2025 Medtech Industry Performance: Q2 Earnings Report

As we enter the second half of 2025, the medtech industry continues to showcase its resilience despite external challenges. Quarterly earnings season is a key opportunity to evaluate how major players in the industry are faring amid global economic uncertainty, geopolitical tensions, and shifting healthcare policies.

Here, we review the financial performance of some of the largest players in the medtech sector in Q2 2025, providing insights into the trends shaping the market and what these results mean for the industry’s outlook.

Q2 2025 Medtech Earnings: Performance Highlights

The latest data from Q2 earnings reports reveal a mix of growth, strategic adjustments, and a few challenges for medtech companies. While some companies continue to thrive, others are adjusting their strategies to stay competitive in a changing landscape. Let’s break down the numbers and trends.

Abbott: Leading with Strong Growth

Abbott’s Q2 revenue for its medtech business reached $18.9 billion, reflecting a 13.4% increase from the previous quarter. The company saw strong performance in areas like diabetes care, heart failure treatments, structural heart procedures, and electrophysiology. However, Abbott faced some challenges in China, where diagnostics and medtech sales saw a decline.

Analyst Takeaway: Abbott’s robust growth is a standout in the industry. Unlike some peers, Abbott has managed to expand its core business segments rather than scale back, capitalizing on high-growth areas. The company’s diversified portfolio and ability to maintain double-digit growth are strong indicators of its continued leadership in the market.

Boston Scientific: Surging Ahead with Strategic Acquisitions

Boston Scientific reported impressive Q2 results, with revenues growing by 22.8%, surpassing analyst expectations. The cardiovascular division, particularly the Farapulse pulsed-field ablation (PFA) system and Watchman products, continues to drive growth, despite concerns about the impact of US tariffs.

Analyst Takeaway: Boston Scientific’s aggressive acquisitions have positioned the company to continue outperforming its competitors. The company’s acquisitions of innovative technologies in the cardiovascular sector have helped it capture market share, and the integration of PFA technologies is a major growth driver for the company in 2025.

Edwards Lifesciences: Solid Growth in Structural Heart

Edwards Lifesciences, a leader in the structural heart valve market, reported Q2 revenue of $5.4 billion, with an 11.9% increase. The company raised its growth forecast for the year to 9-10%, reflecting the continued strong demand for TAVR and other structural heart solutions.

Analyst Takeaway: Edwards continues to maintain its leadership position in the structural heart valve market. Despite the maturity of the TAVR market, Edwards is seeing higher-than-expected growth, driven by efforts to expand adoption in new patient categories and international markets. The company’s focus on improving procedures for transcatheter mitral valve treatment remains a critical area to watch in the coming years.

Intuitive Surgical: Dominating the Surgical Robotics Market

Intuitive Surgical, known for its da Vinci robotic systems, reported a 21% revenue increase in Q2, with significant growth in system placements and accessories. The company continues to lead the surgical robotics market, with its innovative da Vinci platform being widely adopted across specialties like urology and gynecology.

Analyst Takeaway: Intuitive Surgical remains the undisputed leader in the surgical robotics market, with impressive growth despite an increasing number of competitors entering the field. However, the company is facing challenges, especially in international markets where regulatory and capital equipment restrictions remain a concern. 

Johnson & Johnson: Strong Performance in Cardiovascular and MedTech

Johnson & Johnson reported strong Q2 earnings, with 23.5% growth in its cardiovascular division. However, the company is facing pressure in certain areas like PFA and orthopedics, and continues to adjust its strategy to streamline operations.

Analyst Takeaway: J&J’s growth is largely driven by its acquisitions in the cardiovascular sector. Although competition in the PFA space is increasing, the company still controls more than 50% of the global cardiac ablation devices market. The company’s ongoing efforts to refocus on its core areas, including cardiovascular and medsurg, may lead to further strategic divestitures in non-core sectors.

Medtronic: A Modest But Steady Growth

Medtronic posted Q2 revenue of $33.3 billion, with a 5.4% growth rate. The company’s growth was driven by its PFA, structural heart, cardiac surgery, and rhythm management divisions, although it still lags behind some competitors in terms of overall growth.

Analyst Takeaway: Medtronic’s modest growth reflects its ongoing refocus on strategic areas, including its recently divested diabetes business. While the company continues to grow in key sectors, its growth rate is slower compared to peers, indicating that future earnings may depend on the successful integration and market uptake of its latest acquisitions.

The Outlook for the Medtech Industry in 2025 and Beyond

Looking ahead, the medtech industry remains optimistic, with continued growth across several key sectors, including cardiovascular devices, robotics, diagnostics, and structural heart. Despite challenges such as trade uncertainty and inflation, medtech companies are well-positioned to navigate these obstacles through innovation, strategic acquisitions, and expanding into emerging markets.

As Q2 2025 earnings reports show, the industry’s largest players are focusing on high-growth areas, while some are streamlining operations to increase their competitiveness. With continued investment in disruptive technologies and the ongoing trend toward strategic divestitures and acquisitions, the medtech industry is poised to remain a key driver of innovation and growth in healthcare.

The State of the Medtech Industry in 2025

Overall, Q2 2025 has shown positive momentum for medtech companies, with strong performances from major players like Abbott, Boston Scientific, and Intuitive Surgical. Despite challenges, the sector remains resilient, with many companies investing heavily in emerging technologies and expanding into new markets. Looking ahead, the medtech industry is expected to continue its growth trajectory, with exciting innovations and opportunities on the horizon.

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