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 modernise 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% 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 & semiconductors still 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
Commentary
“IT spending continues to grow as organisations respond to core imperatives such as AI adoption, security management, and digital transformation,” says Ruth Flynn, research vice-president for 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 modernise and scale.”