Equities weekly outlook: Burberry, Vodafone, Cisco

Burberry full-year earnings preview

Burberry will release full-year earnings on May 14. The results are expected to provide a key test of the “Burberry Forward” transformation programme introduced under CEO Joshua Schulman.

Expectations are for revenue to fall around 1% to £2.43 billion for FY2026, with operating profit forecast at roughly £96 million.

Recent trading updates suggest Burberry’s performance may finally be stabilising after several difficult years. In its latest interim results, comparable store sales returned to growth in Q2 for the first time in two years.

The key focus for investors will be evidence that Burberry’s turnaround strategy is gaining traction. The plan aims to reposition the brand around timeless British luxury while streamlining operations and improving profitability.

Regional trends remain uneven. The US and Europe have shown signs of resilience, while China remains more challenging amid softer luxury demand and weaker Chinese tourism flows. China remains crucial for the broader luxury sector, leaving Burberry closely tied to any recovery in Chinese consumer spending.

How to trade Burberry earnings

Burberry shares have recovered from the 2026 low of 980, rising to 1258 — the highest level since February —as the price breaks out of a symmetrical triangle pattern having pushed above the 200-day SMA.

Buyers will look for a move above 1260 to create a higher high and extend the recovery towards 1380.

On the downside, support is seen at 1200 near the 200-day SMA, followed by 1115, the 50 SMA.

Vodafone full-year results preview

Vodafone will release full-year results on May 12, with investors looking for further signs that the group’s restructuring strategy is beginning to gain traction.

Vodafone is expected to report pre-tax profit of €3.21 billion, down 2% year-on-year, while earnings per share are forecast at €0.09, up 9%. Revenue is expected to rise 8% to €40.5 billion.

Germany remains the key focus. Vodafone’s largest market has also been its biggest problem area, pressured by regulatory changes affecting broadband and television revenues. However, conditions may be improving after German service revenue returned to growth in Q2, marking a potentially important turning point.

Investors will also focus on the integration of Three UK into Vodafone’s UK operations. The combined business is now the UK’s largest mobile operator, creating opportunities for greater scale and network investment.

Meanwhile, African operations are becoming an increasingly important growth driver. Recent trading updates showed double-digit service revenue growth, supported by strong demand for mobile data and financial services.

How to trade Vodafone earnings

Vodafone shares have been trending higher, forming a series of higher highs and higher lows, with the stock up around 18% year-to-date.

Buyers will look for a break above 121, the February high, to extend the bullish trend.

Support is seen around 113 near the 50-day SMA, followed by the April low at 104.50.

Cisco earnings preview

Cisco will report earnings on May 13 after the market close, with investors watching for further evidence that AI spending is spreading beyond chipmakers into broader infrastructure providers.

Analysts expect EPS of $1.04 on revenue of $15.56 billion.

Cisco set a high bar in its previous quarter, reporting revenue of $15.3 billion, up 10% year-on-year. Orders linked to AI infrastructure and hyperscale customers reached $2.1 billion.

The company guided FY2026 revenue towards a range of $61.2 billion to $61.7 billion, with CEO Chuck Robbins saying Cisco is well positioned to provide infrastructure for the AI era.

However, competition is intensifying. Cisco’s push into AI networking places it in more direct competition with Broadcom and NVIDIA, key suppliers of AI data centre technology.

Guidance will likely matter as much as the headline numbers, with investors focused on:

• Whether AI-related orders continue to grow
• Whether cloud customers are converting orders into revenue
• Whether component and infrastructure costs remain under pressure

How to trade Cisco earnings

Cisco shares have been trending higher from the 2026 low near 72.60, recently reaching a record high around 97. RSI remains modestly overbought, suggesting some consolidation may occur.

With little resistance overhead, buyers will look for a move above the key $100 level.

Support is seen at $91 near the May low. A break below there would expose the 50-day SMA around $87, followed by the April 28 swing low near $85.