Dolby Laboratories (NYSE:DLB – Get Free Report) posted its quarterly earnings data on Thursday. The electronics maker reported $0.69 earnings per share for the quarter, topping analysts’ consensus estimates of $0.67 by $0.02, FiscalAI reports. The business had revenue of $305.00 million for the quarter, compared to analyst estimates of $311.96 million. Dolby Laboratories had a return on equity of 11.06% and a net margin of 16.70%.The company’s revenue was down 3.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.78 earnings per share. Dolby Laboratories updated its FY 2026 guidance to 4.250-4.400 EPS and its Q4 2026 guidance to 1.130-1.280 EPS.
Here are the key takeaways from Dolby Laboratories’ conference call:
- Q4 revenue is expected to grow 23% year over year at the midpoint, reaching $362 million–$392 million, driven by a large Meta video-distribution deal, increased Dolby Atmos adoption in autos, wearables, and favorable minimum-volume-commitment timing.
- Dolby’s Video Distribution Program gained major licensees Meta and Alibaba, bringing the pool to 45 licensors and strengthening management’s confidence in reaching its goal of generating 10% of revenue from content partners by fiscal 2028.
- Automotive adoption continues to expand, with more than 40 OEM agreements and new launches from Volkswagen, Buick, and Google’s Android Auto partners; management said auto is Dolby’s fastest-growing end market and may be reported separately once it reaches 10% of licensing revenue.
- Fiscal 2026 revenue guidance was narrowed to $1.41 billion–$1.44 billion, while non-GAAP EPS is expected at $4.25–$4.40; the company is targeting approximately 100 basis points of operating-margin improvement and authorized an additional $350 million for share repurchases.
- Management is monitoring elevated memory costs, which could pressure mobile and PC unit shipments and product launches, although the company expects growth in video distribution, automotive, and wearables to offset part of the impact.
Dolby Laboratories Stock Performance
Shares of NYSE:DLB traded up $7.00 on Friday, hitting $58.78. 1,792,829 shares of the company’s stock were exchanged, compared to its average volume of 864,388. Dolby Laboratories has a 1-year low of $48.26 and a 1-year high of $75.80. The company has a market capitalization of $5.56 billion, a PE ratio of 25.01 and a beta of 0.81. The firm’s 50-day moving average is $52.29 and its 200 day moving average is $58.58.
Dolby Laboratories Announces Dividend
Insiders Place Their Bets
In other Dolby Laboratories news, CFO Robert J. Park sold 4,895 shares of the firm’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $56.68, for a total transaction of $277,448.60. Following the sale, the chief financial officer owned 81,490 shares of the company’s stock, valued at approximately $4,618,853.20. This trade represents a 5.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Shriram Revankar sold 3,000 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $54.90, for a total transaction of $164,700.00. Following the sale, the senior vice president owned 80,603 shares of the company’s stock, valued at $4,425,104.70. This represents a 3.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 47,458 shares of company stock worth $2,639,537 in the last three months. 37.93% of the stock is owned by company insiders.
Institutional Investors Weigh In On Dolby Laboratories
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Boothbay Fund Management LLC boosted its stake in Dolby Laboratories by 4.1% in the second quarter. Boothbay Fund Management LLC now owns 4,020 shares of the electronics maker’s stock valued at $299,000 after acquiring an additional 157 shares in the last quarter. Raymond James Financial Inc. lifted its holdings in shares of Dolby Laboratories by 1.0% in the 2nd quarter. Raymond James Financial Inc. now owns 24,344 shares of the electronics maker’s stock valued at $1,808,000 after purchasing an additional 235 shares during the last quarter. Cresset Asset Management LLC boosted its position in shares of Dolby Laboratories by 10.7% in the 3rd quarter. Cresset Asset Management LLC now owns 2,991 shares of the electronics maker’s stock valued at $216,000 after purchasing an additional 290 shares during the period. US Bancorp DE boosted its position in shares of Dolby Laboratories by 31.3% in the 3rd quarter. US Bancorp DE now owns 1,429 shares of the electronics maker’s stock valued at $103,000 after purchasing an additional 341 shares during the period. Finally, Cetera Investment Advisers grew its stake in Dolby Laboratories by 7.8% during the 4th quarter. Cetera Investment Advisers now owns 5,783 shares of the electronics maker’s stock worth $371,000 after buying an additional 418 shares during the last quarter. 58.56% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In
Several research analysts recently commented on the company. Wall Street Zen cut Dolby Laboratories from a “buy” rating to a “hold” rating in a research note on Saturday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Dolby Laboratories in a research note on Wednesday, June 24th. Barrington Research reissued an “outperform” rating and set a $90.00 price objective on shares of Dolby Laboratories in a research report on Monday, June 15th. Finally, Rosenblatt Securities restated a “buy” rating and set a $85.00 target price on shares of Dolby Laboratories in a research note on Friday. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $90.75.
Read Our Latest Research Report on Dolby Laboratories
Dolby Laboratories News Summary
Here are the key news stories impacting Dolby Laboratories this week:
- Positive Sentiment: Adjusted earnings beat expectations: Dolby reported fiscal third-quarter adjusted EPS of $0.69, above the $0.67 consensus estimate. Lower operating expenses helped offset weaker revenue. Dolby’s Q3 Earnings Beat Estimates on Lower Operating Expenses
- Positive Sentiment: Upbeat forward outlook: Fiscal fourth-quarter revenue guidance of $362 million to $392 million exceeded the roughly $351 million analyst estimate, while full-year EPS guidance of $4.25 to $4.40 topped the $4.10 consensus. Management cited momentum in video licensing, automotive applications, and new device categories. Dolby Laboratories Reports Third Quarter 2026 Financial Results
- Positive Sentiment: $350 million stock-repurchase authorization: Dolby’s board approved a plan to repurchase up to 7% of outstanding shares, signaling management’s view that the stock may be undervalued and potentially supporting per-share results. Dolby Laboratories Share Repurchase Plan
- Positive Sentiment: Dividend and analyst support: Dolby declared a quarterly dividend of $0.36 per share, representing an approximate 2.5% annualized yield. Rosenblatt Securities reaffirmed its Buy rating and set an $85 price target, well above the recent trading level. Dolby Laboratories Dividend Signals Confidence
- Neutral Sentiment: Cash generation remained strong: Operating cash flow rose to $167.5 million, and Dolby ended the quarter with $669.4 million in cash, providing flexibility for buybacks, dividends, and investment.
- Negative Sentiment: Revenue and reported profitability declined: Third-quarter revenue fell 3.3% year over year to $305 million and missed estimates near $312 million. Reported net income and diluted GAAP EPS also declined from the prior year, reflecting softer device sales and continued pressure in some business areas. Dolby Laboratories Fiscal Q3 Adjusted Earnings, Revenue Fall
Dolby Laboratories declared that its board has initiated a stock buyback program on Thursday, July 30th that allows the company to buyback $350.00 million in shares. This buyback authorization allows the electronics maker to purchase up to 7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.
Dolby Laboratories Company Profile
Dolby Laboratories, Inc is a global leader in audio and imaging technologies, specializing in the development, licensing and deployment of solutions that enhance entertainment and communications experiences. The company’s core business revolves around creating advanced audio codecs, noise reduction systems and spatial sound technologies for a wide range of applications, including cinema, broadcast, gaming, streaming and personal devices. Dolby’s licensing model enables consumer electronics manufacturers, content creators and service providers to integrate its technologies into products such as televisions, smartphones, home theater systems and set-top boxes.
Among its flagship innovations are Dolby Atmos, an immersive audio format that delivers three-dimensional soundscapes for theaters and home systems; Dolby Digital and Dolby Digital Plus, widely adopted audio compression formats for broadcast and streaming; and Dolby Vision, a high-dynamic-range imaging technology that expands color, contrast and brightness in displays.
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