Monday Morning Impact – February 16
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.
D&H Acquires Fulfillment.com, Expanding its Third Party Logistics Capabilities
D&H, a Harrisburg, Pennsylvania-based distributor, has announced the acquisition of Fulfillment.com (FDC), an eCommerce fulfillment house. This move is expected to enhance “Scale,” which is D&H’s third-party logistics (3PL) and supply chain services arm, by adding Fulfillment.com’s advanced technology and international reach.
Scale develops end-to-end omni-channel logistics and fulfillment services for B2B and B2C partners.
“Our vision for Scale has always been to deliver high-performance, technology-driven logistics for the brands shaping the future of commerce,” said Shaun Sinden, Vice President of Scale. “By integrating Fulfillment.com’s expertise and unified platform with our operational investments and employee-owned culture, we’re building a logistics ecosystem in which our partners can accelerate, innovate, and compete globally.”
As a newly acquired business within the D&H SCALE organization, Fulfillment.com will maintain its management autonomy, further supported by additional resources provided by D&H.
“This is more than an acquisition. It’s a strategic evolution for D&H and Scale,” added Mike Abrams, Vice President of Operations and Logistics at D&H. “Our goal is not just integration, but elevation.”
“Our clients rely on Fulfillment.com for reliability and agility,” said Bob Bilbrough, General Manager at Fulfillment.com. “With the expanded capabilities of Scale, we are positioned to deliver even more to our clients, including reduced shipping windows, advanced logistics technology, and an international presence that turns growth opportunities into real results for every customer.”
Channel Impact®
The acquisition of Fulfillment.com is presented as a significant milestone, positioning Scale to help partners enter new markets, optimize their fulfillment operations, and achieve accelerated growth on a worldwide scale.
ServiceNow Updates Global Partner Program to Accelerate AI Agent Innovation
ServiceNow has rolled out enhancements to its global partner program aimed at accelerating AI agent innovation. The updates include a reimagined Build Program designed to open the ServiceNow partner ecosystem to more innovators, and strengthen the ServiceNow Store as a global marketplace for partner-built AI agents.
Elements include new MDF funding opportunities and 100% reimbursement for select activities; Strategic Investment Funds that provide targeted funding to accelerate high-impact customer opportunities and unlock faster outcomes; sell-through, deployment, and specialization incentives; and rewards that recognize partners for driving customer value and deepening technical expertise across the ServiceNow AI Platform. Each program element is aligned with the updated ServiceNow partner tiers.
The company also introduced a unified investment portfolio and simplified pricing model designed to fuel partner-led growth.
These updates are expected to equip ServiceNow partners with the programs, investments, and platform capabilities they need to lead the next wave of AI-powered transformation.
To further simplify partner engagement and remove friction as the partner ecosystem grows, ServiceNow is also introducing a streamlined fee structure. Beginning immediately, all global partners will move to a streamlined single annual membership fee intended to create a simpler, more equitable structure that allows partners to focus on building, innovating, and going to market, rather than navigating complex program fees.
“ServiceNow is building a vibrant partner ecosystem for the AI-native future,” said Michael Park, senior vice president, global partnerships and channels. “By simplifying how partners build on the ServiceNow AI Platform and expanding our commitment to partner co-innovation, we’re making it easier than ever for partners to create differentiated AI-powered solutions.”
ServiceNow claims more than 2,700 partners globally.
Channel Impact®
The program is designed to enable a broader set of ISVs, developers, and technology partners to build, test, certify, and distribute solutions on the ServiceNow AI Platform.
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