American Express Q3 earnings beat masked by one-off gain, job cuts
Article excerpt
American Express’s Q3 earnings release on 23 October 2026 beat Wall Street’s profit forecast and came with an upgraded full-year outlook, yet the shares fell all the same. The gap between the headline numbers and what actually drove them is the real story here. American Express (AXP) reported consolidated revenue net of interest expense of $20.1bn for the third quarter, up 9% year-on-year, fractionally short of the roughly $20.13bn analysts had pencilled in, according to Zacks. Adjusted earnings per share came in at $4.68, comfortably ahead of the roughly $4.48-4.50 consensus and up from $4.14 a year earlier, The Globe and Mail reported. On the strength of that, Amex lifted its 2026 profit guidance to $18.30-$18.60 per share on a reported basis, or $17.60-$17.90 adjusted, up from a prior range of $17.30-$17.90, Reuters reported. Strip away the adjustments and reported, GAAP-basis diluted earnings per share were actually $5.42 – well above the $4.68 adjusted figure that made the headlines. That’s confirmed in the company’s own 10-Q filing, which shows net income of $3.712bn for the quarter. The reason the two numbers diverge so sharply is a $1.11-per-share gain from the sale of Amex’s stake in Global Business Travel Group, which flattered the reported figure, while legal reserves tied to a regulatory penalty and a restructuring charge worked the other way. Analysts and...
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The company detailed an exclusive tie-up with Airbnb bringing more than a million listings into Amex Travel, and said it is weaving OpenAI’s models into tools such as its Resy restaurant-booking platform, according to the earnings call transcript.
