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

Dolby Laboratories (NYSE:DLB) issued an update on its FY 2026 earnings guidance on Thursday. The company provided 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.

Dolby Laboratories Trading Up 13.5%

Shares of Dolby Laboratories stock traded up $7.00 during trading hours on Friday, reaching $58.78. The stock had a trading volume of 1,790,281 shares, compared to its average volume of 816,102. The stock’s 50 day moving average is $52.21 and its 200 day moving average is $58.58. Dolby Laboratories has a twelve month low of $48.26 and a twelve month high of $75.80. The firm has a market capitalization of $5.56 billion, a PE ratio of 23.23 and a beta of 0.81.

Dolby Laboratories (NYSE:DLB) last posted its earnings results on Thursday, July 30th. The electronics maker reported $0.69 EPS 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 company’s quarterly revenue was down 3.3% on a year-over-year basis. During the same period last 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, sell-side analysts predict that Dolby Laboratories will post 3.21 earnings per share for the current year.

Dolby Laboratories Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Tuesday, August 11th will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Tuesday, August 11th. Dolby Laboratories’s dividend payout ratio (DPR) is presently 56.92%.

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

Wall Street Analyst Weigh In

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

Insider Transactions at Dolby Laboratories

In related news, 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 completion of the sale, the senior vice president directly owned 80,603 shares in the company, valued at approximately $4,425,104.70. The trade was a 3.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP John D. Couling sold 7,667 shares of the stock in a transaction on Wednesday, July 1st. The shares were 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 represents a 6.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 47,458 shares of company stock valued at $2,639,537 in the last 90 days. Corporate insiders own 37.93% of the company’s stock.

Trending Headlines about Dolby Laboratories

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

• Positive Sentiment: Dolby reported fiscal third-quarter adjusted EPS of $0.69, exceeding the $0.67 consensus estimate, helped by lower operating expenses. Management projected strong fourth-quarter growth driven by video licensing, automotive applications, and new device categories. Dolby’s Q3 Earnings Beat Estimates on Lower Operating Expenses
• Positive Sentiment: Fourth-quarter revenue guidance of $362 million to $392 million is above the roughly $351 million analyst estimate, while full-year EPS guidance of $4.25 to $4.40 is ahead of the $4.10 consensus. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Positive Sentiment: The board authorized a $350 million share-repurchase program, potentially covering up to 7% of outstanding shares. The buyback may support per-share results and signals management’s view that the stock is undervalued.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating and $85 price target, implying substantial upside from recent trading levels. Rosenblatt Securities Rating
• Neutral Sentiment: Dolby declared a quarterly dividend of $0.36 per share, payable August 19 to shareholders of record August 11, representing an annualized yield of approximately 2.5%.
• Negative Sentiment: Third-quarter revenue fell 3.3% year over year to $305 million and missed estimates near $312 million. Adjusted EPS also declined from $0.78 a year earlier, indicating continued near-term pressure despite the earnings beat. Dolby Laboratories Fiscal Q3 Adjusted Earnings, Revenue Fall
• Negative Sentiment: Recent insider activity was entirely composed of sales, with multiple executives selling shares over the past six months. This may weigh modestly on investor sentiment, although insider transactions do not necessarily indicate a change in business outlook.

Hedge Funds Weigh In On Dolby Laboratories

Several hedge funds and other institutional investors have recently modified their holdings of the business. Perbak Capital Partners LLP grew its position in shares of Dolby Laboratories by 57.9% in the third quarter. Perbak Capital Partners LLP now owns 10,641 shares of the electronics maker’s stock valued at $770,000 after purchasing an additional 3,904 shares in the last quarter. Raiffeisen Bank International AG acquired a new position in Dolby Laboratories during the fourth quarter worth $611,000. Landscape Capital Management L.L.C. purchased a new stake in Dolby Laboratories in the 4th quarter valued at $550,000. iSAM Funds UK Ltd increased its stake in shares of Dolby Laboratories by 761.5% in the 4th quarter. iSAM Funds UK Ltd now owns 8,124 shares of the electronics maker’s stock worth $522,000 after acquiring an additional 7,181 shares during the last quarter. Finally, EntryPoint Capital LLC raised its holdings in shares of Dolby Laboratories by 56.5% during the 4th quarter. EntryPoint Capital LLC now owns 6,518 shares of the electronics maker’s stock worth $419,000 after acquiring an additional 2,352 shares during the period. 58.56% of the stock is owned by hedge funds and other institutional investors.

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.