American Express: 3 Key Takeaways for Long-Term Investors

Source The Motley Fool

Key Points

  • Restructuring charge of $336 million will eliminate 5% of global positions.

  • Quarterly revenue reached a record $20 billion, up 9% year over year.

  • Merchant acceptance reached over 190 million locations globally.

  • 10 stocks we like better than American Express ›

On its third quarter of 2026 earnings call, held on Oct. 23, 2026, American Express (NYSE:AXP) reported record quarterly revenues of $20 billion and reaffirmed its full-year revenue growth target of 10%. Expanding total revenue while sustaining high customer retention gives the business predictable cash flow to reinvest in technology and expand global merchant coverage. Three things management said stand out.

1. Eliminating 5% of Positions Globally to Boost Operational Agility

Management recorded a $336 million corporate restructuring charge to eliminate roughly 5% of global positions, streamlining management layers to accelerate product delivery and fund strategic growth priorities.

With that objective in mind, earlier this year, I asked the senior leadership team to identify ways to streamline their organizations, align their teams on the most critical deliverables, and reduce layers to speed decision-making.
-- Steve Squeri, Chairman and Chief Executive Officer

2. Embedding Membership Assets Into Artificial Intelligence Tools

Rather than relying on artificial intelligence solely for operational productivity, the enterprise is integrating its card rewards, travel booking services, and dining reservations into conversational platforms to capture customer spending wherever financial decisions occur.

Our goal is to have membership travel with our card members throughout these new AI-powered experiences, shaping recommendations, securing payments, activating the right value, and supporting the customer afterward.
-- Steve Squeri, Chairman and Chief Executive Officer

3. Premium Customer Base Is Elevating Portfolio Credit Quality

Focusing card acquisition on creditworthy customers who pay annual card fees strengthens overall credit performance, keeping delinquent accounts low while stabilizing variable customer engagement, or VCE, which tracks rewards and cardmember service expenses.

As we focus more on fee-paying card members, as we focus more on VCE, we are attracting card members that have a great credit profile, and that slowly improving the credit metrics across the portfolio.
-- Christophe Le Caillec, Chief Financial Officer

Looking Ahead

Cardmember travel spending continues to expand, reflecting steady demand across premium segments. To capitalize on this, American Express formed a partnership with Airbnb.

We know that card members enjoy the exceptional variety and scope of Airbnb's network of unique locations, and we are excited to bring over 1 million listings globally into our Amex Travel program, as well as expanding travel benefits for eligible U.S. card members.
-- Steve Squeri, Chairman and Chief Executive Officer

A proprietary closed-loop network and direct customer relationships provide durable competitive advantages as leadership prioritizes underwriting discipline and global merchant acceptance. Management is combining targeted investments with operational discipline to capture long-term growth opportunities.

We are on track to deliver another year of 10% revenue growth and mid-teen EPS growth, and more importantly, we have momentum to sustain strong results in the years ahead.
-- Steve Squeri, Chairman and Chief Executive Officer

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American Express is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends Airbnb and American Express. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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