Dolby Laboratories (NYSE:DLB) Issues Earnings Results, Beats Expectations By $0.02 EPS

Dolby Laboratories (NYSE:DLB) issued its quarterly earnings data on Thursday. The electronics maker reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.02, FiscalAI reports. The company had revenue of $305.00 million for the quarter, compared to analyst estimates of $311.96 million. Dolby Laboratories had a net margin of 17.85% and a return on equity of 11.47%. The company’s revenue was down 3.3% on a year-over-year basis. During the same period in the prior year, the firm 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 Price Performance

DLB stock traded down $0.85 during midday trading on Thursday, reaching $51.69. 1,149,996 shares of the stock were exchanged, compared to its average volume of 876,448. The stock has a market capitalization of $4.89 billion, a PE ratio of 16.89 and a beta of 0.81. Dolby Laboratories has a 52 week low of $48.26 and a 52 week high of $75.80. The company has a fifty day moving average price of $52.25 and a 200 day moving average price of $58.67.

Insider Transactions at Dolby Laboratories

In other Dolby Laboratories news, CMO Todd Pendleton sold 11,876 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $54.55, for a total value of $647,835.80. Following the completion of the transaction, the chief marketing officer directly owned 41,480 shares in the company, valued at approximately $2,262,734. This represents a 22.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Robert J. Park sold 4,895 shares of Dolby Laboratories stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $56.68, for a total transaction of $277,448.60. Following the transaction, the chief financial officer owned 81,490 shares in the company, valued at approximately $4,618,853.20. This trade represents a 5.67% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 47,458 shares of company stock valued at $2,639,537. 37.93% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Dolby Laboratories

A number of hedge funds and other institutional investors have recently made changes to their positions in DLB. Royal Bank of Canada increased its position in Dolby Laboratories by 3.5% during the 1st quarter. Royal Bank of Canada now owns 68,367 shares of the electronics maker’s stock valued at $5,491,000 after purchasing an additional 2,298 shares during the period. Goldman Sachs Group Inc. raised its stake in Dolby Laboratories by 218.8% during the first quarter. Goldman Sachs Group Inc. now owns 249,574 shares of the electronics maker’s stock worth $20,043,000 after buying an additional 171,288 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Dolby Laboratories by 5.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 238,216 shares of the electronics maker’s stock worth $19,131,000 after buying an additional 12,598 shares during the last quarter. Focus Partners Wealth acquired a new position in Dolby Laboratories in the first quarter valued at $390,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in Dolby Laboratories by 273.3% in the second quarter. EverSource Wealth Advisors LLC now owns 2,598 shares of the electronics maker’s stock valued at $193,000 after buying an additional 1,902 shares during the period. 58.56% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

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

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.