Dolby Laboratories (NYSE:DLB) Issues Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Dolby Laboratories (NYSE:DLB) released its quarterly earnings data on Thursday. The electronics maker reported $1.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.99 by $0.07, FiscalAI reports. The company had revenue of $346.71 million during the quarter, compared to analysts’ expectations of $341.26 million. Dolby Laboratories had a net margin of 18.90% and a return on equity of 11.99%. The firm’s revenue for the quarter was down 2.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.14 earnings per share.

Here are the key takeaways from Dolby Laboratories’ conference call:

• Revenue was $347 million and non‑GAAP EPS was $1.06, both above the high end of guidance for Q1, helped by earlier‑than‑expected deals and a $7 million favorable true‑up.
• Dolby raised full‑year guidance to $1.4B–$1.45B revenue and non‑GAAP EPS to $4.30–$4.45, with licensing now expected at $1.295B–$1.345B.
• Automotive is a major growth driver—Dolby now has partnerships with over 35 OEMs, announced Qualcomm Gen5 integration, and saw Dolby Atmos/Vision launches from Mahindra and Hyundai.
• Dolby Vision 2 showed strong CES reception and streaming/social momentum (Peacock, Canal+ launch partners; Meta expanded to Facebook; Douyin Android rollout), with first Dolby Vision 2 TVs expected by year‑end, expanding TV and mobile opportunities.
• The company took a $10 million restructuring charge and flagged potential headwinds from memory pricing and expected declines in foundational/PC/CE end markets, creating near‑term risks to growth.

Dolby Laboratories Stock Up 1.1%

Shares of Dolby Laboratories stock traded up $0.68 during trading hours on Friday, reaching $63.71. 552,425 shares of the company’s stock were exchanged, compared to its average volume of 745,711. The business has a fifty day moving average of $65.14 and a two-hundred day moving average of $68.95. The company has a market capitalization of $6.08 billion, a P/E ratio of 24.20 and a beta of 0.88. Dolby Laboratories has a 1 year low of $60.14 and a 1 year high of $85.49.

Dolby Laboratories Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 18th. Shareholders of record on Tuesday, February 10th will be paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, February 10th. Dolby Laboratories’s payout ratio is 54.75%.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on DLB. Wall Street Zen upgraded Dolby Laboratories from a “hold” rating to a “buy” rating in a research note on Monday, January 5th. Weiss Ratings restated a “hold (c-)” rating on shares of Dolby Laboratories in a research report on Monday, December 29th. Barrington Research reduced their target price on Dolby Laboratories from $95.00 to $90.00 and set an “outperform” rating for the company in a research note on Monday. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $85.00 price target on shares of Dolby Laboratories in a research note on Friday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $90.75.

Insider Buying and Selling at Dolby Laboratories

In other news, SVP Shriram Revankar sold 3,000 shares of the company’s stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $65.55, for a total value of $196,650.00. Following the completion of the sale, the senior vice president directly owned 67,435 shares in the company, valued at $4,420,364.25. This represents a 4.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Kevin J. Yeaman sold 36,699 shares of Dolby Laboratories stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $66.91, for a total value of $2,455,530.09. Following the transaction, the chief executive officer owned 114,725 shares in the company, valued at approximately $7,676,249.75. The trade was a 24.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 137,120 shares of company stock valued at $9,184,809. Insiders own 37.93% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of DLB. State Street Corp grew its holdings in shares of Dolby Laboratories by 8.7% in the second quarter. State Street Corp now owns 2,261,059 shares of the electronics maker’s stock valued at $167,906,000 after purchasing an additional 180,072 shares during the period. AQR Capital Management LLC boosted its holdings in Dolby Laboratories by 51.8% in the 2nd quarter. AQR Capital Management LLC now owns 1,736,260 shares of the electronics maker’s stock valued at $128,935,000 after purchasing an additional 592,282 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Dolby Laboratories by 8.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,149,927 shares of the electronics maker’s stock valued at $83,220,000 after buying an additional 87,202 shares during the period. Squarepoint Ops LLC grew its stake in shares of Dolby Laboratories by 37.2% in the 3rd quarter. Squarepoint Ops LLC now owns 516,700 shares of the electronics maker’s stock valued at $37,394,000 after buying an additional 140,201 shares during the period. Finally, Bank of America Corp DE increased its holdings in shares of Dolby Laboratories by 3.1% during the 3rd quarter. Bank of America Corp DE now owns 511,891 shares of the electronics maker’s stock worth $37,046,000 after buying an additional 15,237 shares during the last quarter. Hedge funds and other institutional investors own 58.56% of the company’s stock.

Key Stories Impacting Dolby Laboratories

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

• Positive Sentiment: Company raised guidance well above Street estimates — Dolby updated FY‑2026 EPS and revenue guidance (FY EPS 4.30–4.45 vs. consensus ~3.79; Q2 EPS and revenue guidance also above estimates), which supports upside to forward earnings expectations. TipRanks: Dolby Reports Q1 Results and Outlook
• Positive Sentiment: Q1 beat consensus on revenue and EPS on a headline basis — reported revenue (~$346.7M) and non‑GAAP EPS (~$1.06) topped estimates, showing near‑term operational resilience. Zacks: Q1 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Dividend declared — quarterly cash dividend of $0.36/share (ex‑dividend Feb 10), which supports income-minded holders and signals steady capital return policy. (Company release and investor materials.)
• Positive Sentiment: Analyst support — Rosenblatt reaffirmed a Buy and $85 price target, underscoring analyst conviction in upside vs. current levels. Benzinga: Rosenblatt Reaffirms Buy
• Neutral Sentiment: Company commentary and transcripts available — management presented a confident tone on market position during the earnings call; full transcript and press release provide detail for investors doing due diligence. PR Newswire: Q1 Financial Results Seeking Alpha: Earnings Call Transcript
• Neutral Sentiment: Analyst commentary/upgrades are mixed — some outlets call the quarter “solid” and note improved valuation after results; useful for longer‑term thesis rather than immediate price action. Seeking Alpha: Solid Q1 — Upgrade
• Negative Sentiment: Revenue fell year‑over‑year and licensing weakness drove investor concern — despite the beats, total revenue declined YoY and licensing trends were cited as a drag, which pressured sentiment after the release. Zacks: Sales Fall Y/Y, Licensing Weakness
• Negative Sentiment: Profitability and cash‑flow metrics showed pressure in the quarter — third‑party summaries highlighted operating profit, net income and operating cash flow declines that amplify near‑term risk, contributing to a roughly 3% after‑hours selloff. QuiverQuant: Details on Profitability and Cash Flow
• Negative Sentiment: Insider selling and mixed institutional flows noted in data services — some investors may interpret recent insider sales and portfolio reallocations as a cautionary sign. QuiverQuant: Insider & Institutional Activity

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.