Cisco‘s strong recurring revenue growth is thanks to a “phenomenal innovation pipeline,” CEO Chuck Robbins said Thursday.
reported better-than-expected earnings and revenue Wednesday evening, sending shares up as much as 7 percent.
“We have a phenomenal innovation pipeline. We have the strength and the flexibility of our balance sheet. And we have a very excited team who’s executing really well,” Robbins told CNBC’s “Squawk on the Street.”
Cisco has beat Wall Street expectations every quarter since Robbins took the helm 10 quarters ago. He told CNBC recurring revenue — which now accounts for 33 percent of total revenue — was one of his earliest priorities.
“We wanted to re-accelerate the innovation in our core franchises and we wanted to begin to execute on this transition to more software, higher degrees of recurring revenue,” Robbins said.
Cisco stock is up more than 35 percent in the 12-month period.
–CNBC’s Jordan Novet contributed to this report.
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