Thermo Fisher raises annual profit forecast on resilient demand for its tools and services
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.N), opens new tab 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.N), opens new tab 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.
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