Arm's quarterly revenue outlook meets expectations; data center business helps it withstand smartphone market downturn.

Arm's revenue outlook for the current fiscal quarter met analysts' expectations, indicating that the company's push into data center chips is helping it offset the impact of a slump in the smartphone market. Arm expects revenue of about $1.54 billion for the fiscal quarter ending in December. The average analyst estimate was $1.53 billion, with some forecasts close to $1.7 billion. Data center operators and their suppliers have rapidly increased spending on Arm chip designs and licenses. This surge in demand has helped offset the impact of the downturn in the smartphone industry. Smartphone chips have long been Arm's largest source of revenue. After the results were announced, Arm's stock fell in after-hours trading. As of Wednesday's close, the stock had risen more than 75% this year.