check before: 2026-07-01
Product:
Entra, Exchange, Microsoft 365 Apps
Platform:
Online, World tenant
Status:
Change type:
Admin impact, Retirement
Links:
Details:
Summary:
Microsoft will retire the -Credential parameter in Exchange Online PowerShell cmdlets starting July 2026, requiring organizations to migrate scripts to modern authentication methods with MFA or app-only/managed identity authentication to avoid disruptions. This enhances security by eliminating legacy authentication.
Details:
[Introduction]
Microsoft is retiring the -Credential parameter used when connecting to Exchange Online PowerShell. Starting with module versions released in July 2026 and later, the -Credential parameter will be removed from both Connect-ExchangeOnline and Connect-IppsSession cmdlets. Organizations using this parameter in automation scripts must migrate to a supported authentication method before that date. This change improves security by moving away from legacy authentication methods that do not support modern protections such as multifactor authentication (MFA).
[When this will happen:]
The -Credential parameter will be removed from Connect-ExchangeOnline and Connect-IppsSession cmdlets in Exchange Online PowerShell module versions released beginning July 2026.
A separate server-side retirement of the underlying authentication flow is planned for a later date and will be communicated in advance.
Change Category:
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Scope:
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Release Phase:
Created:
2026-03-17
updated:
2026-03-17
Task Type
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Docu to Check
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MS How does it affect me
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summary for non-techies**
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Direct effects for Operations**
Script Breakage
Automation scripts using the -Credential parameter will fail after the parameter is removed, leading to potential disruptions in scheduled tasks and workflows.
- roles: Microsoft 365 Administrators, IT Support Staff
- references: https://learn.microsoft.com/powershell/exchange/connect-to-exchange-online-powershell?view=exchange-ps, https://techcommunity.microsoft.com/blog/exchange/deprecation-of-the--credential-parameter-in-exchange-online-powershell/4494584
Increased Security Risks
Organizations that do not migrate to modern authentication may face security vulnerabilities due to reliance on legacy authentication methods.
- roles: Security Administrators, Compliance Officers
- references: https://learn.microsoft.com/powershell/exchange/app-only-auth-powershell-v2?view=exchange-ps" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/powershell/exchange/app-only-auth-powershell-v2?view=exchange-ps, https://learn.microsoft.com/powershell/exchange/connect-exo-powershell-managed-identity?view=exchange-ps
" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/powershell/exchange/connect-exo-powershell-managed-identity?view=exchange-ps
User Experience Disruption
Users relying on automated scripts for daily tasks may experience delays or failures in operations, impacting productivity.
- roles: End Users, Business Analysts
- references: https://learn.microsoft.com/powershell/module/exchangepowershell/connect-exchangeonline?view=exchange-ps, https://learn.microsoft.com/powershell/module/exchangepowershell/connect-ippssession?view=exchange-ps
Compliance Issues
Failure to comply with new authentication requirements may lead to non-compliance with security policies and regulations.
- roles: Compliance Officers, IT Auditors
- references: https://learn.microsoft.com/powershell/exchange/connect-to-exchange-online-powershell?view=exchange-ps, https://techcommunity.microsoft.com/blog/exchange/deprecation-of-the--credential-parameter-in-exchange-online-powershell/4494584
Increased Support Requests
The transition away from the -Credential parameter may lead to an increase in support requests from users facing issues with script failures.
- roles: Help Desk Staff, IT Support Staff
- references: https://learn.microsoft.com/powershell/exchange/connect-exo-powershell-managed-identity?view=exchange-ps, https://learn.microsoft.com/powershell/exchange/app-only-auth-powershell-v2?view=exchange-ps" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/powershell/exchange/app-only-auth-powershell-v2?view=exchange-ps
Configutation Options**
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Potentional Risks**
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IT Security**
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explanation for non-techies**
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