Cisco AI Push Sets The Stage For Q2 Earnings: Will Investors Buy In?

Cisco Systems Inc CSCO will be reporting its second-quarter earnings on Wednesday. Wall Street expects 91 cents in EPS and $13.87 billion in revenues as the company reports after market hours.

The stock is up 24.88% over the past year, 5.63% year-to-date.

Cisco Positioning Itself At The Heart Of AI Action

Cisco is gearing up for its earnings report with a wave of AI-driven innovations that could give its stock a turbocharged jolt. The tech giant recently launched its new smart switches featuring intelligent networking silicon and embedded data processing units (DPUs), poised to redefine AI data center designs.

But that's not all — Cisco is empowering service providers to rethink their networks to better handle the avalanche of AI data and traffic, unlocking new monetization opportunities in the process.

Partnering with Mistral AI, Cisco has also rolled out an AI Renewals Agent to simplify the renewal proposal process, a key milestone in its ongoing Customer Experience (CX) evolution.

As AI becomes the backbone of the next-gen internet, Cisco seems to be positioning itself at the heart of the action — now investors will be watching closely to see how these innovations translate into dollars when the company reports earnings.

Let’s look at what the charts indicate for Cisco stock and how the stock currently maps against Wall Street estimates.

Read Also: How To Earn $500 A Month From Cisco Stock Ahead Of Q2 Earnings

Cisco Stock Moderately Bullish Ahead Of Q2 Earnings

Cisco stock is exhibiting a moderately bullish trend, though slight selling pressure is emerging. The stock is trading above key moving averages, signaling sustained upward momentum.

Chart created using Benzinga Pro

With Cisco stock at $61.75, it is positioned above the 20-day simple moving average of $61.14 and its 50-day simple moving average (SMA) of $59.86 — both indicating a bullish trend. Additionally, the stock remains well above its 200-day SMA of $52.65, reinforcing long-term strength. However, the eight-day SMA at $62.06 lies above the stock reflecting some selling pressure.

The Moving Average Convergence Divergence (MACD) indicator stands at 0.77, further supporting a bullish outlook. However, the Relative Strength Index (RSI) of 57.02 suggests that is Cisco stock keeps rising, it could be approaching overbought territory, potentially leading to near-term consolidation or a pullback.

Investors should monitor whether the stock maintains support at shorter-term moving averages to confirm the continuation of its bullish momentum.

Cisco Analysts See 8% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Cisco stock stands at a Buy currently with a price target of $59.50. Citigroup and Morgan Stanley’s latest ratings suggest an 8.01% upside for Cisco, with a $66.67 average target.

Price Action: Cisco stock was trading at $62.49 at the time of publication.

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