Microsoft is seeking at least $25 billion through a U.S. bond offering of 10 tranches with maturities from two to 40 years, returning to the investment-grade market for the first time in more than nine years. Its last high-grade issuance, in 2017, raised $17 billion, and proceeds will fund general corporate purposes such as capital expenditures, working capital, share repurchases, acquisitions and debt repayment. The sale follows a fiscal first-quarter earnings report showing strong cloud growth, as major technology companies increase spending on AI infrastructure. Initial price guidance ranges from 50 to 55 basis points over Treasuries for the two-year notes to 130 to 135 basis points for the 40-year bonds due 2066.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
bondsMSFTcloud computingAI investment
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
• NeutralMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/28/2026 | 530.83 |
| Change that session | -0.09% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Microsoft posts 32% rise in Q1 FY27 net income to $36.6bn
Microsoft reported net income of $36.6bn for the quarter ending 30 September 2026 (Q1 FY27), up 32% year on year. Revenue reached $92.3bn, up 19%, and operating income rose 21% to $45.9bn; on a non-GAAP basis, which adjusts for investments in OpenAI, net income was $36.4bn, up 18%. Microsoft Cloud revenue climbed 30% to $63.9bn and Azure grew 48%, while Devices and Consumer revenue fell 3% to $15.5bn. The company returned $10.2bn to shareholders through dividends and share repurchases in the quarter. Microsoft recently introduced a voluntary buyout scheme for around 60,000 employees, over a quarter of its global staff, as it seeks to control costs and fund AI investment.
- Microsoft: 3 Key Takeaways for Long-Term Investors
On its fiscal first-quarter 2027 earnings call on Oct. 28, 2026, Microsoft said Microsoft Cloud revenue surpassed $63 billion, up 30% year over year. Management highlighted a shift from fixed per-seat subscriptions to consumption billing for autonomous Copilot agents, with customers consuming credits up over 75% in the quarter, Foundry revenue more than tripling on GPU efficiency gains, and first-party MAI models aiming to match frontier performance within 3 to 6 months at a fraction of the training cost. Microsoft added 24 data centers across 5 continents and cut dock-to-live times for new GB300s by about 20% quarter over quarter, while planning $170 billion in annual capital expenditure. Management said it has never been more confident in the long-term returns on its investments.
- CRWV, NBIS, IREN, APLD Stocks Drop After Microsoft Capex Falls Short On Delayed Third-Party Capacity
Neocloud stocks fell overnight after Microsoft reported fiscal Q1 CapEx of $45.2 billion, up about 30% year on year but below the $50.7 billion StreetAccount estimate and its own target of around $50 billion. Microsoft blamed delays in some third-party cloud capacity under contract, and CFO Amy Hood said CapEx would exceed $50 billion in Q2 and about $170 billion for the calendar year. Alphabet's Q3 CapEx of $51.36 billion also came in below the $55.09 billion expected, which investors read as a sign that capacity ramp-up at neocloud firms could slow. CoreWeave fell 5.8%, Nebius 6.3%, Iren 5.3% and Applied Digital 4.3%, while Iren had raised $363 million by refinancing recently purchased AI computing equipment through a six-lender syndicate. Bank of America also disclosed a 4.1% stake in Iren.
- Microsoft and Alphabet Just Reported Earnings, Putting the AI Boom to the Test
Alphabet and Microsoft both reported quarterly results, with cloud growth strong at both, but the market reacted differently: Microsoft shares rose after hours while Alphabet fell. Microsoft's revenue rose 19% to $92.3 billion, and adjusted EPS of $4.89 topped the roughly $4.72 Wall Street expected; Azure grew 48% to $33.17 billion. Alphabet's revenue rose 25% to $127.6 billion, but GAAP EPS fell from $2.87 to $2.12, partly due to an $8.7 billion net loss on equity securities. The article's main concern is Alphabet's cash: capex of $51.4 billion left free cash flow at negative $9.1 billion, while Microsoft remained positive at $18.63 billion, though down 27%. Alphabet's long-term debt rose from $46.5 billion to $125.1 billion, and it expects capex to “increase significantly” in 2027; the author questions whether these AI investments will pay off over the long term.
- Microsoft beats expectations fueled by Azure cloud business
Microsoft shares rose more than 5% on Wednesday afternoon after the company reported revenue and profit above expectations, driven by its Azure cloud unit, which grew 48% in the September quarter. Total revenue reached $92.3 billion and profit exceeded $36.6 billion, compared with FactSet analyst estimates of about $90.6 billion and $35.1 billion. Days earlier, Microsoft offered voluntary buyouts to about 60,000 employees, roughly a quarter of its workforce, its second such offer this year. Headcount fell to 223,000 at the end of June from 228,000 at the end of 2025. Capital expenditures reached $45.2 billion, mostly on short-lived assets such as memory chips and storage, and the company expects more than $50 billion in the final quarter of 2026, bringing full-year spending to $170 billion.
- Microsoft results to test whether AI investment is paying off
Microsoft reports fiscal first-quarter results after the close on Wednesday, with investors looking for evidence that heavy AI investment is driving growth, and will disclose Azure revenue in dollars for the first time. Wall Street expects revenue of about $90.6 billion to $90.7 billion for the quarter ended September 30, up 16.6% from $77.67 billion, and EPS of $4.71 to $4.72 versus $4.13 a year earlier. The revenue consensus sits near the upper end of guidance of $89.85 billion to $90.95 billion. Microsoft has also moved to two reporting segments, Agents and Infra (about 81% of revenue and 88% of operating income based on recast fiscal 2026 figures) and Devices and Consumer. Capital expenditure including leases is expected to exceed $45.9 billion, up from $19.3 billion a year earlier, while remaining performance obligations stand at about $678 billion and recent price targets reach about $665.
Related markets
Latest news
- Microsoft beat estimates while Google looks at a value hit, and rising risks at Nvidia
The 8:30 show covers the day's top stories, including earnings from Microsoft (MSFT) and Alphabet (GOOGL)(GOOG), mounting risks at Nvidia (NVDA), and the new touchscreen laptop Apple (AAPL) just debuted.
- European Central Bank keeps key interest rate on hold at 2.5%
The European Central Bank held its deposit facility rate at 2.5% on Thursday, as expected, after a 25 basis point hike in September, even though euro zone headline inflation rose to 3.8% last month, the highest since September 2023. The Governing Council said rising energy prices pose upside risks to inflation and downside risks to growth, while underlying inflation and wages are broadly stable and financing conditions have tightened. Energy price inflation reached 18.8% amid Middle East turbulence. Deutsche Bank's Mark Wall said the policy path is harder to predict and expected one more hike to 2.75% in December, probably the end of the hiking cycle, while Christine Lagarde is still president. He added that the institution is bigger than any one person, but uncertainty remains about decisions next year after Lagarde's announced departure.
- Tech stocks hit hard after Samsung, Fortinet, and ServiceNow miss earnings
Samsung expects capital expenditure to rise 60% to $63 billion this year as it competes with SK Hynix and Micron, but its chip division operating income came in 2% below estimates and it is holding off on future shareholder payout plans until January. Fortinet's weak results hit cybersecurity stocks, and ServiceNow showed slowing bookings growth. A Bloomberg report said Marvell is in talks to buy Lumentum in a big deal, and Marvell shares fell sharply. The hosts said concerns over AI spending, financing costs, and Alphabet's business model are real, not just sentiment.
- Alphabet heads for a $400 billion drop in market value, the biggest in its history
Alphabet (GOOGL) fell about 13% in early trading Thursday after third-quarter results, putting it on track to erase more than $400 billion in market value, the second-biggest one-day loss ever for a US-listed company behind Nvidia's roughly $593 billion on Jan. 27, 2025. Google Cloud revenue more than doubled to about $31 billion and the Gemini app passed 1 billion users, but search revenue rose 12% to about $63 billion, short of the roughly $65 billion estimate. Free cash flow swung to a loss of about $9 billion as AI spending climbed, and the company's stakes in AI labs also weighed. Pivotal Research CEO Jeffrey Wlodarczak said bears will argue AI is starting to seriously hurt the search business, while CFRA's Angelo Zino said the pullback probably represents an opportunity. Alphabet has lost more than $1.3 trillion since its May record, and Amazon's results after Thursday's close will show whether the problem is specific to Google's search business.
- Monetary policy decisions
The ECB Governing Council decided to keep its three key interest rates unchanged: 2.50% on the deposit facility, 2.65% on main refinancing operations and 2.90% on the marginal lending facility. Energy prices have kept rising, posing upside risks to inflation and downside risks to growth, while underlying inflation has been broadly stable and wages show no material response yet. Financing conditions have tightened since the last meeting, which is likely to weigh on inflation and growth. The Council aims for inflation to stabilise at its 2% target in the medium term, is not pre-committing to a rate path, and stands ready to adjust all its instruments within its mandate.
- The Economy Could Be Growing Too Fast for Warsh
The Fed held its target range at 3.75% to 4% on October 28, 2026, in a 10-2 vote, with Lisa D. Cook and Beth M. Hammack favoring a 25-basis-point hike. Chair Kevin Warsh said first-half GDP was revised up to 2.4% from 1.8% and third-quarter growth is likely above 3%, but pushed back on the idea that the economy is overheating. The Atlanta Fed's GDPNow stood at 3.3%, and a futures-based measure put the odds of a December hike at 86.0%. Headline PCE inflation was 3.4% in August and core was 3.0%, mostly tied to energy and core goods affected by the Middle East conflict and tariffs, which rate hikes do little to address. SPY is up 13.26% year to date, but its large tech holdings make it sensitive to a 10-year yield above 5%, and its outlook weakens if September core PCE tops 0.3% or the yield passes its October 5 high of 5.31%.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.