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 morning. The company provided earnings per share (EPS) guidance of 1.130-1.280 for the period, compared to the consensus earnings per share 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 Trading Down 1.6%

NYSE:DLB traded down $0.85 during mid-day trading on Thursday, hitting $51.69. 1,149,996 shares of the company’s stock traded hands, compared to its average volume of 876,448. The firm has a market capitalization of $4.89 billion, a price-to-earnings ratio of 20.43 and a beta of 0.81. The firm has a 50 day moving average of $52.21 and a two-hundred day moving average of $58.58. Dolby Laboratories has a 12 month low of $48.26 and a 12 month high of $75.80.

Dolby Laboratories (NYSE:DLB) last issued its quarterly earnings results on Thursday, July 30th. The electronics maker reported $0.69 EPS for the quarter, topping analysts’ consensus estimates of $0.67 by $0.02. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.The company had revenue of $305.00 million during the quarter, compared to analyst estimates of $311.96 million. During the same period in the previous year, the company earned $0.78 earnings per share. The company’s quarterly revenue was down 3.3% compared to the same quarter last year. 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, equities research analysts expect that Dolby Laboratories will post 3.21 earnings per share for the current year.

Dolby Laboratories declared that its board has approved a stock buyback plan on Thursday, July 30th that authorizes the company to buyback $350.00 million in shares. This buyback authorization authorizes the electronics maker to purchase up to 7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of brokerages have weighed in on DLB. Rosenblatt Securities reissued a “buy” rating and issued a $85.00 price target on shares of Dolby Laboratories in a report on Thursday, June 11th. Wall Street Zen raised shares of Dolby Laboratories from a “hold” rating to a “buy” rating in a research report on Saturday, May 30th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Dolby Laboratories in a research note on Wednesday, June 24th. Finally, Barrington Research reissued an “outperform” rating and set a $90.00 target price on shares of Dolby Laboratories in a research report on Monday, June 15th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Dolby Laboratories currently has a consensus rating of “Moderate Buy” and an average target price of $90.75.

Insider Activity

In other Dolby Laboratories news, CFO Robert J. Park sold 4,895 shares of the business’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $56.68, for a total value of $277,448.60. Following the transaction, the chief financial officer directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CMO Todd Pendleton sold 11,876 shares of the company’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $54.55, for a total transaction of $647,835.80. Following the sale, the chief marketing officer directly owned 41,480 shares in the company, valued at $2,262,734. This represents a 22.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 47,458 shares of company stock worth $2,639,537. Company insiders own 37.93% of the company’s stock.

Key Stories Impacting Dolby Laboratories

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

• Positive Sentiment: Raised earnings outlook: Dolby guided fiscal 2026 adjusted EPS to $4.25-$4.40, above the $4.10 consensus. Fourth-quarter revenue guidance of $362 million-$392 million also exceeded estimates of $351.1 million, suggesting management expects stronger near-term performance. Dolby Laboratories Reports Q3 Results, Boosts Share Repurchases
• Positive Sentiment: Adjusted EPS beat expectations: Third-quarter adjusted earnings were $0.69 per share, topping the $0.67 consensus, while operating cash flow increased to $167.5 million. Dolby also announced an expansion of its share-repurchase authorization, which may support per-share value. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Mixed investor positioning: Institutional activity was divided, with 184 investors adding shares and 192 reducing positions during the latest quarter. Recent analyst price targets remained well above the current trading level, but the limited number of targets reduces their significance.
• Negative Sentiment: Revenue missed and declined: Third-quarter revenue was $305 million, below estimates ranging from roughly $312 million to $315 million and down 3.3% year over year. This suggests continued pressure in Dolby’s core licensing and technology businesses. Dolby Laboratories Reports Q3 Earnings
• Negative Sentiment: Profitability weakened: GAAP net income fell to $28.6 million and diluted EPS to $0.30 from the prior year, while operating profit declined to $34.3 million. In addition, reported insider transactions showed selling but no purchases over the past six months, a potential sentiment headwind.

Institutional Investors Weigh In On Dolby Laboratories

Large investors have recently bought and sold shares of the business. Aquatic Capital Management LLC acquired a new stake in Dolby Laboratories during the 3rd quarter valued at $56,000. iSAM Funds UK Ltd bought a new stake in shares of Dolby Laboratories during the third quarter worth $68,000. Quarry LP grew its holdings in shares of Dolby Laboratories by 1,486.7% during the fourth quarter. Quarry LP now owns 1,190 shares of the electronics maker’s stock worth $76,000 after purchasing an additional 1,115 shares during the last quarter. Advisory Services Network LLC acquired a new stake in shares of Dolby Laboratories in the third quarter valued at $102,000. Finally, US Bancorp DE increased its stake in shares of Dolby Laboratories by 31.3% in the third quarter. US Bancorp DE now owns 1,429 shares of the electronics maker’s stock valued at $103,000 after buying an additional 341 shares in the last quarter. 58.56% of the stock is currently owned by 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.