Extended timeline allows administrators to transition automated workflows away from legacy authentication methods.
Key Takeaways:
Microsoft has pushed back the retirement of the -Credential parameter in Exchange Online PowerShell to December 2026. The extended timeline provides IT teams with additional breathing room to update scripts and automation workflows before Microsoft permanently removes support for the legacy authentication method.
The -Credential parameter in Exchange Online PowerShell is an option that allows administrators and automation scripts to connect to Exchange Online by providing a username and password stored in a PowerShell credential object. It is commonly used for unattended scripts because it enables authentication without requiring interactive sign-in.
Earlier this year, Microsoft announced plans to retire the -Credential parameter in July 2026. The parameter relies on the legacy Resource Owner Password Credentials (ROPC) authentication flow, which is incompatible with modern security features such as multi-factor authentication (MFA) and Conditional Access. Microsoft says this retirement is part of its broader effort to improve cloud security and encourage organizations to adopt more secure, modern authentication methods.
In response to customer feedback, Microsoft has delayed the retirement of the -Credential parameter until December 2026. At that point, the parameter will be removed from the Connect-ExchangeOnline and Connect-IppsSession cmdlets in the Exchange Online PowerShell module.
The -Credential parameter will continue to work in existing versions of the Exchange Online PowerShell module, but it will no longer be available in future releases. Consequently, Exchange Online admins and organizations that rely on automated scripts, scheduled tasks, or integrations using this authentication method will need to update their workflows.
“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 Exchange team explained.
Microsoft recommends that organizations begin reviewing any Exchange Online PowerShell scripts or automated processes that still rely on the -Credential parameter and plan a migration ahead of its retirement deadline. The company advises that early testing and updating of scripts can help prevent unexpected disruptions when newer module versions are deployed.
The replacement method depends on how Exchange Online is being accessed. Administrators who connect interactively should use modern authentication with MFA, and unattended automation running outside Azure should move to app-only authentication. For workloads hosted in Azure, Microsoft recommends managed identities because they remove the need to store usernames, passwords, or other sensitive information.