Microsoft prices $25 billion bond sale after offering employee buyouts

Technology · First reported 2 Nov, 15:35 · Updated 16:28

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Microsoft priced a $25 billion bond sale three days after announcing voluntary exit packages for about 60,000 eligible employees. The company said the funds would support general corporate purposes, including capital spending, as it forecasts about $175 billion in capital expenditure for 2026.

The bond sale drew orders of up to $115 billion and comprises ten tranches maturing from 2028 to 2066.
The voluntary offer, announced October 26, applies to eligible employees in participating teams; Microsoft expects 3,000 or fewer to accept.
Microsoft reported quarterly revenue growth of 19% and Azure revenue growth of 48%, and said Azure demand exceeded supply.

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Key facts

Bond sale: $25 billion, in ten tranches maturing from 2028 to 2066.
Orders: Peaked at $115 billion, about 4.6 times the amount offered.
Buyout offer: Announced October 26 for eligible employees in participating teams; Microsoft expects 3,000 or fewer takers.
2026 capital expenditure forecast: About $175 billion.