Cisco sees a dip — What is pressuring the stock

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Cisco slides 11.27% today to $75.95

Highlights

Cisco reported record Q2 fiscal 2026 revenue of $15.3 billion, up 10% year-over-year, with GAAP EPS rising 31% to $0.80.
The company raised its full-year revenue forecast and introduced the Silicon One G300 AI networking chip amid strong AI infrastructure demand.
Technically, Cisco shares dropped 11.27% to $75.95, now below the MA-20 ($79.15) and MA-50 ($77.91), with key support at $75.09 and long-term support at $70.42.

Robust earnings and AI growth boost outlook amid capital returns

Cisco reported strong Q2 fiscal 2026 results with record revenue of $15.3 billion, representing a 10% year-over-year increase. GAAP earnings per share grew 31% to $0.80, and non-GAAP EPS rose 11% to $1.04. The company also increased its dividend, executed $3 billion in shareholder returns through dividends and buybacks, introduced the Silicon One G300 AI networking chip, and raised its full-year revenue forecast due to strong demand for AI infrastructure and networking solutions.

Anton Kharitonov, expert at Traders Union, sees Cisco’s recent price drop as a warning sign. He notes the sharp break below short- and medium-term moving averages, increasing the risk of further downside. Despite strong quarterly results, the market’s reaction signals that positive news may already be priced in. Momentum oscillators have shifted, while strong selling dominates intraday action. Kharitonov cautions, "Structural risks outweigh near-term rebounds — staying defensive on CSCO is prudent until the $75.09 support proves reliable."

Viktoras Karapetjanc, expert at Traders Union, believes Cisco’s fundamental profile remains robust. He highlights strong revenue growth and record earnings, supported by rising AI infrastructure demand and increased dividends. Karapetjanc sees the recent volatility as an opportunity — the long-term bullish structure is still intact above the MA-200. He expects institutional flows and product innovation to drive renewed upside momentum. "With solid fundamentals and growing end markets, I see further growth ahead for CSCO once sentiment stabilizes."

Parshwa Turakhiya, analyst, notes that sentiment has shifted abruptly as sellers took control intraday. He observes heavy downside pressure but sees potential for short-term swings near the $75.50 level. Technical divergences and volatility suggest tactical trading opportunities, with both rebound and breakdown scenarios in play. "For nimble traders, these price ranges offer both risk and reward as sentiment and momentum battle for direction."

Divergent momentum as sellers dominate intraday and oscillators reverse

Momentum readings are mixed: daily MACD and ADX still show underlying bullish momentum, but oscillators such as the RSI and Stoch RSI both indicate overbought conditions have reversed, with CCI also previously flagging overbought. BBP confirms sellers are dominating intraday, while the Awesome Oscillator’s direction has aligned with the broader bullish trend. The stock gapped sharply lower at today’s open (from $85.59 down to $79.83) and has continued falling to near the day’s low of $75.09, marking a steep 11.27% drop and reflecting high intraday volatility with persisting downside pressure; the price is currently near the session low after sustained selling. There are clear divergences between medium-term momentum, which remains constructive, and short-term oscillators and intraday action, which suggest strong seller control and abrupt shifts in sentiment. Previously it was reported that Cisco has introduced new AgenticOps capabilities to streamline IT operations and improve control, reflecting the company’s focus on AI-driven automation in network management. Last time, analysts noted that these advancements could strengthen Cisco’s position in the market by addressing the complexity of modern IT ecosystems and supporting reliability for enterprise clients.

Source of Data: CSCO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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