Abbott’s diabetes device segment delivered a stellar performance in the first quarter of 2025, driving significant revenue growth despite the company’s overall sales slightly falling short of Wall Street expectations. The medtech leader reported a 4% increase in year-over-year revenue, totaling $10.36 billion.
The company’s adjusted first-quarter profit came in at $1.09 per share, sparking a 1% rise in shares when the market opened on April 16. The positive market reaction continued into the mid-morning, with Abbott’s market capitalization now standing at $218.9 billion.
Abbott’s medical device business emerged as the primary revenue driver in Q1, with a particularly strong performance from its diabetes segment. The diabetes unit posted a notable 16.5% year-over-year sales growth, with US sales soaring by 27% to reach $748 million. International sales for the Diabetes Care unit amounted to $1.08 billion.
Sales of Abbott’s continuous glucose monitors (CGM), including the FreeStyle Libre line, saw an 18.3% increase, totaling $1.7 billion. This growth was supported by the expansion of manufacturing capacity, including the opening of a new facility in Ireland in late 2024.
Abbott’s diabetes segment is positioned for further success as the global market for diabetes devices is projected to surpass $44 billion by 2033. Abbott holds a 1.4% share of both the CGM and insulin pen device markets, according to GlobalData analysis.
Despite competition from major players like Insulet and Medtronic, Abbott’s diabetes sales show positive momentum. Additionally, the company’s electrophysiology business contributed $629 million in global sales. Abbott also marked its entry into the pulsed field ablation (PFA) market in Europe with the CE marking of its Volt system last month.
Looking ahead, Abbott has projected organic sales growth of 7.5% to 8.5% for the full year of 2025. The company also announced a $500 million investment to expand two of its US manufacturing sites in Illinois and Texas, further bolstering its position in the global market amidst evolving trade policies.
This solid performance in the diabetes segment, alongside other strategic investments, positions Abbott well for continued growth throughout the year.
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