Adds details on tariff impact in paragraphs 5-7

By Sneha S K

July 23 (Reuters) - Thermo Fisher TMO.N said on Wednesday the tariff situation was improving and raised the lower end of its annual profit forecast on strong demand for its products used in drug development, sending the company's shares up 12%.

As some of the trade tensions show signs of easing, peers such as Danaher DHR.N have also cited a steady demand from pharmaceutical clients.

"The US-China tariff situation has improved significantly versus our prior guidance assumptions," said Thermo Fisher CFO Stephen Williamson in a post earnings call.

The medical equipment maker now expects the lower end of annual adjusted profit at $22.22 per share, compared to its previous estimate of $21.76. It maintained the higher end of the forecast at $22.84 per share.

The change to its forecast accounts for an increase of $120 million in revenues than previously expected as well as the second-quarter beat, the company said.

Thermo Fisher, however, said given the fluidity of the tariff and trade policy environment, it was keeping its assumptions for any impact in the second half unchanged.

"Should global tariffs remain as they are today, we'll likely have upside for new guidance," Williamson added.

The company reported quarterly profit above Wall Street expectations, helped by strong sales in its laboratory products segment of $6 billion. Analysts were expecting segment sales of $5.79 billion, as per data compiled by LSEG.

On an adjusted basis, it reported a profit of $5.36 per share for the quarter ended June 28, beating analysts' estimate of $5.22 per share.

Thermo Fisher also announced that CFO Williamson has decided to retire, effective March 31, 2026, and named insider Jim Meyer as his successor.

(Reporting by Sneha S K in Bengaluru; Editing by Shailesh Kuber)

((Sneha.SK@thomsonreuters.com;))