Yahoo Finance
- Dow, S&P 500 fall, tech steadies to end rocky week — Reuters, via The Spokesman-Review
Market data: Yahoo Finance, close of 2026-10-23.
Disclaimer: This article is for informational and educational purposes only. It provides general financial and business analysis and does not constitute investment advice, a personal recommendation, a recommendation to buy, sell or hold any security, or an offer to transact in any financial instrument. Information is based on publicly available sources as of October 24, 2026 and market data as of the 2026-10-23 close (Yahoo Finance). Past performance is not a reliable indicator of future results; forecasts are uncertain and actual results may differ materially. Investing in shares involves risk, including the loss of capital. The publisher does not guarantee the accuracy or completeness of the information and accepts no responsibility for investment decisions made on the basis of this article. Readers should consult official company disclosures, conduct their own research and, where appropriate, seek advice from a licensed financial adviser. Any relevant financial interests held by the author or publisher in the securities mentioned are disclosed where applicable. This article was prepared with the assistance of AI tools and is based on the sources listed above.
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Anonymous reader poll, just for fun. Not investment advice.
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