Microsoft 365 Alert – Service Degradation – Microsoft 365 suite – Users may be unable to share files with external recipients through SharePoint Online and OneDrive – RESOLVED

Announcements Arpan Das

28/07/2026 09:27:00 AM

NHS.net Connect Reference: INC46892210

Microsoft Reference: MO1440526

Issue Status: RESOLVED

Issue Description: Users may be unable to share files with external recipients through SharePoint Online and OneDrive.

More info: Affected users may be unable to send external sharing invitations from SharePoint Online sites and OneDrive locations, despite external sharing being enabled at both the tenant and site levels.

Final Update: 06/08/2026 11:15:00 AM – Microsoft has extended service monitoring has validated that their roll back of the recent change has remediated the impact.

Scope of impact: Some users attempting to share files with external recipients through SharePoint Online and OneDrive may be impacted. This information may be updated as our investigation continues.

Root cause: Organisations that requested we turn off Unlicensed User Access for their organization are encountering this problem after OTP deprecation and unlicensed user check in the external sharing code is now being enforced.

Next steps : Microsoft is further analysing our deprecation processes in our effort to prevent similar problems in the future.