American Express Global Business Travel’s third quarter was marked by strong top-line growth but significant margin pressure, with the market reacting negatively to the results. Management attributed the revenue acceleration to the recent acquisition of CWT and ongoing momentum in the core business, citing higher transaction volumes, increased average ticket prices, and robust customer retention. CEO Paul Abbott highlighted the importance of the CWT deal, describing it as an “important milestone for growth and value creation,” while also noting the integration’s immediate impact on both revenue and operating expenses. Despite the revenue gains, adjusted operating margins declined notably year-over-year, as incremental costs from CWT and ongoing investments weighed on profitability.
Is now the time to buy GBTG? Find out in our full research report (it’s free for active Edge members).
American Express Global Business Travel (GBTG) Q3 CY2025 Highlights:
- Revenue: $674 million vs analyst estimates of $613 million (12.9% year-on-year growth, 10% beat)
- Adjusted EPS: $0.07 vs analyst expectations of $0.12 (43.5% miss)
- Adjusted Operating Income: $12 million vs analyst estimates of $79.41 million (1.8% margin, 84.9% miss)
- Operating Margin: 1.8%, down from 4.5% in the same quarter last year
- Transaction Value: 9.52 billion, up 1.77 billion year on year
- Market Capitalization: $3.76 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From American Express Global Business Travel’s Q3 Earnings Call
-
Lee Horowitz (Deutsche Bank) asked about the outlook for corporate travel demand in light of customer budget expectations and the impact of the “big beautiful bill.” CEO Paul Abbott said recent surveys indicate either stable or moderately improving travel budgets for 2026, and he expressed cautious optimism about organic growth and meetings bookings.
-
Duane Pfennigwerth (Evercore ISI) inquired about underlying macro trends for business travel and how demand now compares to earlier in the year. Abbott explained that the expected improvement in demand materialized in Q3, and management anticipates further organic growth in Q4.
-
James Goodall (Rothschild and Co-Redburn) questioned which metrics will be used to assess the success of the new SAP Complete and Egencia solutions. Abbott responded that management will track growth acceleration, customer retention, delivered savings, and the share of digital transactions.
-
Stephen Ju (UBS) sought clarity on Egencia’s recovery to pre-pandemic levels and the strategies for unlocking SME market growth. Abbott emphasized significant runway in the SME segment and cited investments in product evolution and the SAP partnership as key enablers.
-
Toni Kaplan (Morgan Stanley) probed the competitive landscape for AI-powered travel platforms and how AI efficiencies are factored into future earnings. Abbott and CFO Karen Williams underscored AI’s role in both revenue and cost improvements, and stated that further efficiencies could enhance profitability beyond current projections.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will focus on (1) the pace and impact of synergy realization from the CWT integration, (2) adoption and customer feedback for the new SAP Complete and next-gen Egencia solutions, and (3) continued progress in expanding the SME customer base through cross-selling and digital initiatives. Execution on AI-driven operational improvements and updates on margin recovery will also be closely monitored.
American Express Global Business Travel currently trades at $7.20, down from $8.11 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
