Microsoft priced $25 billion of senior notes across 10 tranches.
Why it matters: The offering comes as Microsoft reports 19% year-over-year revenue growth and a $20 billion year-over-year increase in quarterly property-and-equipment additions. Offering documents permit general corporate uses, rather than dedicating the proceeds exclusively to AI infrastructure.
- The 10 tranches mature from November 3, 2028, through November 3, 2066.
- The offering includes $2 billion of floating-rate notes and $23 billion of fixed-rate notes, with fixed coupons from 4.85% to 6.35%.
- Microsoft reported fiscal 2027 first-quarter revenue of $92.3 billion, up 19% year over year.
- Offering documents list capital expenditures, acquisitions, share repurchases, working capital and debt repayment as potential uses.
Microsoft priced $25 billion of senior unsecured notes on October 29, 2026, across 10 tranches. The notes mature from November 3, 2028, through November 3, 2066, and settlement is expected on November 4, 2026.
The offering includes $2 billion of floating-rate notes and $23 billion of fixed-rate notes. Fixed coupons range from 4.85% to 6.35%. The notes rank equally with Microsoft's other unsecured and unsubordinated debt, according to the SEC filing.
The offering documents say proceeds may be used for capital expenditures, acquisitions, share repurchases, working capital and debt repayment. That general-corporate-purpose language means the proceeds are not earmarked exclusively for AI infrastructure.
Microsoft reported fiscal 2027 first-quarter revenue of $92.3 billion, up 19% year over year. Operating income rose 21% to $45.9 billion, Microsoft Cloud revenue increased 30% to $63.9 billion and Azure revenue grew 48%.
For the quarter ended September 30, 2026, Microsoft's Form 10-Q reported $58.0 billion in operating cash flow and $42.0 billion in cash used in investing. Additions to property and equipment increased $20.0 billion year over year, according to the filing.
The SEC-filed pricing term sheet lists senior unsecured debt ratings of AAA from S&P Global Ratings and Aaa from Moody's, both with stable outlooks.
By the numbers
- $25 billion - total senior-note offering
- 19% - year-over-year increase in fiscal 2027 first-quarter revenue
- $20 billion - year-over-year increase in quarterly additions to property and equipment
Yes, but: The general-corporate-purpose language does not show how much of the proceeds Microsoft will direct to AI infrastructure or any other use.
What's next: Settlement is expected on November 4, 2026.