IDC: IT Distribution Revenues Reached a Record $24.3B in Q4 2025

Sales through the IT distribution channel increased 6% year over year to $24.3 billion in Q4 2025, marking the strongest quarter on record for North American distribution, according to research by IDC in collaboration with the Global Technology Distribution Council (GTDC).

The record Q4 performance capped a solid year for distribution, with full-year 2025 revenues rising 6.2%, following flat growth in 2024 and a market contraction in 2023.

Growth in Q4 was broad-based, with all major product categories expanding year over year as enterprise and partner demand stabilized and investment shifted toward software-led and AI-enabled solutions.

Software grew 10.0% YoY to $5.4 billion, reaching a record 22.3% share of total distribution revenues. Personal Computing increased 9.6% YoY, with AI PCs accounting for 58.8% of category sales. Services returned to growth, rising 2.2% YoY, reinforcing the stability of recurring, value-added offerings. Software and services continued to deliver the most consistent performance, while hardware categories reflected more pronounced shifts tied to changing enterprise architectures, according to IDC and GTDC.

After several quarters of uneven demand, Network Infrastructure rebounded sharply, growing 17.5% year-over-year in Q4 2025. Quarterly sales exceeded $2.8 billion, driven by enterprise investments in networking equipment capable of supporting AI workloads and modern, high-performance architectures.

The Components & Semiconductors category grew 6.1% YoY, underscoring the continued importance of distribution in supporting compute-intensive deployments.

Graphics products remained a standout, with NVIDIA-related distribution revenues increasing 165.7% YoY, reflecting sustained demand for AI acceleration
IDC Analyst Commentary

“IT spending continues to grow as organizations respond to core imperatives such as AI adoption, security management, and digital transformation,” said Ruth Flynn, Research Vice President, IDC Tracker & Data Products. “Even amid supply-chain and geopolitical uncertainty, distributors are playing a critical role in enabling access to the technologies enterprises need to modernize and scale.”

Channel Impact^®
The results highlight the growing role of distributors as enterprises modernize infrastructure, adopt AI-ready technologies, and rebalance IT spending priorities.