and ceo chuck robbins will be on. >>> sales force hiking outlooks.aying its cloud strategy is what has set it apart from competitors. >> our competitors have been dramatically weakened by not shifting aggressively to the cloud. look at oracle. at sap. look at the messages they have delivered right on the show but they haven't delivered their products. they haven't trampled their -- transformed their businessed. >> -- the firm saying a combination will allow them to cut costs by $400 million annually. the video game maker take two posts fourth quarter results that beat on both fronts. the firm's forecast however did disappoint and the stock dipped lower. it's lower by less than 1%. >>> let's dig deep entire one of the bigger corporate stories of the day. and that's walmart. the retail sector has been under intense pressure recently following disappointing earnings from others. landon dowdy joins us. >> sales, nanls forecasts slightly higher. and despite recent retail wreck they say walmart should be insulated thanks to its grocery operation. but margi

on the conference call, chuck robbins, the executive team at cisco, talking a little bit about where they see the growth. perhaps a little about the macro economic environment. this is the part of the report people pay attention, because it's the bellwether portion. and what are the growth drivers, and he was asked about the current environment the company is operating in. this is what he said on the conference call just about 15 minutes ago. >> in the near term, we see obviously a mix of a pretty cautious environment still, because we do see customers spending where they need to spend. but don't misunderstand, there's still amount of caution in the market. but i think we've executed well this quarter. we had five of our seven product categories that were in positive growth. three of those in double digits. we had all the g.o.s in positive growth. >> this is a company that like many others out there is trying to make a transition from being more of a hardware company to being more of a software and services company. two of those divisions that robbins spoke of that are in double-digi

chuck robbins explains his outlook. >> i think the data switching performance says that customers alsootion of a hyper cloud notion. robbins went on to say that earnings are not where they should be. earnings, thish is the software maker known for engineering design programs. was not untilhare the sales kind of soft. joining us now is coral. karl, thank you so much. this is away from traditional licensing. how far is that transition? >> we are pretty far into it. we are about halfway through it. we were arst started, flagpole into the tent. every software company is going to be towards this transition. the transition is going great. that we wereort way better than expected. all things are good. >> sales are down as you go into this transition. issued, what would >> out again? we don't want to. this means people are moving to the new model faster. will we got to report was the number of subscriptions way exceeded our guidance. front andless up revenue goes down. i would love to have the same thing happened next quarter. this is the kind of paradox goal situation. after that, rings retur

scarlet: that was chuck robbins today. alix: much more coming up on "bloomberg markets."♪ ♪ let's over to julie was the details on the headlines. julie: we're looking at your been publishing and get that -- ganette. politico is reporting that tribune is looking to turn the tables and make an acquisition offer for gannette. they are telling a gathering of some of the l.a. times sales staffers he's working on a video takeover gannette. and attorneys are also preparing this potential bid. a little head scratching about this. right now to be in is about a $418 million company well-connected -- while gannette is about a $1.8 billion company. though shares took a leg higher on these headlines. it went up by about more. of about 1.4%. definitely a spike on these headlines. we will update you when any more news and developments forget. alix: we spoke to michael ferro just a few weeks ago. no way, no how. he's like, i don't care what is happening, he will not be selling in this particular circumstance. scarlet: we asked about that. alix: thank you so much. scarlet: we have new dev

ceo chuck robbins said investments over the last few years are starting to pay off.treet is bullish, including oppenheimer which is saying that cisco is in a class of its own. troy jensen is saying that cisco is to be bought after the third quarter results mark. mark: stocks are soaring, the analysts are bullish, what does it mean? abigail: not much. cisco shares are caught in a descending range between buyers and sellers. or $30 per share. the lower highs say the sellers are slightly in control of the battle between the bulls and the bears. we see the stock hitting up toward the selling rusher, resistant to wear the sellers are. the buyers will have their work cut out. the convention has to increase, otherwise the ongoing battle is likely to continue in the shares of cisco systems. mark: great stuff. abigail doolittle at the nasdaq. betty, let's do walmart. betty: walmart shares are rising after the world's largest retailer reported first-quarter results that beat estimates on the heels of disappointing numbers from target and macy's. it suggests in the retail secto

chuck robbins explained his positive outlook earlier on bloomberg.ching space particular, data center switching performance shows that customers buy into the notion of a hybrid cloud world. they are taking advantage of public cloud services and continue to build out infrastructure as well. emily: he went on to say that earnings are not where they should be, but cisco is in the early days of transition away from hardware. earnings, the software maker known for engineering software like pad. sales came in soft, continuing a trend from the next -- last two quarters. joining us now, carl bass and still with us, ethan kurzweil. is in the midst of a business transition away from licensing towards cloud-based subscriptions. how is it going? guest: we are pretty far into it. we started a year and a half ago and are about halfway through it. when we first started, we were the high pole in the tent. now it is obvious every software company will go to term-based subscription. the transition is going great. we are way better than most people expected. all things

you heard what chuck robbins said. >> yes. >> europe is actually better. i saw the car registration numbers. they're not bad. put it this way, i don't want them to move because i don't think it really helps the situation. i keep thinking about what happened in december and january. it was directly related to that move. but if everybody knows they're going to move, then a lot of stuff will be built into that. >> all right. david mentioned crm. they raise beat on virtually every metric. here he is with jim last night. >> we are well on our way to go right past our $10 billion dream. a lot of people weren't sure sales force could get to $1 billion. that's where we were when we first started talking. first time i was on your show. just look at oracle and sap. you can see the messages they deliver on the show. but they haven't delivered their products. >> growth up 31 is double the estimate. >> yeah. you do the unbilled and the billed, you get to $11 billion which is why he says $10 billion is in the bag. he goes, this is amazing, one reason that we're doing so

tomorrow, do not miss cisco ceo chuck robbins on "bloomberg go"" 9:30 a.m. new york time.nother stock we're watching, tesla shares barely budging after the company announced a $2 billion public offering. the electric carmaker will sell about $1.4 billion worth of stock. the rest will be sold by ceo elon musk. so, why now? on the last earnings call, musk said he was planning to make as many as 200,000 model three's by the second half of next year as well as complete a massive battery factory in nevada and add more charging stations, which would require a 50% increase in spending, so tesla needs extra cash to deliver. as part of the announcement, musk announced he will donate 1.2 million shares of tesla stock to charity. coming up, two years ago we met google cardboard. this year, we met google's souped-up plan for an entire vr ecosystem. we will dive into virtual reality next. plus, more on the futuristic media when we sit down with the ceo of periscope. his thoughts on twitter's competition with facebook for video later this hour. ♪ emily: virtual reality is constantly on

who posted kirk quarterly earnings that topped estimates and we're joined by the companies cio chuck robbinsme back. >> good to talk to you again. david: you are leading cisco through a transition from largely a hardware business into more of a software or services business. how far along in that transition are you at this point and how much are we seeing in the earnings reported? >> first of all, we had a very good quarter. i am pleased with our ability to execute and what we have described as a uncertain macro environment. we have a vision to help our customers told out the neck wave of this massive internet iot initiative that's underway. devices andons of that will require a combination of both hardware and software. there are a lot of applications that will be software driven. what you saw this week in our announcement was three great examples of our security portfolio, our collaboration portfolio and cloud-based networking where re-drove growth in those businesses but also saw significant deferred revenue growth on subscription and software. i would say we are in the early days of this

and ceo chuck robbins will be on "squawk on the street" tomorrow morning a first on cnbc interview, toesult. we'll march on to an earnings alert orp sales force. >> we got a beat from sales force both on adjusted eps and revenue. eps looks like for the fiscal first quarter looks like we have earnings beat of 24 cents a piece. 23 cents. still that represents a jump of close to 50 percent for theme year on year. revenue in line with expectations. slight beat here. coming in 1. 92. and raised full year guidance to 8.16 billion to 8.230 and hence the shares are rallying in afterhours. back to you. >> what do you guys think? >> sales force has been -- i shouldn't -- they have been delivering. they have that huge premium on the name. so if you look at a stock slow and steady like an sap you look at apples and oranges. i i wouldn't be surprised if you start to see this maybe switch gears after hours. >> one of the things that is a big concern for investors on this name is how much cash they spend to drive that continued growth and granted they have been doing a very good job. but the question

and chuck robbins will be on the squawk on the street today in a first on cnbc interview. >> couple of things going on today. investors getting a fresh snapshot on the labor market stood today. and weekly jobless claims. unemployment expected to drop back after hitting a 15 month high in the previous week. at 10:00 a.m. look for the monthly philly fed survey. stanley fischer and bill dudley will be speaking today also. and walmart and dick's sporting goods report before the opening bell and after the close applied materials and the gap. >>> futures are negative this morning. dow down about 81. s&p down close to 10. the nasdaq down close to 20. right now the dow even before these numbers this morning after yesterday's close, the dow was down for the week to date which would make this on pace for the fourth negative week in a row for the first time since its october 2014. nasdaq closed up about 23 points o. outperformed the dow yesterday. the big question is what is the fed going to do come june. you can see there are red arrows in europe as well. the dax down 1.4%. the cac off 1%. the f