GAAP net income in the fiscal third quarter was $5.3 billion or $2.69 per share, an increase of 8% and 12%, respectively, over prior year’s results. Current year's results included a special item of $615 million for a litigation provision associated with the interchange multidistrict litigation case and other legal matters, according to a press release.
Current year results also included $35 million of net losses from equity investments and $73 million from the amortization of acquired intangible assets and acquisition-related costs. Prior year’s results included special items of $118 million related to the release of the indirect tax reserve previously recognized in fiscal 2021, $67 million related to the donation of investment securities to Visa Foundation, and $10 million for a litigation provision associated with the MDL case. Prior year’s results also included $22 million of net losses from equity investments and $76 million from the amortization of acquired intangible assets and acquisition-related costs. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $5.8 billion or $2.98 per share, increases of 19% and 23%, respectively, over prior year’s results (refer to Non-GAAP Financial Measures for further details). GAAP earnings per share growth was approximately 12% on a constant-dollar basis, which excludes the impact of foreign currency fluctuations against the U.S. dollar. Non-GAAP earnings per share growth was approximately 23% on a constant-dollar basis. All references to earnings per share assume fully diluted class A share count.
Net revenue in the fiscal third quarter was $10.2 billion, an increase of 14%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenue increased 14% on a constant-dollar basis.
Payments volume for the three months ended March 31, 2025, on which fiscal third quarter service revenue is recognized, increased 8% over the prior year on a constant-dollar basis. Payments volume for the three months ended June 30, 2025 increased 8% over the prior year on a constant-dollar basis.
Cross-border volume excluding transactions within Europe, which drives our international transaction revenue, increased 11% on a constant-dollar basis for the three months ended June 30, 2025. Total cross-border volume on a constant-dollar basis increased 12% in the quarter. Total processed transactions, which represent transactions processed by Visa, for the three months ended June 30, 2025, were 65.4 billion, a 10% increase over the prior year. Ryan McInerney, Chief Executive Officer, Visa, commented on the results Visa delivered another strong quarter, with 14% net revenue growth, 12% GAAP EPS growth and 23% non-GAAP EPS growth. Healthy business driver trends continued through the quarter and into the first few weeks of July. Consumer spending remains resilient, with continued strength in discretionary and non-discretionary growth in the U.S. Looking ahead, our continued focus on innovation and product development in dynamic areas like AI and stablecoins is helping to shape the future of commerce while delivering sustainable, long-term value for our shareholders.
Fiscal third quarter service revenue was $4.3 billion, an increase of 9% over the prior year, and is recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenue rose 15% over the prior year to $5.2 billion.
International transaction revenue grew 14% over the prior year to $3.6 billion. Other revenue of $1.0 billion rose 32% over the prior year. Client incentives were $4.0 billion, up 13% over the prior year. GAAP operating expenses were $4.0 billion for the fiscal third quarter, a 35% increase over the prior year results, primarily driven by increases in the litigation provision and personnel expenses. GAAP operating expenses included the special items as well as the amortization of acquired intangible assets and acquisition-related costs in the current and prior year. Excluding these items, non-GAAP operating expenses increased 13% over the prior year, primarily driven by increases in personnel, general and administrative, and depreciation and amortization expenses.
GAAP non-operating income was $156 million for the fiscal third quarter, including $35 million of net equity investment losses. Excluding this item, non-GAAP non-operating income was $191 million. GAAP effective income tax rate was 16.7% for the quarter ended June 30, 2025. Excluding the related tax impacts from the non-GAAP items noted above, the non-GAAP effective income tax rate was 17.3% for the quarter ended June 30, 2025.
Cash, cash equivalents and investment securities were $20.4 billion at June 30, 2025. The weighted-average number of diluted shares of class A common stock outstanding was 1.96 billion for the quarter ended June 30, 2025.
