India, Nov. 20 -- Walmart's international business saw a sharp drop in profit in the September (Q3 FY26) quarter after it booked a $700 Mn non-cash, share-based compensation charge tied to PhonePe's upcoming IPO.

Walmart said the third-quarter GAAP earnings for its international arm were hit by a one-time, non-cash charge of about $700 Mn linked to PhonePe's share-based compensation.

In its post earnings call, the retail giant's CFO John David Rainey explained that the expense stemmed from a revaluation of share-based compensation in its Indian fintech subsidiary in the run up to its IPO.

As PhonePe's implied valuation rises ahead of a listing, accounting rules require Walmart to recognise the increased cost of equity granted to employ...