Dolby Laboratories (NYSE:DLB) Releases 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 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 Stock Up 13.5%

DLB traded up $7.00 during trading on Friday, hitting $58.78. 1,790,374 shares of the stock were exchanged, compared to its average volume of 820,085. The firm has a market capitalization of $5.56 billion, a P/E ratio of 23.23 and a beta of 0.81. Dolby Laboratories has a 1-year low of $48.26 and a 1-year high of $75.80. The stock has a fifty day moving average price of $52.21 and a two-hundred day moving average price of $58.58.

Dolby Laboratories (NYSE:DLB) last issued its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.67 by $0.02. The company had revenue of $305.00 million during 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 firm’s revenue for the quarter was down 3.3% on a year-over-year basis. During the same quarter in the previous year, the business 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. Analysts predict that Dolby Laboratories will post 3.21 EPS for the current year.

Dolby Laboratories Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Tuesday, August 11th will be given a $0.36 dividend. The ex-dividend date is Tuesday, August 11th. This represents a $1.44 annualized dividend and a yield of 2.4%. Dolby Laboratories’s dividend payout ratio is 56.92%.

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

Analysts Set New Price Targets

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

Insiders Place Their Bets

In other news, SVP Shriram Revankar sold 3,000 shares of the firm’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 value of $164,700.00. Following the completion of the sale, the senior vice president directly owned 80,603 shares of the company’s stock, valued at $4,425,104.70. This trade represents a 3.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Robert J. Park sold 4,895 shares of the business’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $56.68, for a total transaction of $277,448.60. Following the sale, the chief financial officer owned 81,490 shares in the company, valued at $4,618,853.20. The trade was a 5.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 47,458 shares of company stock valued at $2,639,537. Corporate insiders own 37.93% of the company’s stock.

Dolby Laboratories News Summary

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.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Boothbay Fund Management LLC purchased a new stake in shares of Dolby Laboratories during the 4th quarter worth approximately $274,000. Tidal Investments LLC purchased a new position in Dolby Laboratories in the 2nd quarter valued at approximately $264,000. Guggenheim Capital LLC purchased a new position in Dolby Laboratories in the 4th quarter valued at approximately $260,000. EP Wealth Advisors LLC acquired a new stake in Dolby Laboratories in the fourth quarter valued at $231,000. Finally, Cresset Asset Management LLC grew its holdings in Dolby Laboratories by 10.7% in the third quarter. Cresset Asset Management LLC now owns 2,991 shares of the electronics maker’s stock valued at $216,000 after purchasing an additional 290 shares during the last quarter. 58.56% of the stock is currently 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.