A Microsoft 365 outage disrupted access to several widely used enterprise services, including Microsoft Teams, SharePoint Online, OneDrive, Copilot Chat, Microsoft Purview, and Power BI. The incident primarily affected customers whose Microsoft 365 traffic was routed through the North America region.
Microsoft tracked the outage under incident ID MO1437424 and said the disruption began at approximately July 23, 2026, at 8:14 PM IST. The company later marked the issue as resolved, with service restoration reported at 11:56 PM IST.
The incident affected a broad portion of the Microsoft 365 suite, creating potential productivity, collaboration, automation, analytics, and compliance challenges for organizations dependent on Microsoft’s cloud platform.
Microsoft 365 Services Affected
According to Microsoft’s service-health notification, the outage affected the following services:
- Microsoft OneDrive
- SharePoint Online
- Microsoft Teams
- Copilot Chat
- Power Automate
- Microsoft Loop
- Microsoft Purview
- Microsoft Fabric and Power BI
- Power Apps
- Copilot Studio
Users may have experienced problems accessing services, loading web applications, retrieving files, collaborating in Teams, running workflows, or using Microsoft’s AI-powered Copilot features.
Microsoft did not specify the exact error messages users encountered, but stated that people accessing Microsoft 365 services through the North American network region were affected.
Microsoft also posted on its official Microsoft 365 Status account on X that it was investigating reports of issues and directed administrators to review incident MO1437424 in the Microsoft 365 admin center.
Network Configuration Change Identified
Microsoft’s investigation identified a recent network configuration change as a possible cause of the service disruption. At 11:22 PM IST, the company said it had begun reverting that change while continuing efforts to reroute traffic across alternative network paths.
“Microsoft 365 services” rely on complex, globally distributed infrastructure. A problematic networking update can prevent users from reaching multiple cloud applications at once, even when the individual applications and customer tenants remain operational.
Before the configuration rollback, Microsoft said it had identified alternate network paths and was validating the best steps to improve availability. The company subsequently expanded traffic-rerouting efforts across its service infrastructure and observed “increasing relief” in internal telemetry.
At 12:06 AM IST on July 24, Microsoft confirmed that its network configuration reversion had completed. The company said telemetry showed services had recovered following the rollback.
Microsoft continued monitoring the environment and contacted a sample of previously affected users to validate that normal service had returned. The incident was ultimately listed as “Service restored.”
The outage highlights the business impact of cloud networking issues, particularly when a common infrastructure layer supports collaboration, document storage, business automation, AI assistants, analytics, and compliance operations.
Organizations that experienced the outage should review Microsoft 365 admin center health alerts and document any operational impact. Administrators should also check whether delayed workflows, file synchronization, Teams meetings, Power BI dashboards, or Purview compliance activities require follow-up.
Microsoft has not yet published a detailed root-cause analysis or post-incident report. Further technical details may be released through the Microsoft 365 admin center under incident MO1437424.
