Microsoft FY26: New priorities, incentives and key changes for CSP partners

As every year, with the start of July comes the beginning of a new fiscal year for Microsoft — FY26.

What does the new fiscal year mean?

It brings updates to partner programs (modification of designations), major changes in incentive guides, and updates regarding eligibility and funding programs.

As part of the partner program redesign announced at the MCAPS for Partners event, Microsoft has simplified its strategic priorities into three main areas: AI Business Solutions, Cloud & AI Platforms, and Security. Each represents a unique opportunity for partners, with specific tools, specializations, incentives, and clear playbooks to better align with market demand and accelerate customers’ digital transformation. Here’s what each one means:

Priorities Solution Areas

AI Business Solutions: AI-powered enterprise solutions

With the exponential growth of generative AI and the arrival of Copilot and AI Agents, Microsoft positions this area as a pillar of business transformation.

What does it mean for partners?

Support customers in adopting Copilot for Microsoft 365, Copilot Studio, and custom AI agent scenarios.
Provide services for adoption, security, and extension of these technologies in business environments.
Earn the new Copilot specialization, validating capabilities in AI advisory, change management, agent development, and data security.
Access marketing campaigns, CSP incentives, and initiatives like Copilot Jumpstart.

Cloud & AI Platform: Modernization and innovation with Azure

This area focuses on accelerating cloud migration, unifying data platforms, and enabling large-scale AI solutions — all built on Azure infrastructure.

What does it mean for partners?

Participate in migration and modernization projects for Windows Server, SQL, SAP, Oracle, and Linux.
Develop and implement AI apps using Azure AI Foundry, Databricks, and Kubernetes.
Guide customers toward a unified data platform with Microsoft Fabric and Purview.
Drive added value: for every $1 generated by Microsoft, partners can earn up to $10.93 USD in associated services.

Security: Modern, automated security across the digital environment

With a comprehensive, AI-powered platform approach, Microsoft puts cybersecurity at the heart of its strategy. A key highlight here is Microsoft Security Copilot, a revolutionary tool for autonomous security operations.

What does it mean for partners?

Deliver solutions across three pillars: Modern SecOps, Data Security, and Cloud & AI Protection.
Integrate tools such as Microsoft Sentinel, Defender, Entra, and Purview for complete security coverage.
Leverage Security Copilot, which can reduce average incident resolution time by up to 30%.
Capture business opportunities: Microsoft estimates up to $45.30 USD per user/month in enterprise customer value from its security solutions.

Less is more

With this new simplification, Microsoft is betting on a more focused model centered on what truly matters: AI, cloud, and security. For partners, this represents a huge opportunity for specialization and sales acceleration.

👉 Download the official playbooks here

So… what about FY26 incentives?

1. Increased investment in enterprise customer funds

Microsoft will increase Enterprise Customer Investment Funds by around 20%, supporting partners in delivering AI solutions, migrations, and Copilot deployments — a clear sign of commitment to growing its partner ecosystem.

2. Higher incentives for AI solutions

AI-related incentives will rise by 50%, encouraging adoption of Copilot across devices and roles, and driving execution of Microsoft 365 and Dynamics 365 deployments.

3. More incentives for Microsoft 365 and Azure

Microsoft 365 incentives will grow by double digits, while Azure outcome-based incentives will grow 70% year-over-year. These aim to reward workload expansion, user growth, and deeper solution adoption.

4. Strengthened CSP partner incentives

CSP partners will see an approximate 20% year-over-year increase in incentives, rewarding efforts to acquire new customers, sell new workloads, and expand existing relationships.

5. Extra incentives for security solutions

Security incentives will rise by 15%, empowering partners to lead customer protection engagements and uncover new business opportunities.

6. Earlier incentive start date

To align investment with FY26 growth ambitions, Microsoft will move the start date for incentives to July 1, allowing partners to execute faster, seize early opportunities, and generate impact from day one.

👉 Download the updated incentive guides here

CSP Program Updates (July 2025)

Microsoft is reinforcing its commitment to CSP partners, especially in the SMB market, through key updates:

New incentives aligned to priorities like Copilot, security, and Microsoft 365 adoption.
Three-year subscriptions available from June 2025 for M365 E3/E5 and other suites, with promotional discounts.
Partner Center enhancements: shared lead management, NPSA performance metrics, and process automation.
New CSP requirements: from October 2025, certifications, revenue thresholds, and technical best practices will be mandatory.

In conclusion…

With the launch of fiscal year 2026, Microsoft is redefining its strategic focus for partners, concentrating on three key pillars: AI-driven business solutions, cloud modernization, and advanced security. These changes not only simplify the ecosystem but also open up new opportunities for partners to drive customer digital transformation — by specializing in high-demand, high-impact areas.

Moreover, the significant increase in incentives — ranging from 15% to 70% across different segments — shows Microsoft’s strong commitment to fostering joint growth and innovation. The decision to advance the incentive start date to July 1 reflects a clear intent to enable faster execution and earlier market impact.

If you want support in accelerating your company’s digital transformation, contact us.

Know More