Abbott Laboratories (NYSE: ABT) saw its stock surge 5.28% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report that exceeded analyst expectations. The healthcare giant reported strong performance across its business segments, particularly in medical devices and diabetes care.

Abbott posted adjusted earnings per share of $1.09 for Q1, surpassing the consensus estimate of $1.07. Revenue for the quarter rose 4.0% year-over-year to $10.36 billion, slightly below analysts' projections of $10.40 billion. The company's robust financial results were primarily driven by its medical devices segment, which saw sales increase 9.9% on a reported basis and 12.6% on an organic basis.

Robert B. Ford, chairman and chief executive officer of Abbott, stated, "Once again, Abbott's diversified business model delivered top-tier sales and EPS growth. It is this diversification and execution that allows Abbott to navigate through periods of uncertainty and continually deliver sustainable growth."

Notably, Abbott's diabetes care business was a standout performer, with sales of continuous glucose monitors reaching $1.7 billion, representing an 18.3% increase on a reported basis and 21.6% on an organic basis. The company's FreeStyle Libre product line continued to see strong adoption and contributed significantly to this growth.

Looking ahead, Abbott reaffirmed its full-year 2025 guidance, projecting organic sales growth in the range of 7.5% to 8.5% and adjusted earnings per share of $5.05 to $5.25. For the second quarter of 2025, the company expects adjusted earnings per share between $1.23 and $1.27.

While Abbott's overall outlook remains positive, the company did acknowledge potential headwinds from tariffs later in the year. During the earnings call, executives estimated the tariff impact in 2025 to be a few hundred million dollars, with the effects expected to begin in the third quarter.

Despite these challenges, investors appear to be focusing on Abbott's strong current performance and diversified business model, as reflected in the stock's significant pre-market jump. The company's ability to navigate uncertainties while delivering growth across its portfolio continues to bolster investor confidence in its long-term prospects.