Microsoft Turns To Bond Markets For $25 Billion Just Days After Announcing Exit Packages For 60,000 Employees

Just a few days after offering voluntary exit packages to around 60,000 employees, Microsoft has priced a $25 billion bond sale, its first US investment-grade debt offering since 2017.

The move comes as the company prepares for capital expenditure of around $175 billion in 2026, with artificial intelligence (AI) data centre investments adding to its spending requirements.

The bonds attracted $115 billion in orders, around 4.6 times the amount offered. The sale comprises ten tranches with maturities ranging from 2028 to 2066. Fixed-rate coupons range from 4.85% to 6.35%, while two floating-rate tranches are worth $1 billion each.

The Microsoft $$25 billion bond sale is scheduled to close on 04 November 2026.

AI Spending And Azure Demand Drive Funding Needs

Microsoft reported 19% revenue growth and a 21% rise in operating income for the quarter. Azure revenue increased 48%. The company said demand for Azure continues to run ahead of supply and highlighted efforts to bring additional capacity online faster.

The company’s Chief Financial Officer (CFO), Amy Hood, said Microsoft had access to debt markets because of its credit ratings and had not previously used that funding option. Microsoft last raised $17 billion through a US investment-grade bond offering in 2017.

Microsoft Expects Limited Uptake Of Employee Exit Offer

Microsoft announced a voluntary exit programme on 26 October 2026 for eligible employees at level 70 and below in participating teams. The Microsoft voluntary exit offer covers staff in India, the US, Canada and the UK. It applies to more than a quarter of the company’s 223,000 full-time employees.

A company spokesperson said Microsoft expects 3,000 or fewer employees to accept the offer. That would represent 5% or less of those eligible. The Microsoft employee buyout programme supports employees who choose to leave.

The two developments come as Microsoft works to expand its AI and cloud infrastructure. The company is due to discuss its AI and cloud plans at its Ignite event from 17 to 20 November 2026.

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