How much is Microsoft 365 E5 increasing in 2026?

E5 list pricing rises from about 57 to about 60 dollars per user per month on July 1, 2026, roughly a five percent increase, paired with new capabilities folded into E5.

When does the increase take effect?

Pricing changes apply July 1, 2026, and packaging changes begin rolling out in June 2026. Existing customers keep current pricing until their renewal, which makes timing a lever.

What is being added to E5?

Capabilities including Security Copilot, Intune Endpoint Privilege Management, Enterprise Application Management, and Cloud PKI, with Defender for Office 365 Plan 1 and further Intune features following by August 2026.

Does the added value justify the increase?

Only where it does not overlap tools you already buy. If you already pay for Security Copilot or third party privilege management, the new E5 content duplicates spend, so map overlap before accepting the uplift.

Should we move to E7?

Only for seats that need all four bundled products. E7 saves money against assembling the parts only at full use, so segment seats and price E7 per cohort rather than moving everyone.

Can we avoid the increase by renewing early?

Timing is a genuine lever. Existing customers hold current pricing until renewal, so renewing before your packaging change date can preserve current pricing where the new content does not help.

Will Microsoft warn us before the change?

Yes. Microsoft provides at least 30 days notice in the Message Center before packaging changes become available in your tenant, which gives you a planning window.

What is the most expensive response?

Absorbing the uplift without analysis. It pays for overlap and forfeits the timing and segmentation levers, and the cost compounds across the term.

White Paper · Microsoft

The Microsoft 365 2026 price change, answered.

A Gartner style response plan for the 2026 Microsoft 365 price and packaging change: overlap analysis, the E7 math, renewal timing levers, and five recommendations.

Format PDF + HTML

Read Time 20 Minutes

Last Updated June 9, 2026

What you will take away

Microsoft 365 E5 list rises to about 60 dollars per user per month on July 1, 2026, paired with capabilities absorbed into E5.
The absorbed tools overlap with what many enterprises already buy separately, so the added value is partly illusory.
Existing customers keep current pricing until renewal, which turns renewal timing into a measurable lever.
The E7 Frontier Suite bundles E5, Copilot, Agent 365, and the Entra Suite at about 99 dollars, but only saves money at full use.
Renewal timing alone moved the effective increase by 5 to 15 percent across the engagements behind this paper.

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The Microsoft 365 2026 price change, answered.

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