Dolby Laboratories (NYSE:DLB) Issues Q4 2026 Earnings Guidance

Dolby Laboratories (NYSE:DLB) issued an update on its fourth quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.130-1.280 for the period, compared to the consensus EPS estimate of 1.160. The company issued revenue guidance of $362.0 million-$392.0 million, compared to the consensus revenue estimate of $351.1 million. Dolby Laboratories also updated its FY 2026 guidance to 4.250-4.400 EPS.

Dolby Laboratories Price Performance

Shares of NYSE:DLB traded up $7.00 during trading on Friday, reaching $58.78. 1,792,829 shares of the company were exchanged, compared to its average volume of 864,388. The business’s fifty day simple moving average is $52.29 and its 200-day simple moving average is $58.58. 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 PE ratio of 25.01 and a beta of 0.81.

Dolby Laboratories (NYSE:DLB) last issued its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.02. 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 16.70% and a return on equity of 11.06%. Dolby Laboratories’s revenue was down 3.3% compared to the same quarter last year. During the same period last year, the company posted $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 anticipate that Dolby Laboratories will post 3.21 EPS for the current fiscal year.

Dolby Laboratories Announces Dividend

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

Dolby Laboratories declared that its Board of Directors has approved a stock buyback plan on Thursday, July 30th that authorizes the company to repurchase $350.00 million in shares. This repurchase authorization authorizes the electronics maker to repurchase up to 7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on DLB shares. Wall Street Zen lowered shares of Dolby Laboratories from a “buy” rating to a “hold” rating in a research note on Saturday. Rosenblatt Securities reaffirmed a “buy” rating and set a $85.00 price target on shares of Dolby Laboratories in a research report on Friday. Barrington Research reissued an “outperform” rating and issued a $90.00 price objective 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 note on Wednesday, June 24th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, Dolby Laboratories 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 Dolby Laboratories news, CMO Todd Pendleton sold 11,876 shares of Dolby Laboratories stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $54.55, for a total value of $647,835.80. Following the sale, the chief marketing officer owned 41,480 shares in the company, valued at $2,262,734. The trade was a 22.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP John D. Couling sold 7,667 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $53.20, for a total value of $407,884.40. Following the transaction, the senior vice president owned 118,727 shares in the company, valued at $6,316,276.40. This trade represents a 6.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 47,458 shares of company stock worth $2,639,537 in the last 90 days. 37.93% of the stock is currently owned by insiders.

Key Stories Impacting 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

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in DLB. Brevan Howard Capital Management LP acquired a new position in shares of Dolby Laboratories during the third quarter worth $316,000. Federation des caisses Desjardins du Quebec raised its stake in Dolby Laboratories by 18.2% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 4,839 shares of the electronics maker’s stock valued at $311,000 after buying an additional 744 shares in the last quarter. Boothbay Fund Management LLC lifted its holdings in Dolby Laboratories by 4.1% during the 2nd quarter. Boothbay Fund Management LLC now owns 4,020 shares of the electronics maker’s stock worth $299,000 after buying an additional 157 shares during the last quarter. Fred Alger Management LLC lifted its holdings in Dolby Laboratories by 14.0% during the 4th quarter. Fred Alger Management LLC now owns 4,551 shares of the electronics maker’s stock worth $292,000 after buying an additional 560 shares during the last quarter. Finally, Jane Street Group LLC acquired a new position in shares of Dolby Laboratories during the 2nd quarter worth about $239,000. Hedge funds and other institutional investors own 58.56% of the company’s stock.

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.