About the Security (NASDAQ: CSCO)
Cisco Systems, Inc is an American multinational digital communications technology company headquartered in San Jose, California.
Cisco develops, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products.
Stock background:
Cisco Systems shares (CSCO) have hit a record high in May, propelled by a jump in revenue growth, thanks to robust demand for AI infrastructure and networking solutions. Moreover, the shift toward a subscription-based software and services model has improved the predictability of earnings.
According to some estimates, the company is tracking higher single-digit growth in revenue, way above the past three-year average annual growth rate. The bullish story in Cisco was first highlighted last year – “Multi-month Range Breakout,” released in mid-August 2025. The stock is up almost 40% since then.
The company is expected to announce its Q3 fiscal year 2026 earnings on May 13. In addition to earnings and guidance, key focus will be on AI hyperscaler orders – year-to-date orders are tracking over $4 billion compared with the FY guidance of in excess of $5 billion, with one quarter still left, according to market estimates.
Higher-than-expected earnings could push the stock higher.
CSCO (Weekly):
Technical Analysis on Cisco Systems (NASDAQ: CSCO)
Our proprietary system, TradersGPS (TGPS), has been Bullish on Cisco Systems since late 2024. As per our system, Blue candles indicate that the trend is up, while Red candles indicate that the trend is down.
Signals appearing on the weekly charts have multi-week/multi-month investment implications, typically suiting those investors with a longer time horizon.
Notwithstanding a couple of Red candles last year, the colour of the candles has been largely Blue. The Red candles that appeared in April were due to rounding errors, and not a reflection of trend reversal.
That is because the Cumulation of Momentum indicator (a measure of the trend) has been essentially above 0, signifying an uptrend.
CSCO (Monthly):
Breakout Above 2000 High
The stock has broken above major resistance at the 2000 high of 82, and there is no sign of reversal.
This follows acceleration following the breakout from a slightly upward sloping channel from 2007 to 2008. Indeed, the recent surge in momentum is a reflection of the strength of the uptrend.
The break above 82 has paved the way initially toward the psychological 100, followed by 106 (the 1.618x projection of 2011-2019 uptrend), and 123 (the 2x projection).
Key Support Level
On the downside, CSCO would need to fall below immediate support at the end-April low of 85.75 for the short-term upward pressure to fade.
In terms of strategy, I would hold on to the stock if I were long the stock. However, current levels seem stretched for fresh longs; I would much rather wait for a dip.
FAQ
Why is Cisco stock hitting record highs?
Strong demand for AI infrastructure and networking solutions has boosted Cisco’s revenue growth and investor sentiment.
What is the key catalyst for Cisco stock?
The upcoming Q3 FY2026 earnings report and AI hyperscaler order growth are major catalysts for the stock.
What does TradersGPS indicate for CSCO?
TradersGPS has remained bullish on Cisco Systems since late 2024, indicating a sustained uptrend.
Where is the key support for Cisco?
Immediate support is located near the end-April low at 85.75.
