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

Dolby Laboratories (NYSE:DLB) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 4.250-4.400 for the period, compared to the consensus earnings per share 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.

Analysts Set New Price Targets

DLB has been the subject of several recent research reports. Wall Street Zen cut Dolby Laboratories from a “buy” rating to a “hold” rating in a research report on Saturday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Dolby Laboratories in a research report on Wednesday, June 24th. Barrington Research reaffirmed an “outperform” rating and set a $90.00 price target on shares of Dolby Laboratories in a research note on Monday, June 15th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $85.00 price objective on shares of Dolby Laboratories in a report on Friday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $90.75.

Dolby Laboratories Stock Up 13.5%

Shares of DLB stock traded up $7.00 on Friday, reaching $58.78. The stock had a trading volume of 1,792,829 shares, compared to its average volume of 864,388. 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 $5.56 billion, a price-to-earnings ratio of 25.01 and a beta of 0.81. The firm’s 50-day moving average is $52.29 and its two-hundred day moving average is $58.58.

Dolby Laboratories (NYSE:DLB) last released its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 EPS for the quarter, beating the consensus estimate of $0.67 by $0.02. The firm had revenue of $305.00 million for the quarter, compared to the consensus estimate of $311.96 million. Dolby Laboratories had a net margin of 16.70% and a return on equity of 11.06%. The company’s quarterly revenue was down 3.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.78 earnings per share. 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. On average, sell-side analysts forecast that Dolby Laboratories will post 3.21 earnings per share for the current fiscal year.

Dolby Laboratories Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Tuesday, August 11th will be paid a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, August 11th. Dolby Laboratories’s payout ratio is 61.28%.

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

Insider Buying and Selling

In related news, SVP Shriram Revankar sold 3,000 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $54.90, for a total transaction of $164,700.00. Following the completion of the transaction, the senior vice president directly owned 80,603 shares in the company, valued at $4,425,104.70. This represents a 3.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Robert J. Park sold 4,895 shares of the 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 completion of the transaction, the chief financial officer directly owned 81,490 shares of the company’s stock, valued at approximately $4,618,853.20. The trade was a 5.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 47,458 shares of company stock worth $2,639,537 in the last ninety days. 37.93% of the stock is owned by company insiders.

Trending Headlines about Dolby Laboratories

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

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. State Street Corp raised its stake in Dolby Laboratories by 8.7% in the 2nd quarter. State Street Corp now owns 2,261,059 shares of the electronics maker’s stock valued at $167,906,000 after acquiring an additional 180,072 shares during the period. First Trust Advisors LP lifted its holdings in shares of Dolby Laboratories by 23.8% in the fourth quarter. First Trust Advisors LP now owns 1,880,528 shares of the electronics maker’s stock worth $120,768,000 after buying an additional 361,871 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of Dolby Laboratories by 51.8% in 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 acquiring an additional 592,282 shares during the period. Snyder Capital Management L P boosted its position in shares of Dolby Laboratories by 24.4% in 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 during the period. Finally, Dimensional Fund Advisors LP grew its stake in Dolby Laboratories by 7.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,237,572 shares of the electronics maker’s stock valued at $79,482,000 after acquiring an additional 87,645 shares in the last quarter. 58.56% of the stock is owned by institutional investors and hedge funds.

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.