May 6, 2025

Medtech in 2025: Key Insights from Q1 Earnings

Medtech in 2025: Key Insights from Q1 Earnings

Medtech-earnings-by-company-2024

As we venture into Q2 of 2025, the medtech industry continues to navigate challenges while remaining on a positive growth trajectory. The early earnings reports from major medtech companies provide valuable insights into how the sector is performing and where it is heading. Despite the pressures of ongoing macroeconomic uncertainty, the first quarter of 2025 shows a sector that’s resilient, with many companies reporting strong growth across their key divisions.

Q1 2025 Earnings: Medtech’s Resilience Amidst Economic Pressures

The release of Q1 2025 earnings offers a snapshot of medtech in 2025 and highlights the market’s trajectory despite the ongoing economic challenges. The earnings reports reveal that, while macroeconomic issues like tariffs and supply chain disruptions are affecting the sector, medtech companies are proving adaptable and continue to grow.

  • Abbott: Abbott reported a 12.5% revenue growth in Q1 2025, driven by strong performances in their Structural Heart and Diabetes Care divisions. Abbott’s ability to achieve growth amidst a challenging landscape highlights the expanding opportunities in these areas, which are expected to continue driving revenue throughout the year.

  • Boston Scientific: Boston Scientific exceeded its revenue expectations, reporting a 22.0% increase in Q1 revenue, driven by the 26.2% YoY growth in its cardiovascular business. This growth is indicative of the increased demand for cardiovascular interventions, which are expected to remain a key growth driver for medtech in 2025.

  • Edwards Lifesciences: Edwards Lifesciences saw an 8.0% increase in Q1 sales, reaching $1.4 billion. The company has raised its full-year guidance, indicating strong performance ahead. However, the company also cautioned that the launch of its transcatheter mitral valve replacement (TMVR) device in the United States may experience a slower uptake than its EVOQUE transcatheter tricuspid valve system.

  • GE Healthcare: GE Healthcare reported a modest 4.0% increase in Q1 revenue, reaching $4.8 billion. While the company had outperformed in the United States, GE projected negative sales growth in China in the first half of 2025.

  • Intuitive Surgical: Intuitive Surgical saw a robust 19% year-over-year increase in Q1 revenue, amounting to $2.3 billion. However, the company highlighted that tariffs were negatively impacting its cost of sales, and tightening capital budgets were slowing investment in robotic systems.

  • Medtronic: Medtronic’s Q3 earnings showed a 4.1% increase in revenue, totaling $8.1 billion. The company had a strong performance in several segments, including pulsed-field ablation, valves, pacing, diabetes, and neuromodulation devices. However, it also reported challenges in China, where value-based pricing initiatives are limiting growth.

  • Johnson & Johnson MedTech: Johnson & Johnson MedTech achieved a 4.1% increase in Q1 sales, reaching $7.8 billion, fueled by acquisitions in its cardiovascular, surgical vision, and wound closure divisions. However, the company is facing competitive pressures, particularly in its energy and endocutter segments, which could affect its margins. Additionally, the ongoing value-based pricing program in China continues to impact the company’s revenue, particularly in the Chinese market, which remains a challenging environment for multinational medtech companies.

Medtech in 2025: Fundraising, M&A, and the Future of the Industry

Q1 2025 also saw a rise in fundraising and M&A activity, with LSI Alumni companies raising $1.37 billion across 45 deals. This growth is an encouraging sign of investor confidence in the sector, which continues to attract attention despite the broader economic uncertainties.

In the M&A space, companies are continuing to strategically invest in key technologies and market segments. Many companies are pursuing acquisitions and strategic partnerships to expand their portfolios and enhance their product offerings in response to shifting patient needs.

As we look ahead to the rest of 2025, expect to see more activity in the medtech space as capital continues to flow into innovative companies that are focused on AI, robotics, and less invasive treatments.

What Lies Ahead for Medtech in 2025?

The first-quarter earnings reports for 2025 show a medtech sector that is navigating through challenges while experiencing strong growth. Innovations in diagnostics, minimally invasive procedures, and AI continue to shape the future of medtech.

Despite ongoing economic pressures, such as tariffs and competitive market conditions, the medtech industry is well-positioned for success. With key players like Abbott, Boston Scientific, and Medtronic demonstrating resilience, the market for key segments will continue to expand.

As we move through 2025, medtech companies that embrace new technologies and remain adaptable in the face of market shifts will be at the forefront of driving the next wave of innovation and market growth. 2025 is set to be a year of progress, with increasing opportunities across emerging technologies and a continued focus on improving patient outcomes worldwide.

Want more insights like this? Register now to present at or attend our next medtech conference from June 10th-13th at the Ritz-Carlton, Millenia Singapore.