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

Dolby Laboratories (NYSE:DLB) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided earnings per share guidance of 4.300-4.450 for the period, compared to the consensus earnings per share estimate of 3.790. The company issued revenue guidance of $1.4 billion-$1.5 billion, compared to the consensus revenue estimate of $1.4 billion. Dolby Laboratories also updated its Q2 2026 guidance to 1.290-1.440 EPS.

Dolby Laboratories Price Performance

NYSE DLB opened at $62.89 on Friday. The company has a fifty day moving average of $65.14 and a two-hundred day moving average of $68.95. Dolby Laboratories has a 1 year low of $60.14 and a 1 year high of $89.66. The company has a market capitalization of $6.01 billion, a PE ratio of 23.91 and a beta of 0.88.

Dolby Laboratories (NYSE:DLB) last released its quarterly earnings results on Tuesday, November 18th. The electronics maker reported $0.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.70 by $0.29. The firm had revenue of $307.02 million for the quarter, compared to analyst estimates of $305.76 million. Dolby Laboratories had a return on equity of 11.99% and a net margin of 18.90%.The business’s revenue was up .7% on a year-over-year basis. During the same quarter last year, the company posted $0.61 earnings per share. Dolby Laboratories has set its FY 2026 guidance at 4.190-4.340 EPS and its Q1 2026 guidance at 0.790-0.940 EPS. On average, research analysts expect that Dolby Laboratories will post 2.94 earnings per share for the current year.

Dolby Laboratories Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Shareholders of record on Tuesday, December 2nd were given a dividend of $0.36 per share. The ex-dividend date was Tuesday, December 2nd. This is a positive change from Dolby Laboratories’s previous quarterly dividend of $0.33. This represents a $1.44 dividend on an annualized basis and a yield of 2.3%. Dolby Laboratories’s dividend payout ratio (DPR) is presently 54.75%.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Barrington Research dropped their price target on Dolby Laboratories from $95.00 to $90.00 and set an “outperform” rating for the company in a research report on Monday. Wall Street Zen upgraded shares of Dolby Laboratories from a “hold” rating to a “buy” rating in a report on Monday, January 5th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $85.00 price target on shares of Dolby Laboratories in a report on Thursday, January 22nd. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Dolby Laboratories in a research note on Monday, December 29th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Dolby Laboratories presently has a consensus rating of “Moderate Buy” and an average price target of $90.75.

Insider Activity

In other Dolby Laboratories news, CEO Kevin J. Yeaman sold 6,751 shares of Dolby Laboratories stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $67.24, for a total value of $453,937.24. Following the completion of the sale, the chief executive officer directly owned 98,377 shares of the company’s stock, valued at approximately $6,614,869.48. The trade was a 6.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Shriram Revankar sold 3,000 shares of the stock in a transaction 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 transaction, the senior vice president directly owned 67,435 shares in the company, valued at approximately $4,420,364.25. This represents a 4.26% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 137,120 shares of company stock valued at $9,184,809. 37.93% of the stock is owned by corporate insiders.

Key Dolby Laboratories News

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

• Positive Sentiment: Dolby raised FY‑2026 and Q2 guidance well above prior Street expectations — management now targets FY EPS roughly in the mid‑$4s and Q2 EPS of $1.29–$1.44, with revenue ranges above consensus. This is the main bullish catalyst supporting upside conviction. PR Newswire: Dolby Laboratories Reports First Quarter 2026 Financial Results
• Positive Sentiment: Q1 results beat headline estimates: revenue ~$346.7M and EPS $1.06 topped consensus, showing resilience in top‑line and headline profitability versus forecasts. Beating the print supported management’s confidence in the outlook. MarketBeat: Q1 results summary
• Positive Sentiment: Street reaction includes at least one analyst upgrade and commentary that Dolby’s valuation looks more attractive after the quarter, which can support positive analyst momentum and higher price targets. Seeking Alpha: Rating upgrade
• Neutral Sentiment: Management commentary and the earnings‑call transcript highlight confidence in content partnerships and product roadmaps; investors can review the call transcript/highlights for detail on customer wins, product mix and margin cadence. Yahoo Finance: Q1 highlights
• Negative Sentiment: Third‑party coverage flagged weaker operating profitability and cash‑flow metrics in the quarter (lower operating profit, declining operating cash flow in certain reports), which prompted some short‑term selling after the release. That mixed internal sizing of growth vs. margin pressure is weighing on the stock. QuiverQuant: Mixed metrics & stock reaction
• Negative Sentiment: Earlier analyst downgrades and a recent one‑year low callout have kept downward pressure on sentiment; investors sensitive to near‑term multiples or margin volatility may remain cautious. American Banking News: 1‑year low on downgrade

Hedge Funds Weigh In On Dolby Laboratories

Large investors have recently modified their holdings of the company. Advisory Services Network LLC acquired a new position in Dolby Laboratories during the 3rd quarter worth approximately $102,000. XTX Topco Ltd acquired a new position in shares of Dolby Laboratories during the third quarter worth $741,000. Verition Fund Management LLC lifted its position in shares of Dolby Laboratories by 172.4% during the third quarter. Verition Fund Management LLC now owns 35,409 shares of the electronics maker’s stock worth $2,563,000 after purchasing an additional 22,409 shares in the last quarter. Qube Research & Technologies Ltd boosted its stake in shares of Dolby Laboratories by 5.4% in the third quarter. Qube Research & Technologies Ltd now owns 474,159 shares of the electronics maker’s stock valued at $34,315,000 after purchasing an additional 24,506 shares during the period. Finally, Mercer Global Advisors Inc. ADV grew its holdings in Dolby Laboratories by 217.8% during the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 14,567 shares of the electronics maker’s stock valued at $1,054,000 after purchasing an additional 9,984 shares in the last quarter. 58.56% of the stock is currently 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.