American Express Company

(New York Stock Exchange)
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Somewhat Bullish +35

AXP Stock Layoffs: What to Know About the Latest American Express Job Cuts - Yahoo Finance

Business restructuring Earnings report Layoffs AI-generated analysis

πŸ“‰ AXP shares slipped after reporting mixed Q3 results and announcing plans to cut approximately 3,500 jobs worldwide.

πŸ”§ The restructuring aims to simplify operations, remove organizational layers, and accelerate decision-making for AI readiness.

πŸ’° American Express recorded a $336 million pretax restructuring charge funded partly by selling its stake in Global Business Travel Group.

πŸ“ˆ Adjusted EPS grew 13% year-over-year, leading the company to raise its full-year guidance bottom end to $17.60 per share.

πŸ“‰ Billed business of $454 billion missed the $457 billion consensus, partly due to exiting small-business co-brand relationships.

⚠️ Q3 expenses rose 9% to $14.5 billion, with rewards and marketing costs increasing by 10% and 11%, respectively.

πŸ“Š Reported EPS of $5.42 benefited from the business-travel investment sale, complicating the view of underlying operating momentum.

🀝 Wall Street firms favor treating the post-earnings dip as a buying opportunity with a consensus 'Moderate Buy' rating.

🎯 The mean analyst price objective is approximately $369, indicating significant upside potential from current levels.

Bullish Signals
  • American Express raised its full-year EPS guidance bottom end to $17.60 following a 13% year-over-year increase in adjusted earnings per share.
  • Wall Street analysts maintain a 'Moderate Buy' rating with a mean price objective of $369, suggesting significant upside from current levels.
  • The company is restructuring to become more agile and prepared for AI, potentially unlocking future growth opportunities.
  • Proceeds from the sale of its stake in Global Business Travel Group are being used to fund a portion of the $336 million pretax restructuring charge.
Risk Factors
  • American Express shares are down roughly 17% versus the start of 2026 following mixed Q3 results and announced job cuts.
  • Billed business of $454 billion came in below the $457 billion consensus, partly reflecting the exit from small-business co-brand relationships.
  • Q3 expenses increased 9% to $14.5 billion, with rewards costs and marketing expenses rising by 10% and 11%, respectively.
  • Reported EPS of $5.42 benefited from a one-time business-travel investment sale, making the headline profit growth less representative of underlying operating momentum.
Full Analysis
American Express (AXP) shares declined following mixed Q3 earnings and an announcement of approximately 3,500 global job cuts, representing about 5% of its workforce. CEO Stephen Squeri stated the restructuring aims to remove organizational layers, accelerate decision-making, and position the company for greater agility in the AI era. The move is part of a broader effort to simplify operations and control costs amid persistent spending pressures. Financially, AXP reported adjusted earnings per share (EPS) growth of 13% year-over-year, raising its full-year guidance bottom end to $17.60. However, billed business fell short of consensus at $454 billion versus the expected $457 billion, partly due to exiting small-business co-brand relationships. The company recorded a $336 million pretax restructuring charge, partially funded by the sale of its stake in Global Business Travel Group. Despite the stock's 17% decline from the start of 2026 and concerns over earnings quality driven by one-time gains, Wall Street analysts maintain a 'Moderate Buy' rating with a mean price objective of $369. Investors view the post-earnings dip as a potential buying opportunity, betting that cost savings from the layoffs will offset rising rewards and marketing expenses to support future growth.