American Express grows revenue 9 percent and takes a charge to cut jobs

What happened

American Express reported on Friday 23 October that third-quarter revenue net of interest expense was $20.1 billion, up 9 percent from a year earlier, and net income $3.7 billion. ^[1]

Expenses were $14.5 billion, also 9 percent higher. The company said higher card spending and the refresh of its U.S. Platinum Card drove the increase, partly offset by lower operating expenses. ^[1]

Why it matters

Part of the quarter's profit came from one sale. American Express booked a $982 million gain on selling its stake in Global Business Travel Group, its quarterly report said. It used a portion of that gain for a $336 million restructuring charge tied to efficiency initiatives. ^{[2, 1]}

Less set aside for losses

Provisions for credit losses, the money set aside for loans that may go unpaid, were $1.0 billion against $1.3 billion a year earlier. The company said a reserve release replaced a reserve build of a year ago, and its report credits the release mainly to changes in the models that estimate losses. The net write-off rate was 1.8 percent, down from 1.9 percent. ^{[1, 2]}

Job cuts and a regulators' order

On the earnings call, chief executive Stephen Squeri said the company 'needed to become a more agile and efficient organization,' Banking Dive and InvestmentNews reported. A spokesperson told Banking Dive that about 3,500 of roughly 78,000 workers worldwide would be cut, nearly 4.5 percent. ^{[4, 5, 3]}

The sources differ on the size. InvestmentNews reported that Squeri put the cut at about 5 percent of positions globally, as CNBC's headline did. The quarterly report says restructuring costs were the main reason salary and benefit expenses grew. ^{[5, 6, 2]}

The quarterly report also records that on Thursday 8 October the company consented to orders from the Federal Reserve and the Office of the Comptroller of the Currency over its financial crimes compliance program. Its bank agreed to pay a $350 million penalty to the OCC. The release said expenses included an increase in legal reserves for previously disclosed matters, and Banking Dive reported that the quarter took account of the fine. ^{[2, 1, 4]}

What settles it next

The quarterly report said the company expects growth in its rewards, benefits and partner costs to moderate next quarter, as the Platinum refresh shows in both years' figures. Squeri said in the release the company is 'on track to deliver another year of 10 percent revenue growth.' ^{[2, 1]}

The annual report for 2026 is due by Monday 1 March 2027, under the SEC's 60-day rule for large accelerated filers, the category the company's 10-Q cover marks. ^{[7, 2]}

Who it reaches

American Express (AXP) is direct: the results, the restructuring charge and the regulators' orders are its own. Global Business Travel Group (GBTG) is adjacent: American Express sold its stake in it, the source of the $982 million gain. Marriott International (MAR) is adjacent: the release says the two extended their long-term partnership, including the U.S. cobrand cards. ^{[1, 2]}