Microsoft delays Exchange PowerShell credential shutdown

Microsoft has delayed the retirement of the -Credential parameter in Exchange Online PowerShell until December 2026, giving administrators additional time to identify and update scripts that still depend on stored usernames and passwords.

The parameter is used with connections to Exchange Online PowerShell and is now strongly discouraged because more secure authentication methods are available. Microsoft had originally planned to remove it in July 2026 as part of its move away from password-based authentication.

The change affects the Connect-ExchangeOnline and Connect-IppsSession cmdlets. Once removed from the Exchange Online PowerShell module, scripts that still use -Credential will fail when organizations update to an affected module version, potentially disrupting automation workflows.

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“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 December 2026.”

The retirement will not take effect until an affected module update is installed. Microsoft said the server-side retirement of the underlying authentication flow is planned “for a later date.” When that happens, the parameter will stop working even with older module versions.

Microsoft attributed the delay to customer feedback, although the revised timeline still leaves administrators with a firm deadline. The company urged customers to migrate as soon as possible rather than wait for December 2026.

“While our published timeline extends to the start of December 2026, we strongly recommend that all customers transition away from the -Credential parameter as soon as possible and not wait until the deadline.”