Microsoft seeks at least $25 billion in US bond sale, its first since 2017
The company also returned $10.2 billion to shareholders in its latest quarter.
Published · Updated
UpdateThursday, October 29, 2026 at 7:55 AM ET
Management says capital spending will accelerate in the second half, because deliveries of third-party capacity are shifting later. The timing comes with the guidance for about $170 billion of spending in the calendar year, which the piece above already reports.
Microsoft is looking to raise at least $25 billion through a sale of bonds in the US market. It is returning to the high-grade market, the tier of company debt seen as least likely to default, for the first time since 2017.
Microsoft expects about $170 billion of capital spending in the calendar year, and says it will stay cash flow positive through fiscal 2027. Its chief financial officer set out that outlook in guidance given days before this deal. In its latest quarter, the company returned $10.2 billion to shareholders through dividends and share repurchases. It beat the earnings forecast, but revenue fell short of expectations.
The size of the sale gives a firmer figure to the borrowing side of the artificial intelligence buildout than the spending guidance alone. Microsoft has also ordered a 20 per cent cut in cloud costs and has offered buyouts to 60,000 workers. Together, the moves point to borrowing, tighter spending and fewer staff being used at the same time, rather than relying on operating cash flow alone to pay for the buildout.
© Raydn · raydn.us