Cisco Investors Should Watch Non-AI Growth as Premium Valuation Takes Hold

Cisco Systems (CSCO) is often associated with AI infrastructure, but that segment only accounted for about 6% of its revenue in fiscal 2026. The rest of Cisco's business consists of networking and security products sold to enterprises and telcos.

The company's stock has returned 61% over the past year, with investors paying for growth across the entire company, not just AI. To understand how fast Cisco's non-AI business is growing, we need to look at management's guidance.

Cisco expects its business outside of AI to grow around 10% in fiscal 2027, which is significantly faster than previous forecasts. This growth rate is crucial for investors, as it will determine the sustainability of Cisco's premium valuation.