Cisco Earnings Report Expected to Drive 7% Price Swing

Cisco is set to report its earnings on Wednesday afternoon, and traders are anticipating a significant move in the stock price. According to recent options pricing, investors expect Cisco's shares to swing up to 7% by the end of the week.

This potential volatility could see the stock rise as high as $129 or drop below $112 from its current closing price on Tuesday.

The company has rallied close to 60% since the start of the year, driven by AI-driven demand for its networking hardware. However, this growth has slowed in recent weeks due to a broader pullback in the AI trade.

Cisco is expected to report quarterly revenue of $16.83 billion, up about 15% from last year, and adjusted earnings of $1.17 per share, up from 99 cents per share the same time a year ago.