We recently published 8 Stocks Jim Cramer Discussed & Mentioned An Important Quantum Computing Development. Cisco Systems Inc. (NASDAQ:CSCO) is one of the stocks Jim Cramer discussed. Cisco Systems Inc. (NASDAQ:CSCO) also reported earnings the day this show was aired. Ahead of the release, Cramer had asserted that the stock was cheap and its valuation was dissimilar to the trends in the year 2000. The earnings saw Cisco Systems Inc. (NASDAQ:CSCO)’s revenue and EPS beat analyst estimates. During the show, ...

Financial Data and Key Metrics Changes - The company reported record quarterly sales of $6.2 billion, marking an 18% organic growth in Communications and Security Solutions (CSS), 12% in Electrical and Electronic Solutions (EES), and a return to growth in Utility and Broadband Solutions (UBS) with a 3% increase [6][34] - Adjusted EPS grew 9.5% year over year and 16% sequentially, with both gross margin and EBITDA margin improving sequentially [7][35] - Organic sales growth accelerated to 12% in Q3, up from 6% in Q1 and 7% in Q2, indicating four consecutive quarters of accelerating momentum [5][10] Business Line Data and Key Metrics Changes - EES delivered organic sales growth of 12%, driven by construction, industrial, and OEM segments, with data center sales up 60% year over year [12][14] - CSS achieved 18% organic sales growth, supported by strong demand in data center solutions and enterprise network infrastructure [14][15] - UBS saw a 3% increase in organic sales, led by high single-digit growth in investor-owned utilities, while public power remained soft [22][23] Market Data and Key Metrics Changes - Total data center sales reached approximately $1.2 billion in Q3, representing 19% of total company sales on a trailing 12-month basis, with a year-over-year growth of 60% [6][17] - Broadband performance accelerated with sales up over 20% year over year, marking a significant improvement from previous quarters [22] Company Strategy and Development Direction - The company is focused on accelerating cross-selling initiatives and driving enterprise-wide margin improvement through technology-driven business transformation [7][8] - The strategic outlook for 2026 includes mid-single-digit organic sales growth, continued strength in electrical markets, and a return to growth in public power [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform market trends driven by secular growth in digitalization, electrification, and supply chain resiliency [8][35] - The company raised its full-year outlook for organic sales growth, adjusted EBITDA, and adjusted EPS based on strong business momentum [7][30] Other Important Information - The company redeemed $540 million of Series A preferred stock, optimizing its capital structure and reducing financing costs [26] - Free cash flow was a use of $89 million in Q3, attributed to increased working capital needs due to significant sales growth [10][24] Q&A Session Summary Question: How much did price contribute to growth by segment? - The overall pricing benefit in Q3 was just under 3%, with EES at about 4%, CSS at 2%, and UBS at 1% [38] Question: Can you provide insights on EES growth excluding data centers? - EES experienced strong growth across construction, industrial, and OEM segments, with notable increases in infrastructure-related projects [41][43] Question: What is the outlook for public power in the utility segment? - Public power is expected to return to growth in 2026, with current softness attributed to inventory build issues during the pandemic [107] Question: How will supplier volume rebates impact margins? - Supplier volume rebates contributed to gross margin expansion in Q3, and the company expects this trend to continue into 2026 [61] Question: What is the status of the digital transformation and cross-selling? - The digital transformation is progressing well, and cross-selling initiatives have significantly exceeded initial expectations, contributing to overall sales growth [63]

Financial Data and Key Metrics Changes - The company reported record quarterly sales of $6.2 billion, marking an 18% organic growth in Communications and Security Solutions (CSS), 12% in Electrical and Electronic Solutions (EES), and a return to growth in Utility and Broadband Solutions (UBS) [6][35] - Adjusted EPS grew 9.5% year-over-year and 16% sequentially, with both gross margin and EBITDA margin improving sequentially [7][36] - Organic sales growth accelerated to 12% in Q3, following 6% in Q1 and 7% in Q2, indicating four consecutive quarters of accelerating momentum [5][11] Business Line Data and Key Metrics Changes - EES delivered organic sales growth of 12%, driven by construction, industrial, and OEM segments, with data center sales up 60% year-over-year [13][14] - CSS achieved 18% organic growth, primarily from data center solutions, which were up over 50% due to large project activity [15][16] - UBS saw a 3% increase in organic sales, led by high single-digit growth in investor-owned utilities, while public power remained soft [23][24] Market Data and Key Metrics Changes - Total data center sales reached approximately $1.2 billion, representing 19% of total company sales on a trailing 12-month basis, with a year-over-year growth of 60% [6][18] - Backlog in UBS increased by 11% year-over-year, reflecting stronger customer order rates [23] Company Strategy and Development Direction - The company is focused on accelerating cross-selling initiatives and driving enterprise-wide margin improvement through technology-driven business transformation [8][9] - The strategic outlook for 2026 includes mid-single-digit organic sales growth, with continued strength in electrical markets and a return to growth in public power [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform markets due to secular growth trends in digitalization, electrification, and supply chain resiliency [9][36] - The company raised its full-year outlook for organic sales growth, adjusted EBITDA, and adjusted EPS based on increasing business momentum [8][31] Other Important Information - The company redeemed $540 million of Series A Preferred Stock, optimizing its capital structure and reducing financing costs [27] - Free cash flow was a use of $89 million in Q3, attributed to increased working capital needs due to significant sales growth [10][25] Q&A Session Summary Question: How much did price contribute to growth by segment? - The overall pricing benefit in Q3 was just under 3%, with EES at about 4%, CSS at 2%, and UBS at 1% [39] Question: Can you discuss the strength in EES outside of data centers? - EES saw growth across all operating groups, particularly in construction and OEM, driven by robust demand in infrastructure projects [40][42] Question: Are you seeing a crowd-out effect from AI and tech spending? - There is no observed crowd-out effect; EES growth is attributed to overall market outperformance [51][52] Question: What gives confidence in the return to growth for public power? - Public power is expected to return to growth in 2026, supported by improving customer order rates and inventory builds [109][110]

Core Insights - Calpine Corporation has entered into a 190-megawatt agreement with CyrusOne to support a new data center in Texas, expected to be operational by Q4 2026 [1][2] - The project represents a $1.2 billion infrastructure investment and aims to enhance economic growth and job creation in the region [2][5] - The new data center campus, named DFW10, will feature over 190,000 square feet in its first phase and will focus on sustainability and reliability [2][4] Company Overview - Calpine Corporation is the largest generator of electricity from natural gas and geothermal resources in the U.S., with over 27,000 megawatts of generation capacity across 79 facilities [6] - The company is positioned to benefit from trends such as the increasing need for dispatchable power plants and the abundant supply of clean natural gas [6] - Calpine's operational capabilities include delivering up to 400 megawatts to data centers in Bosque, Texas, enhancing its role as a strategic energy partner [5] Industry Context - CyrusOne is a leading global data center developer and operator, specializing in solutions for hyperscale and enterprise companies [8] - The partnership with Calpine aims to address the growing demand for data infrastructure driven by AI and other technologies [4][8] - The project emphasizes climate-neutral initiatives and grid reliability, aligning with the evolving digital needs of customers [2][4]

Company Overview - Nvidia is a global leader in high-performance computing and artificial intelligence, with a market capitalization of $4.00 trillion as of July 10, 2025 [4] - The company's revenue for the trailing twelve months (TTM) is $148.51 billion, with a net income of $76.77 billion and a dividend yield of 0.02% [3] - Nvidia's strategy focuses on innovation in GPU technology and AI platforms, targeting high-growth markets such as artificial intelligence, cloud computing, and autonomous systems [4][5] Financial Performance - Nvidia's stock closed at $164.10 on July 10, 2025, reflecting a one-year price change of 24.90%, outperforming the S&P 500 by 12.29 percentage points [2] - The company's forward price-to-earnings (P/E) ratio is 38.02, and it has a five-year revenue compound annual growth rate (CAGR) of 64.2% [2] Market Position and Strategy - Nvidia generates revenue primarily through the sale of advanced semiconductor hardware and related software, serving original equipment manufacturers, cloud service providers, automotive companies, and system builders globally [5][6] - The company has a robust ecosystem and deep expertise in accelerated computing, which contributes to its competitive edge across gaming, data center, and automotive sectors [4] Investment Insights - Andrew Hill Investment Advisors increased its position in Nvidia, reflecting a strategic focus on technology stocks with exposure to the AI ecosystem, with approximately one-third of its equity holdings in AI infrastructure [7] - Despite a 19% decline in Nvidia's stock in the first three months of 2025, it has since recovered strongly, being up more than 28% year-to-date [8] - The market sentiment has improved due to de-escalation in trade conflicts, allowing Nvidia to ramp up sales of compliant chips to China in the second half of the year [10]