ASBISc Enterprises Plc has reported a record net profit of $36.3 million and revenue of $1.27 billion in Q1 2026, significantly outpacing the broader eurozone ICT distribution trend as demand for AI infrastructure and servers continues to accelerate globally.

The Cyprus-based IT distributor, which is more commonly known as Asbis, said results for the three-month period ended March 31, 2026 marked the best quarter in its history.

Specifically, revenues were up 72 per cent year-on-year compared with Q1 2025, while operating profit tripled to $54.5 million from $16.4 million a year earlier.

The company also recorded a sharp improvement in profitability, with gross profit margin rising to 8.62 per cent from 7.00 per cent in Q1 2025, reflecting stronger pricing power and a shift towards higher-value product categories.

Asbis said results for Q1 2026 stand out in a European context, where ICT distributors have generally seen more moderate growth, as the company benefits disproportionately from exposure to AI-related server demand and hyperscale data centre expansion.

A key driver of growth was the surge in servers and server blocks, which became the group’s largest product category ahead of smartphones for the first time, reaching $407.9 million in Q1 2026, up 233 per cent year-on-year.

Asbis said global demand for servers has remained resilient despite macroeconomic pressures, driven by continued investment in artificial intelligence infrastructure and hyperscale cloud platforms.

In a statement included in the interim report, Asbis highlighted the scale of its performance.

“The quarter-over-quarter increase in net sales reflected strong growth across almost all geographic segments, and this was the best overall quarter in Asbis history,” the company said.

Operating performance also strengthened significantly, with EBITDA rising to $58.2 million, compared with $18.4 million in Q1 2025, while net profit after tax nearly quintupled year-on-year.

Asbis said growth was broad-based across regions, with the Commonwealth of Independent States and Central and Eastern Europe continuing to represent the largest share of group revenues, a structure that remained unchanged in Q1 2026.

At product level, the company reported strong growth across multiple lines, with servers leading expansion due to accelerating enterprise and public-sector investment in AI infrastructure.

Country-level performance showed particularly strong gains in several markets, including Taiwan, where sales grew 1,992 per cent, the Netherlands up 385 per cent, Ukraine up 168 per cent, Azerbaijan up 120 per cent, and Kazakhstan up 86 per cent.

Asbis also expanded its global logistics footprint during the period, opening two new warehouses in April 2026 in Accra, Ghana and Abidjan, Ivory Coast, as part of its strategy to strengthen its position in fast-growing African technology markets.

The company said the move enhances its ability to support partners and system integrators across Africa through faster logistics, improved product availability and more efficient supply chains, complementing its network of more than 40 warehouses across the EMEA region.

In Kazakhstan, Asbis said the market environment had improved, supported by upgraded customs and border-control systems and the full operational rollout of a national IMEI-blocking system.

The company added that Kazakhstan is undergoing one of the fastest digital infrastructure expansions in Central Asia, driven by hyperscale data centres, sovereign AI infrastructure and enterprise digitalisation, positioning Asbis as a key distributor of server components and AI-ready hardware.

In Ukraine, despite ongoing conflict, Asbis said it continued operating across business, consumer and premium retail segments, with demand remaining strong due to digitalisation of government services, remote work and reconstruction needs.

In the Middle East, the company reported disruption across Gulf Cooperation Council markets due to regional conflict, but said operations remained stable and deliveries continued.

Asbis said in March 2026 it was able to fulfil most of its planned budget, noting that around 60 per cent of supply in the region is delivered by air, meaning the closure of the Strait of Hormuz had limited impact on logistics.

The company also confirmed progress on its dividend policy, with the board recommending a final dividend of $0.35 per share, bringing total dividends for 2025 to $0.55 per share, the highest in its history.

Asbis said it remains committed to maintaining a strong dividend policy while preserving sufficient liquidity to support future growth.

In addition to financial performance, the group highlighted strategic developments, including the integration of Samsung store network accounting systems into its own platforms, improving financial reporting and inventory management.

The company also launched a corporate social responsibility initiative in Ukraine, delivering power generators to healthcare facilities in the Dnipropetrovsk region to ensure uninterrupted electricity supply during outages.

Asbis expanded its distribution agreement with ABBYY across eight additional countries in Eurasia, broadening access to AI-powered document processing solutions in Tajikistan, Uzbekistan, Kazakhstan, Armenia, Georgia, Azerbaijan, Moldova and Mongolia.

It also joined the government of Cyprus and Plug and Play as a founding partner of a new initiative aimed at scaling the local start-up ecosystem in Limassol, positioning Cyprus as a regional innovation hub linking startups with global capital and markets.

Looking ahead, Asbis said it expects continued growth driven by cloud and AI infrastructure investment, while identifying Africa and Saudi Arabia as key expansion markets alongside further development of its Breezy trade-in business and proprietary brands.

We have completed the best quarter ever, a great achievement for us that we are all proud of,” the company said.

“Once again, we have demonstrated our strength and ability to adapt to new market conditions and grab all possible opportunities that are presented,” it continued.

“We look to the forthcoming months of 2026 with confidence and optimism,” the company added.