diff --git a/cli/azd/pkg/azdext/version.go b/cli/azd/pkg/azdext/version.go
index 4f07bcd84c2..b9533da40e9 100644
--- a/cli/azd/pkg/azdext/version.go
+++ b/cli/azd/pkg/azdext/version.go
@@ -6,4 +6,4 @@ package azdext
 // Version is the semantic version of the azdext SDK package.
 // This value mirrors the CLI version in cli/version.txt and is
 // automatically updated by eng/scripts/Update-CliVersion.ps1.
-const Version = "1.25.2"
+const Version = "1.26.0-beta.1"
diff --git a/cli/version.txt b/cli/version.txt
index 61b813d5e63..b159a891450 100644
--- a/cli/version.txt
+++ b/cli/version.txt
@@ -1 +1 @@
-1.25.2
+1.26.0-beta.1