Microsoft posts $92.28B quarterly revenue and plans $25B bond sale for AI spending

what happened

According to TradingView, Microsoft reported first-quarter revenue of $92.28B, up 18.8% from a year earlier. Net income came in at $36.63B, and diluted earnings per share were $4.92. Revenue from Microsoft Cloud climbed 30% to $63.9B, while Azure growth sped up to 48%, ahead of the company's own forecast.

At the same time, Microsoft is placing $25B of unsecured senior notes, with $23B at fixed rates and $2B at floating rates. The deal spans 10 maturities, and the proceeds will go toward capital spending, acquisitions and refinancing. Settlement is expected on November 4. Chief Financial Officer Amy Hood said the company may turn to outside funding when conditions are favorable, and that it has already relied on leases to expand its infrastructure.

The five-year credit default swap on Microsoft widened from 47 to 55 basis points, yet it remains the lowest among Big Tech companies. Separately, from February 1, 2027, the company will introduce a single opt-out for publishers who do not want their content used to train future AI models.

why it matters

Two signals point in different directions for markets. Strong cloud momentum supports expectations for revenue and the shares, while a large bond issue adds supply of the company's debt and could weigh on bond prices and spreads. Credit risk priced by the market is still among the lowest in the sector.

market impact

Microsoft shares and bonds: strong cloud results support the stock, while the new $25B debt weighs on the bonds

• ▲Microsoft shares pressure up — Azure growth above the company's forecast supports expectations for cloud revenue
• ▼Microsoft bonds pressure down — a new $25B issue adds to the supply of the company's debt

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