Dolby Laboratories (NYSE:DLB) Issues FY 2026 Earnings Guidance

Dolby Laboratories (NYSE:DLB) issued an update on its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 4.250-4.400 for the period, compared to the consensus EPS estimate of 4.100. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.4 billion. Dolby Laboratories also updated its Q4 2026 guidance to 1.130-1.280 EPS.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on DLB shares. Weiss Ratings restated a “hold (c-)” rating on shares of Dolby Laboratories in a research note on Wednesday, June 24th. Barrington Research reiterated an “outperform” rating and issued a $90.00 price target on shares of Dolby Laboratories in a research note on Monday, June 15th. Wall Street Zen raised shares of Dolby Laboratories from a “hold” rating to a “buy” rating in a report on Saturday, May 30th. Finally, Rosenblatt Securities restated a “buy” rating and set a $85.00 price objective on shares of Dolby Laboratories in a research report on Thursday, June 11th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Dolby Laboratories currently has an average rating of “Moderate Buy” and an average price target of $90.75.

Dolby Laboratories Stock Performance

Shares of NYSE DLB traded down $0.85 during trading on Thursday, hitting $51.69. The company had a trading volume of 1,149,996 shares, compared to its average volume of 876,448. The stock has a 50 day simple moving average of $52.21 and a 200 day simple moving average of $58.58. Dolby Laboratories has a 12 month low of $48.26 and a 12 month high of $75.80. The firm has a market capitalization of $4.89 billion, a P/E ratio of 20.43 and a beta of 0.81.

Dolby Laboratories (NYSE:DLB) last posted its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.67 by $0.02. The firm had revenue of $305.00 million for the quarter, compared to analysts’ expectations of $311.96 million. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.The business’s quarterly revenue was down 3.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.78 EPS. Dolby Laboratories has set its FY 2026 guidance at 4.250-4.400 EPS and its Q4 2026 guidance at 1.130-1.280 EPS. As a group, analysts predict that Dolby Laboratories will post 3.21 EPS for the current year.

Dolby Laboratories announced that its board has approved a share repurchase program on Thursday, July 30th that permits the company to buyback $350.00 million in outstanding shares. This buyback authorization permits the electronics maker to reacquire up to 7% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other news, CFO Robert J. Park sold 4,895 shares of the business’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $56.68, for a total value of $277,448.60. Following the transaction, the chief financial officer directly owned 81,490 shares in the company, valued at $4,618,853.20. The trade was a 5.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP John D. Couling sold 7,667 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.20, for a total value of $407,884.40. Following the completion of the transaction, the senior vice president directly owned 118,727 shares of the company’s stock, valued at approximately $6,316,276.40. This trade represents a 6.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 47,458 shares of company stock worth $2,639,537. 37.93% of the stock is currently owned by corporate insiders.

Key Stories Impacting Dolby Laboratories

Here are the key news stories impacting Dolby Laboratories this week:

• Positive Sentiment: Raised earnings outlook: Dolby guided fiscal 2026 adjusted EPS to $4.25-$4.40, above the $4.10 consensus. Fourth-quarter revenue guidance of $362 million-$392 million also exceeded estimates of $351.1 million, suggesting management expects stronger near-term performance. Dolby Laboratories Reports Q3 Results, Boosts Share Repurchases
• Positive Sentiment: Adjusted EPS beat expectations: Third-quarter adjusted earnings were $0.69 per share, topping the $0.67 consensus, while operating cash flow increased to $167.5 million. Dolby also announced an expansion of its share-repurchase authorization, which may support per-share value. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Mixed investor positioning: Institutional activity was divided, with 184 investors adding shares and 192 reducing positions during the latest quarter. Recent analyst price targets remained well above the current trading level, but the limited number of targets reduces their significance.
• Negative Sentiment: Revenue missed and declined: Third-quarter revenue was $305 million, below estimates ranging from roughly $312 million to $315 million and down 3.3% year over year. This suggests continued pressure in Dolby’s core licensing and technology businesses. Dolby Laboratories Reports Q3 Earnings
• Negative Sentiment: Profitability weakened: GAAP net income fell to $28.6 million and diluted EPS to $0.30 from the prior year, while operating profit declined to $34.3 million. In addition, reported insider transactions showed selling but no purchases over the past six months, a potential sentiment headwind.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC raised its position in shares of Dolby Laboratories by 51.8% during the second quarter. AQR Capital Management LLC now owns 1,736,260 shares of the electronics maker’s stock valued at $128,935,000 after buying an additional 592,282 shares during the last quarter. Alyeska Investment Group L.P. bought a new position in shares of Dolby Laboratories during the fourth quarter worth $23,477,000. First Trust Advisors LP grew its stake in Dolby Laboratories by 23.8% during the fourth quarter. First Trust Advisors LP now owns 1,880,528 shares of the electronics maker’s stock valued at $120,768,000 after acquiring an additional 361,871 shares in the last quarter. Voloridge Investment Management LLC grew its stake in Dolby Laboratories by 2,017.9% during the fourth quarter. Voloridge Investment Management LLC now owns 325,499 shares of the electronics maker’s stock valued at $20,904,000 after acquiring an additional 310,130 shares in the last quarter. Finally, Snyder Capital Management L P grew its stake in Dolby Laboratories by 24.4% during the fourth quarter. Snyder Capital Management L P now owns 1,427,093 shares of the electronics maker’s stock valued at $91,648,000 after acquiring an additional 279,743 shares in the last quarter. 58.56% of the stock is owned by hedge funds and other institutional investors.

About Dolby Laboratories

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.