Why is American Express stock sliding today?

American Express stock slid 2.4% in pre-open trading after the payments giant announced plans to eliminate approximately 5% of its global workforce, or roughly 3,500 positions.

The move came as the company reported its third-quarter earnings before the market open, posting adjusted EPS of $4.68 — a beat versus the roughly $4.49–$4.51 consensus — while revenue of $20.06 billion came in just shy of the $20.12 billion analysts had expected.

Total network volume of $517.9 billion fell short of the $519.5 billion estimate, signaling a modest softening in card-spending momentum that investors found difficult to overlook.

CEO Stephen Squeri noted that "business momentum continues, with strength in billings, new acquisitions and Card Member retention, and excellent credit quality," but the top-line miss overshadowed the upbeat commentary.

Management raised its full-year 2026 adjusted EPS guidance to a range of $17.60–$17.90, with the midpoint at or slightly above the Wall Street consensus, and reaffirmed its target of approximately 10% revenue growth for the year.

Analysts noted that the EPS beat was partly aided by lower-than-expected loan-loss provisions and a favorable tax rate, rather than purely organic revenue strength, which tempered enthusiasm. The stock’s roughly 6% gain over the prior month also set a high bar, making an in-line revenue print insufficient to sustain the rally.

The broader market backdrop added modest headwinds. The S&P 500 is down 0.4% today, the Dow Jones is off 0.8%, and the Nasdaq is lower by 0.3%, as Wall Street continues to digest the prior session’s sharp tech-driven selloff — during which AI spending concerns sent the Nasdaq down roughly 2.6% and the S&P 500 down roughly 1.2%.

Flash PMI data for October was also on the economic calendar for today, keeping traders cautious ahead of fresh activity readings. The VIX had risen notably in Thursday’s session, reflecting elevated uncertainty across the market.

Taken together, a workforce reduction announcement and a stock that had already priced in optimistic expectations drove the pre-market decline.