Dolby Laboratories (NYSE:DLB) Issues Q3 2026 Earnings Guidance

Key Points

• Dolby issued Q3 2026 guidance well below Street expectations, forecasting EPS of $0.56–$0.71 versus the consensus of $0.92 and revenue of $295–$325 million versus the consensus $343.1 million.
• The company updated FY 2026 guidance to $4.30–$4.45 EPS, which contrasts with the article's cited average analyst forecast of $3.18, while the stock traded around $64.21 amid mixed analyst ratings and recent insider selling.

Dolby Laboratories (NYSE:DLB - Get Free Report) updated its third quarter 2026 earnings guidance on Thursday. The company provided EPS guidance of 0.560-0.710 for the period, compared to the consensus EPS estimate of 0.920. The company issued revenue guidance of $295.0 million-$325.0 million, compared to the consensus revenue estimate of $343.1 million. Dolby Laboratories also updated its FY 2026 guidance to 4.300-4.450 EPS.

Dolby Laboratories Price Performance

Shares of NYSE:DLB traded up $0.95 during midday trading on Thursday, reaching $64.21. The company's stock had a trading volume of 645,872 shares, compared to its average volume of 720,788. The company has a market capitalization of $6.13 billion, a P/E ratio of 25.89 and a beta of 0.86. Dolby Laboratories has a fifty-two week low of $57.62 and a fifty-two week high of $78.28. The business's fifty day simple moving average is $62.58 and its 200-day simple moving average is $64.56.

Dolby Laboratories (NYSE:DLB - Get Free Report) last announced its earnings results on Thursday, April 30th. The electronics maker reported $1.37 earnings per share for the quarter, topping analysts' consensus estimates of $1.31 by $0.06. Dolby Laboratories had a net margin of 17.97% and a return on equity of 11.50%. The company had revenue of $395.63 million during the quarter, compared to the consensus estimate of $385.80 million. Dolby Laboratories has set its FY 2026 guidance at 4.300-4.450 EPS and its Q3 2026 guidance at 0.560-0.710 EPS. On average, analysts forecast that Dolby Laboratories will post 3.18 earnings per share for the current fiscal year.

Analysts Set New Price Targets

DLB has been the topic of a number of recent research reports. Rosenblatt Securities reiterated a "buy" rating and issued a $85.00 price objective on shares of Dolby Laboratories in a research report on Friday, January 30th. Barrington Research reissued an "outperform" rating and issued a $90.00 price target on shares of Dolby Laboratories in a research note on Monday. Wall Street Zen downgraded Dolby Laboratories from a "buy" rating to a "hold" rating in a research report on Saturday, January 31st. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Dolby Laboratories in a research report on Friday, March 27th. Three 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 company currently has an average rating of "Moderate Buy" and an average price target of $90.75.

Insider Activity at Dolby Laboratories

In related news, CAO Ryan Nicholson sold 2,667 shares of the business's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $66.38, for a total value of $177,035.46. Following the completion of the sale, the chief accounting officer directly owned 36,956 shares in the company, valued at approximately $2,453,139.28. The trade was a 6.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Shriram Revankar sold 3,000 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $66.14, for a total transaction of $198,420.00. Following the transaction, the senior vice president owned 83,218 shares of the company's stock, valued at approximately $5,504,038.52. This represents a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 37.93% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in DLB. Jane Street Group LLC acquired a new position in shares of Dolby Laboratories during the second quarter worth $239,000. EP Wealth Advisors LLC acquired a new position in shares of Dolby Laboratories during the fourth quarter worth $231,000. Cresset Asset Management LLC increased its holdings in shares of Dolby Laboratories by 10.7% during the third quarter. Cresset Asset Management LLC now owns 2,991 shares of the electronics maker's stock worth $216,000 after buying an additional 290 shares in the last quarter. Fieldview Capital Management LLC acquired a new position in shares of Dolby Laboratories during the fourth quarter worth $206,000. Finally, B. Riley Wealth Advisors Inc. acquired a new position in shares of Dolby Laboratories during the second quarter worth $206,000. 58.56% of the stock is currently owned by institutional investors and hedge funds.

About Dolby Laboratories

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.

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