Microsoft's 2026 pricing actions are the most aggressive enterprise price increases since 2010. Five distinct actions span M365, Azure, Copilot, Dynamics, and Power Platform. The contractual hedges that lock pre increase pricing exist; they require negotiation in 2025 or early 2026. Customers who renew before the increase takes effect lock pre increase pricing for the term.
The largest single 2026 price action. M365 E3 list price rises from $36 per user per month to approximately $40 to $42; E5 from $57 to $65 to $67. The increase applies to new and renewed contracts after the announced effective date. Customers with EAs renewing in 2026 face the increase fully; customers renewing before the effective date can lock pre increase pricing through the term.
Azure regional list pricing rises 5 to 10 percent across most regions and most service categories. Reserved Instances and Savings Plans partially insulate against the increase for the duration of the reservation; consumption-based pricing is fully exposed. The MACC commitment discount math shifts as the underlying list pricing rises.
Copilot for Microsoft 365 retains its $30 per user per month price. The bundling structure changes: Copilot is increasingly included in Premium tier definitions or required for certain advanced features, effectively converting the explicit $30 line into bundled inclusion. Customers with active Copilot decisions face indirect uplift through the bundling rather than direct uplift through the price.
Dynamics 365 modules see the least-noticed price action. Sales Enterprise rises 11 percent, Customer Service Enterprise 12 percent, Field Service 14 percent. Customers running Dynamics at scale face material total cost increases; the action is rarely on the radar of CIOs focused on M365 and Azure.
Power Apps and Power Automate per user and per app pricing rises approximately 8 percent. Citizen developer programs at scale face material increases. The Power Platform pricing changes alongside the Microsoft Fabric pricing structure that emerged in 2024.
Three contractual provisions lock pre increase pricing through a renewal term. Multi year price hold language explicitly fixes unit pricing for the contract duration. Pricing schedule appendices that reference specific 2025 list prices rather than future list prices. Renewal options at fixed pricing that provide a unilateral right to extend at the locked rate.
This white paper draws on Redress Compliance engagements with Microsoft enterprise customers monitoring 2025 and 2026 pricing announcements, public Microsoft pricing disclosures, and the active Redress benchmark program covering Microsoft pricing. Where benchmark figures appear, they reflect announced or telegraphed pricing positions as of May 2026.
Morten leads Redress Compliance's Microsoft, IBM, AWS, Salesforce, and Cisco practices. He tracks Microsoft pricing changes across each fiscal cycle on behalf of more than 70 enterprise clients.
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