Below are all of the latest feature updates coming to Microsoft 365.
Automated Security Assessments and Policy Management
CloudCapsule is a tool I built purpose built for MSPs looking to scale their security practice on Microsoft 365. Scans of tenants take on average 60 seconds where we collect over 200 data points. We now provide remediation and policy management capabilities, allowing you to deploy fixes right from within our portal.
Microsoft Teams
1. Introducing video recap for Microsoft Teams meetings
How this will affect your organization
We are introducing video-based meeting recaps in Microsoft Teams to help users quickly catch up on meetings they missed or revisit key moments. Video recap creates narrated video highlights from recorded meetings, combining key takeaways with short video clips that showcase important discussion points.
***REQUIRES COPILOT LICENSE***
When will this happen:
late April 2026 and expect to complete by early May 2026.
2. Identify external bots joining your Teams meetings
How this will affect your organization
To help organizations protect meeting content and increase visibility into automated participants, Microsoft Teams is introducing a new capability that detects external meeting assistant bots as they attempt to join meetings. This update gives organizers greater awareness and control and provides administrators with clear controls to manage how detected bots are handled in meetings hosted across the organization.
When will this happen:
early June 2026 and expect to complete by mid-June 2026.
3. Manage multiple phone numbers within one Teams account
How this will affect your organization
Teams Phone user multi-line provides greater flexibility for organizations whose users manage multiple business numbers. This capability allows administrators to assign up to 10 telephone numbers to a single Teams Phone user, all within one Teams account. Users can make and receive calls from multiple numbers across Teams desktop, Teams mobile, and Teams devices without switching accounts or hardware.
When will this happen:
late April 2026 and expect to complete by mid-May 2026.
4. Catch up in Teams mobile
How this will affect your organization
This new, consolidated view helps users triage conversations that need their attention across chats, meeting chats, and followed channels or threads.
When will this happen:
early May 2026; expected completion in early May 2026.
Microsoft Outlook
1. Outlook Mobile: Follow a meeting option
How this will affect your organization
This feature helps users stay informed when they cannot attend by prompting organizers to record the meeting and by ensuring followers receive key updates and follow‑up items.
When will this happen:
mid-April 2026 (previously mid‑March) and is expected to complete by end of April 2026 (previously mid‑April).
Microsoft 365 Apps
1. View and edit Markdown files in OneDrive and SharePoint
How this will affect your organization
OneDrive and SharePoint now support viewing and editing Markdown (.md) files directly in the browser. No downloads or third-party tools are needed.
When will this happen:
mid-April 2026 and is expected to complete by late May 2026.
2. Targeted file and folder restores in Microsoft 365 Backup
How this will affect your organization
Microsoft is introducing granular restore capabilities in Microsoft 365 Backup, allowing administrators to browse, search, and restore individual files or folders from restore points for protected SharePoint sites and OneDrive accounts
When will this happen:
late April 2026 and expect to complete by early May 2026.
3. Retirement of SharePoint One-Time Passcode (SPO OTP) and transition to Microsoft Entra B2B
How this will affect your organization
Retiring SharePoint One‑Time Passcode (SPO OTP) authentication in OneDrive and SharePoint starting July 2026. Beginning in May 2026, new external sharing invitations and authentication will start using Microsoft Entra B2B instead of SPO OTP.
- May 2026: Invitation and authentication for new external sharing begins transitioning to Microsoft Entra B2B. Users who previously authenticated via SPO OTP will continue to have access to specific people links even without a B2B guest account yet.
- July 2026: Retirement of SPO OTP authentication begins. External users without a guest account get access denied on previously shared specific people links. To restore access, a guest account must be created in Entra B2B, or an allowed user must share/re-share at least one file/folder/site.
When will this happen:
Retirement is expected to complete by August 31, 2026.
4. Set expiration policies for “People in your organization” sharing links in SharePoint and OneDrive
How this will affect your organization
To help organizations reduce the risk of unintended long-term access to internal content, Microsoft is introducing expiration policies for “People in your organization” sharing links in SharePoint and OneDrive. This update enables administrators to automatically expire these sharing links after a defined period, supporting stronger data governance and minimizing exposure from stale links.
When will this happen:
mid-March 2026 and expect to complete by late June 2026.
5. Set a custom name for the OneDrive sync folder
How this will affect your organization
To help reduce Windows file path length issues and improve the local file system experience, IT admins can now set a custom name for the local OneDrive sync root folder on users’ Windows devices using the policy Set a custom name for the OneDrive sync folder with the String ID CustomSyncRootFolderName. Today, the default folder name (“OneDrive – (organization name)”) can contribute to path length constraints in deeply nested folder structures.
When will this happen:
mid-March 2026 and complete on March 18, 2026 (previously early April).
6. Improved OneDrive sync experience for macOS users
How this will affect your organization
Refreshing the OneDrive Activity Center on macOS. This redesign brings a cleaner, more intuitive way to check sync status, manage files, and resolve issues, right from your desktop.
When will this happen:
early April 2026 and expect to complete by late May 2026.
Microsoft Edge
1. Cross-tenant support using Intune Mobile Application Management (MAM)
How this will affect your organization
This update allows organizations to apply Intune App Protection Policies to Edge work profiles even when the device is managed by another tenant. This capability helps protect corporate data in cross-tenant scenarios such as contractors, partners, or mergers, without requiring additional device enrollment or disrupting the end-user experience.
Learn More: https://learn.microsoft.com/en-us/deployedge/microsoft-edge-cross-tenant-support-using-intune-mam
When will this happen:
early April 2026 and expect to complete by mid-April 2026.
Microsoft Intune
1. Prepare devices for successful updates with Windows Autopatch update readiness
How this will affect your organization
Designed to help IT teams proactively prepare devices for upcoming Windows updates, update readiness surfaces risks and blockers before updates are deployed, reducing failures, downtime, and reactive troubleshooting.
Learn More:
When will this happen:
Capabilities light up within the Windows Autopatch blade in the Microsoft Intune admin portal starting March 2, 2026
Microsoft Entra
1. Passkeys in Microsoft registration campaigns
How this will affect your organization
Microsoft Registration Campaigns will support Passkeys (FIDO2) as an additional authentication method, enabling phishing-resistant credentials. Eligible Microsoft 365 tenants can opt users into Passkey registration nudges during sign-in.
Who is affected
- Microsoft 365 tenants using Microsoft Registration Campaigns
- Tenants configured in either Microsoft‑managed or Enabled states
- Users who are MFA‑capable and eligible for Passkeys (FIDO2)
What will happen
Microsoft‑managed state
Your tenant will be impacted when all of the following conditions are met:
- The Passkeys (FIDO2) authentication method policy is enabled.
- Allow self‑service setup is enabled.
- Target specific AAGUIDs is not selected (no AAGUID restrictions configured).
- The Authentication Methods Registration Campaign state is set to Microsoft‑managed.
When these conditions are met, the following settings will update automatically:
- The targeted authentication method will change from Microsoft Authenticator to Passkeys (FIDO2).
- Days allowed to snooze will change from three days to one day. (This setting will no longer be configurable.)
- Limit number of snoozes will be disabled. (This setting will no longer be configurable.)
- Targeting will expand to all MFA‑capable users. (This setting will no longer be configurable.)
- Default user targeting will change from voice call or text message users to all multifactor authentication (MFA)–capable users.
Affected users will receive Passkey registration nudges at sign‑in after completing MFA.
When will this happen:
early April 2026 and expect to complete in late May 2026.
2. Entra Backup and Recovery
How this will affect your organization
Microsoft Entra Backup and Recovery helps you build identity resilience into daily operations using an always‑on, Microsoft‑managed solution that rapidly restores critical identity objects to a known‑good state. It provides automatic backups, point‑in‑time visibility into configuration changes, and backups are protected by a built‑in safeguard that prevents them from being disabled, deleted, or altered. This helps reduce recovery time and maintain business continuity.
For Public Preview, we are announcing new capabilities that help you recover with confidence: Restoring core directory objects 1 backup a day within the last 5 days, including users, groups, applications, service principals, Conditional Access policies, authentication method policy, authorization policy, and named locations.
Learn more:
When will this happen:
Public Preview
3. Microsoft Entra Tenant Governance
How this will affect your organization
Mergers, acquisitions, and the rise of shadow IT often lead to a fragmented tenant landscape. Microsoft Entra Tenant Governance addresses this challenge by providing a centralized, risk-informed way to discover, govern, and continuously secure all related tenants.
Learn more:
When will this happen:
Public Preview
4. External MFA in Microsoft Entra ID is now Generally Available
How this will affect your organization
Now, with the GA of external multifactor authentication (external MFA)—previously known as external authentication methods—you can integrate trusted third-party MFA providers while continuing to rely on Microsoft Entra ID as your central identity control plane.
When will this happen:
GA, External MFA replaces Custom Controls, which will be deprecated on September 30, 2026
Microsoft Purview
1. Data Lifecycle Management – Hard delete OneDrive and SharePoint files with priority cleanup workflow
How this will affect your organization
Allows administrators to permanently delete (hard delete) specific OneDrive and SharePoint content types, even when retention policies or holds are in place.
When will this happen:
late May 2026 and is expected to complete by mid-June 2026.
2. DSPM’s Data Risk Assessments now support item-level investigation and remediation of SharePoint
How this will affect your organization
New item-level insights such as sensitivity label status and sharing link details make it easier to pinpoint overshared content. Admins can take direct remediation actions on selected items, including resolving findings, notifying owners, applying sensitivity labels, or removing sharing links. (Requires E5 or Purview Suite Add-On)
When will this happen:
early March 2026 and expect to complete by mid-March 2026.
3. Credential scanning in Data Security Posture Agent
How this will affect your organization
We are expanding the Data Security Posture Agent in Microsoft Purview with a new credential scanning capability. This update helps your organization discover exposed credentials and related data security risks across scoped locations. The agent analyzes selected data locations to detect sensitive credential types—including Microsoft Entra user credentials, private keys, and API tokens—and provides risk scores, AI-generated insights, confidence ratings, and credential categories so you can review, confirm, and take action from a single task board view. (Requires Agent Add-On)
When will this happen:
late June 2026 and complete by early July 2026.
4. Data Security Triage Agent Summaries for DLP Alerts in Microsoft Defender XDR
How this will affect your organization
This update helps security analysts triage DLP alerts more efficiently by surfacing AI-generated summaries and categorizations created by the Microsoft Purview Data Security Triage Agent.
When will this happen:
mid-August 2026 and expect to complete by late August 2026.
Microsoft Copilot
1. Copilot Cowork
How this will affect your organization
Cowork makes it easy to delegate work. Describe the outcome you want and Cowork automatically grounds the work in your emails, meetings, messages, files, and data. Powered by Work IQ, Cowork draws on signals across Outlook, Teams, Excel, and the rest of Microsoft 365 so it can act with the same understanding you bring to your job.
Learn More: Copilot Cowork: A new way of getting work done | Microsoft 365 Blog
All Wave 3 Announcements: https://techcommunity.microsoft.com/blog/microsoft365copilotblog/in-case-you-missed-it-frontier-transformation-and-wave-3-of-microsoft-365-copilo/4504765
When will this happen?
Late March
2. Introducing Federated Copilot Connectors
How this will affect your organization
Federated Copilot connectors enable users to securely connect Copilot to popular third‑party sources and retrieve data in real time using the Model Context Protocol (MCP). These connectors do not store or index customer data in Microsoft services; access occurs in real time using the user’s identity, while administrators retain full governance and control through the Microsoft 365 admin center.
Microsoft‑published federated Copilot connectors available at GA include:
- Canva
- HubSpot
- Linear
- Intercom
- Google Calendar
- Google Contacts
- Notion
- S&P Global
- Moody’s
- LSEG
When this will happen
late April 2026 and complete by late May 2026.
3. Copilot Notebooks: New features coming to Frontier Public
How this will affect your organization
Several new Copilot Notebooks features to the Frontier Public environment to help users learn faster, create content more efficiently, and collaborate more easily within their organization.
When will this happen?
early April 2026 through early May 2026.
4. Anthropic Claude Sonnet is now available in Microsoft 365 Copilot
How this will affect your organization
Claude Sonnet is available in Copilot Chat in Frontier, alongside the latest OpenAI models, giving users the flexibility to choose the model best suited for their tasks
When will this happen:
Rolling out gradually; expected completion late March 2026.
Microsoft Admin
1. Introducing Microsoft 365 E7
How this will affect your organization
Built to help customers seize the agentic moment and drive frontier transformation, Microsoft 365 E7 and Microsoft Agent 365 will be generally available as of May 1, 2026.
Learn More: March 2026 announcements – Partner Center announcements | Microsoft Learn
