Microsoft Taps Bond Market for $25B, Drawing $100B+ in Orders
MSFT sits 52% above its 52-week low of $349.2.
Summary
Microsoft is raising about $25 billion in its first US investment-grade bond sale in more than nine years, with order books exceeding $100 billion — over four times the deal size. The debt is being sold in as many as 10 tranches with maturities from 2 to 40 years, managed by Wells Fargo, JPMorgan and UBS. The demand is the story: a mega-cap borrowing at this scale and getting covered four times over shows debt markets are wide open for AI capex, and Microsoft is locking in funding while preserving cash flow. It follows CFO Amy Hood's comment on yesterday's earnings call that the company would pursue additional funding sources when attractive, and comes a day after Q1 FY27 results showed $92.3 billion in revenue and $39.4 billion of quarterly capex. Microsoft still expects positive free cash flow through June 2027, unlike Alphabet and Meta, which were punished for cash burn this week. Shares slipped 0.7% in afternoon trading.
At the time of this announcement, MSFT was trading at $529.05 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.9T. The 52-week trading range was $349.20 to $551.15. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: CNBC TV18.