User impact: Users may experience issues when utilizing multiple Microsoft 365 services.

More info: Impact includes, but may not be limited to, the below services and scenarios. We will update this list as our understanding of the issue progresses.

Microsoft 365 Copilot:
– Users’ Copilot prompts that require Microsoft 365 grounding, such as email content, may fail.

OneDrive for Business and SharePoint Online:
– Users may be unable to load or refresh portions of OneDrive and SharePoint, including account and storage information, search results, Favorites, Followed and Shared With Me content, recent files, lists, and news.
– Some users may also experience delayed or failed file opening, Office policy-label retrieval, OneDrive synchronization, mobile camera upload, and video playback.
– Users may see partial page failures, missing or stale content, repeated retries, and operation timeouts rather than a complete platform outage.

Exchange Online:
– Users may be unable to connect to, or experience degraded functionality, such as failures when attempting to use the search function, within Exchange Online. All connection methods are affected.

Outlook for iOS and Android:
– Delays or failures when sending or receiving email messages via Outlook for iOS and Android.

Microsoft Teams:
– Users may experience issues with calendar functionality and search. Users’ presence may be stale and not update automatically or through manual adjustment. User location adjustment may fail.
– Microsoft Teams Room (MTR) devices and desktop phones display as offline in the Teams admin center.

Microsoft Purview:
– Users may face intermittent authorization failures across solutions in Purview. Purview admins can’t access the portal.
Additionally, in Microsoft Purview Communication Compliance, users may see errors when loading Communication Compliance policies and Data Loss Prevention (DLP) policies. Communication Compliance policy creation and evaluation may be delayed.

Microsoft Defender XDR:
– Users may experience intermittent authorization failures across solutions in Defender.

Microsoft 365 Admin Center:
– Admins may experience issues authenticating into the admin center.

Universal Print:
– Users may be unable to create, upload, or retrieve print jobs.

Current status: We’re continuing to apply the targeted remediation across the remaining affected infrastructure where needed. Service telemetry continues to show positive recovery trends, with availability improving across previously impacted scenarios. We’re actively validating that authentication, connectivity, and search experiences are returning to expected service levels, while maintaining enhanced monitoring to ensure improvements are sustained and any residual impact is addressed.

Scope of impact: Users attempting to perform any of the outlined impact scenarios may be affected by this event.

Start time: Monday, August 31, 2026, at 3:08 PM UTC

Root cause: An issue within a core authentication configuration used by multiple Microsoft 365 services is resulting in impact.

Next update by: Tuesday, September 1, 2026, at 4:00 PM UTC