Dolby Laboratories (NYSE:DLB) Issues Quarterly Earnings Results

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

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 Price Performance

Shares of NYSE DLB traded up $0.64 during trading hours on Friday, hitting $63.67. 473,631 shares of the stock were exchanged, compared to its average volume of 742,444. Dolby Laboratories has a one year low of $60.14 and a one year high of $85.49. The company’s 50 day moving average is $65.14 and its 200 day moving average is $68.95. The firm has a market capitalization of $6.08 billion, a P/E ratio of 24.39 and a beta of 0.88.

Dolby Laboratories Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, February 18th. Stockholders 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 dividend yield of 2.3%. The ex-dividend date is Tuesday, February 10th. Dolby Laboratories’s dividend payout ratio is 54.75%.

Dolby Laboratories News Summary

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

• Positive Sentiment: Company raised FY2026 and Q2 guidance well above Street expectations — management set FY26 EPS of $4.30–$4.45 (consensus ~3.79) and Q2 EPS of $1.29–$1.44 (above consensus). This materially improves the outlook and is a primary driver of the stock move. PR Newswire: Q1 2026 Results
• Positive Sentiment: Q1 results beat consensus on revenue and on the headline EPS figure cited by some outlets — revenue $346.7M vs. est. ~$341M and reported EPS that topped the consensus used in some summaries. The top-line beat plus the guide lift supports multiple quarters of better-than-expected performance. Press Release / Earnings PDF
• Positive Sentiment: Board declared a $0.36 quarterly dividend (ex-div Feb 10; pay Feb 18), supporting income-focused investors and reflecting confidence in cash generation. (Dividend yield ~2.3% as reported.)
• Positive Sentiment: Rosenblatt reaffirmed a Buy rating with an $85 price target (~mid- to high?teens to 30%+ upside from current levels), adding analyst support to the rally. Benzinga: Rosenblatt Rating
• Neutral Sentiment: Earnings call transcript and analyst write-ups are available for deeper detail on segment dynamics, licensing vs. product revenue mix, and channel timing — useful for reforecasting models. Seeking Alpha: Call Transcript
• Negative Sentiment: Some coverage flagged mixed underlying profitability and cash-flow metrics (higher cost of sales, lower operating profit vs. year-ago and reported negative operating cash flow in some datasets), plus continued insider selling. Those factors increase execution risk if growth decelerates. QuiverQuant: Profitability & Cash Flow
• Negative Sentiment: Earlier analyst downgrades and a recent 1?year low cited in some outlets show there remains skepticism among some investors; valuation and execution will be watched closely after the guidance reset. AmericanBankingNews: Analyst Note

Analysts Set New Price Targets

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

Insider Transactions at Dolby Laboratories

In related news, EVP Mark Andrew Sherman sold 9,109 shares of the firm’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $66.73, for a total transaction of $607,843.57. Following the completion of the sale, the executive vice president directly owned 73,054 shares of the company’s stock, valued at $4,874,893.42. This trade represents a 11.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Kevin J. Yeaman sold 36,699 shares of the business’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $66.91, for a total transaction of $2,455,530.09. Following the completion of the transaction, the chief executive officer directly owned 114,725 shares of the company’s stock, valued at approximately $7,676,249.75. This represents a 24.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 137,120 shares of company stock valued at $9,184,809. 37.93% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dolby Laboratories

Institutional investors and hedge funds have recently made changes to their positions in the company. Aquatic Capital Management LLC acquired a new position in shares of Dolby Laboratories in the third quarter valued at approximately $56,000. iSAM Funds UK Ltd bought a new stake in Dolby Laboratories during the third quarter worth $68,000. Advisory Services Network LLC bought a new position in Dolby Laboratories during the third quarter worth about $102,000. US Bancorp DE lifted its holdings in Dolby Laboratories by 31.3% during the 3rd quarter. US Bancorp DE now owns 1,429 shares of the electronics maker’s stock valued at $103,000 after purchasing an additional 341 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of Dolby Laboratories by 273.3% during the second quarter. EverSource Wealth Advisors LLC now owns 2,598 shares of the electronics maker’s stock worth $193,000 after acquiring an additional 1,902 shares during the period. Institutional investors and hedge funds 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.