Amazon Completes $25 Billion Bond Sale, Raising 2026 Debt Total to $92 Billion

Amazon completed a $25 billion bond sale on July 7, bringing its total debt issued in 2026 to $92 billion, Fortune reported. That figure exceeds the amounts issued individually by Alphabet, Meta, and Oracle so far this year. The company offered 18 to 21 basis points of extra yield on its longest bonds to complete the transaction.

Orders reached 2.5 times the bonds on offer, down from 3.2 times in its March sale. Bank of America described the overall new-issue performance as the weakest for any hyperscaler since Meta's $30 billion bond sale in October 2025. Moody's rates Amazon's debt AA and S&P rates it S1.

Amazon issued the bonds in eight tranches ranging from three to 40 years. Hyperscaler bond spreads expanded between six and 15 basis points on July 7, while the 10-year Treasury yield rose eight basis points. Amazon will direct the proceeds to its cloud computing business AWS.

CEO Andy Jassy said at the April earnings call that faster AWS growth leads to higher short-term capital expenditures because the unit must pay cash for land, power, buildings, chips, servers, and networking gear in advance. Chief financial officer Brian Olsavsky stated that Q1 2026 capital expenditures totaled $43.2 billion, directed toward both AWS and generative AI.

Amazon's free cash flow over the trailing 12 months ending Q1 2026 fell to $1.2 billion from $25.9 billion a year earlier, driven by a $59.3 billion year-over-year increase in property and equipment purchases.

Operating cash flow reached $148.5 billion in the same period, up 30 percent. AI-related bonds issued in 2026 total almost double the $136 billion issued in the sector for all of 2025. Bank of America estimates $194 billion of the $270 billion in AI-related debt issued this year came from hyperscalers.