Cisco Stock Approaches $124.62 Resistance Ahead of Earnings Report

Cisco Systems is gearing up for its fourth-quarter fiscal 2026 earnings report after market close, and traders are watching closely as the stock approaches a key resistance level. The company's price has defended the $119.65 support zone and is now testing the trendline at $124.62, which could lead to a bullish breakout if it closes above this level.

Cisco's fundamentals look strong, with the company expecting $9 billion in AI hyperscaler orders for fiscal 2026, an increase from its original expectation of $5 billion. This is backed by Q3 revenues that increased by 12% year-over-year to $15.8 billion, and orders for products growing by 35% while networking orders grew by 50%.

The company's AI narrative is driven by real demand, with contracts signed by major hyperscalers such as AWS, Google Cloud, Meta, and Microsoft to expand their AI data centers. Cisco's opportunity lies in providing networking infrastructure at the edge of AI Accelerators, including switching, routing, optics, and chipsets that allow GPU, CPU, and memory cluster interconnectivity over high-speed links.

While security product sales were flat year-over-year, the company is experiencing three simultaneous growth cycles: hyperscaler AI spending, campus networking refresh, and security evolution. If Cisco meets its targets for revenue, earnings, and AI order commitments, the stock could surge to $129.75 after breaking through the $124.62 resistance level.

A daily close above $124.62 would indicate a bullish breakout, while a failure to break through this level could lead to consolidation at the $119.65 support zone. Cisco's technical setup is also supportive, with the RSI at 63 and trading above its moving averages.