BOSTON, January 27, 2026 — 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 the IDC North America Distribution Tracker (NADT), powered by 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. The results highlight the growing role of distributors as enterprises modernize infrastructure, adopt AI-ready technologies, and rebalance IT spending priorities.
Why IT Distribution Grew in Q4 2025
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.
Network Infrastructure and AI Demand Accelerate Growth
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.
Components and Semiconductors Remain a Key Growth Engine
The Components & Semiconductors category grew 6.1% YoY, underscoring the continued importance of distribution in supporting compute-intensive deployments.
- Memory sales surged 28% YoY, despite ongoing supply constraints
- 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.”
About IDC Trackers
IDC’s North America Weekly Distribution Tracker and North America Monthly Distribution Tracker are built on the exclusive partnership between IDC and the Global Technology Distribution Council (GTDC) and provides the industry’s most comprehensive view of technology distribution data and market trends in the U.S. and Canada. The data in these Trackers is actual sales data collected weekly from sales receipts across the largest distributors in North America for more than 1,000 brands over several years. This data is mapped to IDC’s taxonomy with over 200 categories organized into 13 distinct product groups with detailed product attributes across categories.
IDC Tracker products provide accurate and timely market size and segmentation, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, monthly, and weekly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.
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About IDC
International Data Corporation (IDC) is the premier global provider of trusted technology intelligence, advisory services, and events. With more than 1,000 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 100 countries. IDC’s analysis and insights help IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. To learn more about IDC, please visit www.idc.com. Follow IDC on X at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
About the GTDC
The Global Technology Distribution Council is the industry consortium representing the world’s leading tech distributors. GTDC members drive an estimated $150 billion in annual worldwide sales of products, services, and solutions through diverse business channels. GTDC conferences support the development and expansion of strategic supply-chain partnerships that continually address the fast-changing marketplace needs of vendors, end customers, and distributors.