Microsoft Raises $25 Billion in Bond Sale, Its First Since 2017, as AI Spending Surges

3 Nov 2026 , 11:20 AM

Microsoft has raised $25 billion in debt, its first US investment-grade bond offering since 2017, when it raised $17 billion. The proceeds will go towards general corporate purposes, including capital expenditure. The deal closes on November 4.

Bond sale details

The offering was priced in 10 tranches maturing between 2028 and 2066. Fixed rates range from 4.85% on the 2028 notes to 6.35% on the 2066 notes, and there are two floating-rate tranches of $1 billion each. Orders reached about $115 billion, roughly 4.6 times the amount sought. CFO Amy Hood had earlier said Microsoft had not tapped debt markets despite having access.

Credit strength

Microsoft is rated AAA by both Moody’s and S&P, one of only two US public companies with that status. The other is Johnson & Johnson.

Why Microsoft is borrowing

Microsoft’s projected capex is about $175 billion for 2026, aimed at expanding data centres, servers and AI infrastructure. Azure revenue grew 48% last quarter, and Hood said demand still exceeds supply. Group revenue rose 19% and operating income rose 21%.

Industry context

Hyperscalers and data centre developers have raised over $313 billion through investment-grade bonds globally this year, nearly three times the 2025 total. Alphabet raised $25 billion in debt in August, while Meta raised the same amount through an equity deal.

Voluntary exit programme

Separately, Microsoft announced a voluntary exit programme on October 26 for employees at level 70 and below in the US, India, Canada and the UK. It covers about 60,000 people, over a quarter of the roughly 223,000-strong workforce. Eligible teams include AI experiences, Copilot, finance, HR, Xbox, and Windows + Devices, while marketing, commercial business and security are excluded.

Microsoft expects 3,000 or fewer employees (about 5% of those eligible) to accept. Hood said very few are expected to leave because of growth opportunities inside the company.

Earlier workforce moves

Earlier this year, Microsoft offered voluntary retirement to about 9,000 US employees, and around one-third accepted. In July, it announced 4,800 job cuts, about 2.1% of staff.

The takeaway

The bond sale and the exit offer are separate decisions, and Microsoft has not linked them. Investors will look to the Ignite conference, running November 17-20, for more on the company’s AI and cloud strategy.