diff --git a/CHANGELOG.md b/CHANGELOG.md
index 50114afa..d134f7c2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,28 @@
+## [Talos System Extensions 1.2.7](https://github.com/siderolabs/extensions/releases/tag/v1.2.7) (2022-11-22)
+
+Welcome to the v1.2.7 release of Talos System Extensions!
+
+See [Talos Linux documentation](https://www.talos.dev/v1.2/talos-guides/configuration/system-extensions/) for information on using system extensions.
+
+Please try out the release binaries and report any issues at
+https://github.com/siderolabs/extensions/issues.
+
+### Contributors
+
+
+### Changes
+<details><summary>0 commit</summary>
+<p>
+
+</p>
+</details>
+
+### Dependency Changes
+
+This release has no dependency changes
+
+Previous release can be found at [v1.2.6](https://github.com/siderolabs/extensions/releases/tag/v1.2.6)
+
 ## [Talos System Extensions 1.2.6](https://github.com/siderolabs/extensions/releases/tag/v1.2.6) (2022-10-26)
 
 Welcome to the v1.2.6 release of Talos System Extensions!
diff --git a/Pkgfile b/Pkgfile
index e27fd043..c1afebd4 100644
--- a/Pkgfile
+++ b/Pkgfile
@@ -4,7 +4,7 @@ format: v1alpha2
 
 vars:
   PKGS_PREFIX: ghcr.io/siderolabs
-  PKGS_VERSION: v1.2.0-19-gf3dfac7
+  PKGS_VERSION: v1.2.0-20-g23c0dfd
   LINUX_FIRMWARE_VERSION: "20220411" # update this when updating PKGS_VERSION above
 
 labels:
diff --git a/hack/release.toml b/hack/release.toml
index 2d6a0d35..d9d6c700 100644
--- a/hack/release.toml
+++ b/hack/release.toml
@@ -6,7 +6,7 @@ github_repo = "siderolabs/extensions"
 match_deps = "^github.com/((talos-systems|siderolabs)/[a-zA-Z0-9-]+)$"
 
 # previous release
-previous = "v1.2.5"
+previous = "v1.2.6"
 
 pre_release = false