Microsoft Announces Significant Price Hikes for Office 365 Commercial Subscriptions
Microsoft has unveiled plans to increase pricing for its Office 365 commercial subscriptions, effective July 1, 2026. The adjustments will impact business and government clients across multiple tiers, with front-line worker plans facing the steepest rise at 33%. Small and medium-sized businesses will see double-digit percentage increases, while enterprise customers encounter more modest hikes.
The company last adjusted commercial pricing in 2022, justifying previous increases with the addition of over 1,100 new features across its productivity platform. This latest MOVE continues Microsoft's strategy of gradually shifting its revenue base toward recurring cloud subscriptions while maintaining its dominant position in enterprise productivity software.