American Express Stock Shocks Despite Positive Revenue and Earnings

American Express shares closed 3.62% lower on Friday even though the credit card company beat third-quarter profit estimates and said it would cut about 5% of its 77,000-person global workforce as it prepares for AI, incurring a $336 million restructuring charge. CFO Christophe Le Caillec said the cuts are meant to make Amex leaner and more agile before automating processes. Earnings per share rose 13%, but pretax profit grew only 1.6%, with much of the gain coming from a lower tax bill and buybacks; revenue missed expectations. Amex raised its annual profit forecast, though the increase was largely from a one-time gain on selling a business stake.