On December 4, 2025, Microsoft announced a global price update for select Microsoft 365 commercial suites, effective July 1, 2026. The update applies to Enterprise, Business, Frontline, and Government commercial equivalents. Standalone Microsoft Teams and standalone Copilot SKUs are excluded from this round of changes. This post is a plain-language summary of what Microsoft published.
What changes
Microsoft is raising the list price of the affected commercial suite SKUs and tying the update to expanded value rather than a flat catalog change. Specifically, the new bundles include additional Copilot AI features, stronger built-in security capabilities, and broader Intune endpoint-management entitlements. Microsoft has also confirmed that Security Copilot is being included within Microsoft 365 E5, which is the most material packaging change in this round for security-driven organizations.
What is unchanged
Existing customers remain on their current pricing until their next renewal — the new list price applies on renewal, not retroactively. Standalone Teams and standalone Copilot SKUs continue at their current prices and are not affected by this update. Microsoft has stated that the goal of announcing the change months ahead of the effective date is to give customers time to plan around it.
Why this is in the news
Pricing on commercial suites moves rarely — the previous global update was several years prior — so a confirmed list-price change is a planning signal that runs through every IT and finance organization that runs on Microsoft 365. The fact that Security Copilot is being moved into the E5 bundle is also a meaningful product news item independent of price: it consolidates a separate AI-powered security product into the suite that most enterprise security organizations are already on.
How Lorexus engages
We track Microsoft commercial product changes so our clients are not learning about them at renewal. When a price or packaging change lands, our practice surfaces what it means for your specific SKU mix and which capabilities in the new bundle are worth using and which are not.