Growth margin is live

Earn incremental margin on qualifying growth across strategic workloads starting October 1, 2026.

Impacted audience

CSP direct bill partners and distributors

As announced in July, growth margin goes live on October 1, 2026, creating a new way for eligible Cloud Solution Provider (CSP) direct bill partners and distributors to earn extra margin as they grow customer adoption of strategic Microsoft solutions.

Partners can now earn incremental margin on top of base margin when they drive qualifying growth across Microsoft 365 Copilot, Microsoft 365 E5, Microsoft 365 E7, Microsoft Defender Suite, Microsoft Purview Suite, and Windows 365 Enterprise.

Growth margin rewards the customer expansion motions that help build recurring revenue and stronger customer relationships: landing new workloads, increasing adoption, and expanding customers into strategic solution portfolios.

Because eligibility is evaluated at the customer tenant level across Microsoft channels and partners and is locked when the transaction finishes, validating eligibility before every quote remains an important step. Use the Partner Center experience or Partner Center API to confirm eligibility and maximize your opportunity to earn growth margin on qualifying transactions.

Starting October 1, base margin also adjusts on select Microsoft 365 and Office 365 products. Distributors and direct bill partners can review product-level details and rates in the gated growth margin guide.

Customer pricing remains unchanged; growth margin impacts the economics between Microsoft and your business, giving you extra flexibility in how you invest, reward growth, and build customer value.

Next steps

• Validate growth margin eligibility before you quote in Partner Center or through the Partner Center API.
• Review the growth margin partner resource collection.
• Read the growth margin FAQ.

Questions

For questions about growth margin eligibility or the Partner Center API, open a support request in Partner Center.

Eligible partners still completing API changes can open an Advisory Case with Microsoft Partner Technical Consulting.