July 23 (Reuters) - Thermo Fisher on Wednesday

raised the lower end of its annual profit forecast, banking on

strong demand for its tools and services used in drug

development and said the tariff situation was improving.

Shares of the company were up 10% in early trading.

As some of the trade tensions show signs of easing, peers

such as Danaher ( DHR ) have also cited a steady demand from

pharmaceutical clients.

"The US-China tariff situation has improved significantly

versus our prior guidance assumptions," said Chief Financial

Officer Stephen Williamson in a post earnings call.

The medical equipment maker now expects annual adjusted

profit of $22.22 to $22.84 per share, compared to its previous

estimate of $21.76 and $22.84 per share. Analysts on average

were expecting $22.32 per share.

The company also beat quarterly profit estimates, helped by

strong sales in its laboratory products segment.

Danaher ( DHR ) on Tuesday raised its annual profit forecast

citing strong demand for tools and services used to make

vaccines and therapies, and said it is seeing a robust number of

clinical trials and therapies under development.

On an adjusted basis, Thermo Fisher reported a profit of

$5.36 per share for the quarter ended June 28, beating analysts'

estimate of $5.22 per share, as per data compiled by LSEG.

The company said its business strategy is helping adjust its

supply chains in the tariff environment and to actively manage

its cost base.

Thermo Fisher also announced that CFO Williamson has decided

to retire, effective March 31, 2026, and named Jim Meyer,

currently vice president of financial operations, as

Williamson's successor to the role.

The Waltham Massachusetts-based company's quarterly revenue

rose 3% to $10.85 billion, compared to analyst estimates of

$10.68 billion.

Sales at its laboratory products segment, which makes up

more than half of Thermo Fisher's total sales came in at $6

billion, above estimates of $5.79 billion.