MC1248389: Retirement of -Credential parameter when connecting to Exchange Online PowerShell

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 le...

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Major Update: This post contains a significant change that may impact your organisation.

[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.

[How this affects your organization:]

Who is affected:

  • Microsoft 365 administrators using Exchange Online or Security & Compliance PowerShell
  • Organizations with automation scripts that use the -Credential parameter

What will happen:

  • If your organization uses the -Credential parameter in PowerShell scripts or automation workflows connecting to Exchange Online or Security & Compliance PowerShell, those scripts will break when you update to an Exchange Online PowerShell module version released beginning July 2026.
  • No impact if your organization does not use the -Credential parameter

What you can do to prepare:

Additional information

This change is currently client-side only and will not take effect automatically. Your existing scripts will continue to work if you continue using an Exchange Online PowerShell module version released before July 2026. The -Credential parameter will only be removed when you upgrade to a module version released in July 2026 and later.

A separate server-side retirement of the Credential parameter authentication flow is planned for a later date. When that occurs, the -Credential parameter will stop functioning even on older module versions. Microsoft will communicate that timeline separately and provide advance notice before any service-side changes take effect.

We strongly recommend migrating proactively rather than waiting, to avoid disruption when either change occurs. If you have questions or concerns, contact Microsoft Support or leave a comment on the Exchange Team Blog post.

[Compliance considerations:]

Compliance area Impact
Conditional Access policies Retiring the -Credential parameter removes use of the ROPC authentication flow and enables enforcement of Conditional Access and multifactor authentication for Exchange Online PowerShell connections.