PhonePe Esop expenses weigh on Walmart’s Q3 operating income

US retail giant Walmart’s operating income fell 0.2% in the third quarter of fiscal 2026 due to employee stock option-related expenses at its subsidiary PhonePe, ahead of the digital payments firm’s planned public listing in India.

For the quarter ended on October 31, Walmart’s operating revenue rose 5.8% from a year earlier to $179.5 billion, while gross profit rate stood at 24.2%.

PhonePe in September filed a draft red herring prospectus through the confidential route with the Securities and Exchange Board of India for an initial public…