Microsoft has once again implemented its semi-annual currency correction, and that means good news for organizations paying in euros. As of February 1, 2026, prices for all Commercial Cloud services will be reduced as a result of a new FX alignment between the euro and the US dollar.
This price reduction stems from Microsoft's global strategy to keep cloud prices consistent across regions. In this blog, you'll learn what exactly has been adjusted, why Microsoft does this, and – more importantly – what it means for your existing licenses and upcoming renewals.
Why is Microsoft adjusting prices?
Microsoft evaluates exchange rates twice a year to ensure cloud prices worldwide remain aligned with the USD reference. When local currencies like the euro change significantly against the dollar, Microsoft corrects this through a price adjustment in the local market.
This method contributes to a fair, predictable, and transparent pricing structure for customers worldwide. The December 2025 announcement confirms that EUR prices will drop by 7.4% as of February 1, 2026. This is one of the largest downward corrections in recent years.
Specific price changes for the eurozone
Microsoft has implemented a price reduction for the following currencies:
- EUR –7.4%
- CHF –9.5%
- DKK –7.4%
- NOK –7.2%
- SEK –13.5%
This adjustment applies to all Commercial Cloud services, including Microsoft 365, Dynamics 365, and CSP-based Azure services that are not already USD-aligned. On-premises software prices remain completely unchanged.
What does this mean for existing customers?
The price adjustment sounds attractive, but it's important to understand when you as a customer will actually benefit.
1. Current contracts remain at the old price
If you have an annual contract that was signed before February 1, 2026, the old price will remain fully in effect until the end of the term. Microsoft never adjusts prices mid-term within an active subscription.
2. New prices only apply at renewal or new purchase
Will you benefit from the lower EUR prices? That depends entirely on your renewal date:
- Renewal before February 1, 2026 → old, higher price remains in effect for one year
- Renewal on or after February 1, 2026 → new, lower price (-7.4%) active for at least 12 months
3. Monthly contracts see the reduction immediately
If you use monthly licenses, the lower price will be applied at your next monthly renewal.
Why this price adjustment is strategically relevant
The currency correction comes at a busy time. Microsoft has also announced that as of July 1, 2026, Microsoft 365 suites will be repackaged and expanded with new security and AI features, resulting in structural price increases.
This creates a unique six-month window where organizations benefit from:
- Lower EUR prices (from February)
- No price increase yet due to suite restructuring (until July)
For organizations that plan smartly, this can yield financial benefits.
What should you do now?
- Check your renewal dates – Companies with renewals before February 2026 can potentially save a lot by adjusting their license structure.
- Consider splitting contracts – By renewing certain licenses with shorter terms toward February, your organization can still benefit.
- Prevent over-licensing – Due to the expected price increase in July 2026, every unused account becomes more expensive. Now is the time to clean up.
- Plan a license optimization – Especially in the M365 landscape, redundant suites, old E3/E5 combinations, and unnecessary add-ons can add up significantly.
Conclusion
Microsoft's currency-based price reduction as of February 1, 2026 is positive news for every organization purchasing Microsoft cloud products in euros. With a 7.4% decrease in the eurozone and a strategic period until July 2026, this is the moment to review your license strategy and optimally benefit from the new pricing structure.
Want to know what this specifically means for your environment? Contact Universal Cloud – we're happy to help you calculate the impact and determine the best renewal strategy.
