Data from outage-tracking website Downdetector showed a sharp decline in user complaints as the issue was brought under control. As of 1:05 a.m. Eastern Time, about 113 incidents were reported, down significantly from more than 15,890 reports recorded at the peak of the disruption a day earlier.
The outage affected several core Microsoft 365 services, including Outlook, Microsoft Defender and Microsoft Purview, disrupting email access, security tools and compliance services for users and businesses.
In an update posted on its official status page on X, Microsoft 365 said the affected infrastructure had been restored to a healthy state and that the impact of the incident had been fully resolved.
Earlier, the company disclosed that it was rerouting traffic to alternative infrastructure as part of recovery efforts while engineers investigated the root cause of the problem. Microsoft said it had identified an issue within a portion of its North America infrastructure that was not processing traffic as expected, leading to service degradation across multiple platforms.
The rapid drop in outage reports suggests that services have largely stabilised, although Microsoft did not immediately provide further details on the underlying cause of the failure.
The incident adds to growing concerns among enterprises about the reliability of large-scale cloud services, as organisations continue to rely heavily on platforms like Microsoft 365 for daily operations, communication and cybersecurity functions.