Abbott has posted strong revenue for its diabetes devices in Q1, despite overall sales for the company narrowly missing Wall Street expectations.
The medtech giant posted an increase in year-over-year overall revenue of 4%, giving total takings of $10.36bn.
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After reporting a positive adjusted first-quarter profit of $1.09 per share, shares in the company rose 1% at market open today (16 April). Share prices rose further into the mid-morning. Abbott has a market cap $218.9bn.
“Updates this quarter support our thesis that the company’s strong new product launches and portfolio in medical devices, along with its diversification across sectors, should lead to a manageable impact from macro on its supply chain. We thus continue to view Abbott as a name that should outperform in this environment,” William Blair analyst Margaret Kaczor Andrew said in an equity research note.
Abbott’s medical device business was the strongest driver of revenue in the first quarter, driven by strong performance in the diabetes segment. A strong year for the company’s diabetes devices led to a 16.5% sales increase compared to the same quarter in 2024. Abbott’s US market saw a particularly high jump in growth – a 27% year-over-year change to bring diabetes sales in the US alone to $748m. This compares to $1.08bn generated internationally for the Diabetes Care unit.
Sales of continuous glucose monitors (CGM), which includes the company’s FreeStyle Libre range, grew 18.3% to reach $1.7bn. The company boosted manufacturing capacity for its diabetes segment with the opening of a new facility in Ireland in late 2024.
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By GlobalDataThe global diabetes device market is forecast to grow to over $44bn by 2033, according to analysis by GlobalData. Abbott has a 1.4% market share of the CGM market and insulin pen device market, as per further GlobalData market analysis.
Segment sales for Abbott in Q1 this year are a positive sign for the company’s investors given that the diabetes field saw major product launches from rivals Insulet and Medtronic in 2024.
Abbott’s electrophysiology business also fared well, posting $629m in global sales. The company entered the lucrative pulsed field ablation (PFA) market in Europe last month, courtesy of Conformité Européenne (CE) marking for its Volt system.
Looking ahead to 2025, Abbott projects full-year 2025 organic sales growth between 7.5% and 8.5%.
Abbott has a strong track record of driving margin expansion historically, and while we do not believe it will be immune to the tariff dynamics, it should be well positioned on a relative basis to navigate through this environment,” Margaret Kaczor Andrew added.
Abbott also announced it would invest $500m in expanding two manufacturing sites in the US amid the continuing evolution of President Donald Trump’s tariffs. The doubling down in the US comes via the expansion of two of its sites in Illinois and Texas.
Note: This article was updated on 17 April to include analysis from William Blair analyst Margaret Kaczor Andrew.
