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Dolby Laboratories Reports Q1 2026 Results and Outlook

Story Highlights
  • Dolby’s Q1 2026 revenue and earnings declined year-on-year, but margins stayed high.
  • The company is expanding Dolby Atmos and Vision adoption, returning cash, and guiding solid 2026 growth.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Dolby Laboratories Reports Q1 2026 Results and Outlook

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The latest announcement is out from Dolby Laboratories ( (DLB) ).

On January 29, 2026, Dolby Laboratories reported first-quarter fiscal 2026 revenue of $347 million, down from $357 million a year earlier, with GAAP net income slipping to $53 million, or $0.55 per diluted share, and non-GAAP earnings of $1.06 per share versus $1.14 in the prior-year quarter. The company underscored continued adoption of Dolby Atmos and Dolby Vision across automotive and streaming, highlighting uptake by more than 35 auto OEMs, new integrations with Mercedes-Benz, Mahindra and Qualcomm’s Gen 5 Snapdragon Automotive platform, as well as broader use of Dolby Vision and Atmos by Peacock, major TV brands including Hisense, TCL and TP Vision, LG’s new Dolby Atmos FlexConnect-based sound system, and Meta’s support for Dolby Vision on Facebook and Instagram. Dolby returned capital to shareholders by repurchasing about one million shares for roughly $70 million and declared a $0.36 per-share dividend payable on February 18, 2026 to stockholders of record on February 10, 2026, while issuing guidance for fiscal 2026 that envisions total revenue between $1.4 billion and $1.45 billion, very high gross margins near 90% and non-GAAP operating margins in the mid-30% range, despite acknowledging macroeconomic and geopolitical uncertainties that could weigh on royalty-based licensing revenue.

The most recent analyst rating on (DLB) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Dolby Laboratories stock, see the DLB Stock Forecast page.

Spark’s Take on DLB Stock

According to Spark, TipRanks’ AI Analyst, DLB is a Outperform.

Dolby Laboratories’ overall stock score reflects its strong financial performance and positive earnings call outlook, which are the most significant factors. The technical analysis suggests a neutral market position, while the valuation indicates a potential overvaluation. The company’s strategic focus on expanding its advanced audio and visual products supports a positive long-term outlook.

To see Spark’s full report on DLB stock, click here.

More about Dolby Laboratories

Dolby Laboratories is a San Francisco-based audio and imaging technology company whose core business centers on licensing its Dolby Atmos immersive audio and Dolby Vision high dynamic range video formats, along with related technologies such as imaging patent programs and Dolby OptiView, to consumer electronics makers, automakers, content streamers, and media platforms worldwide.

Average Trading Volume: 648,890

Technical Sentiment Signal: Sell

Current Market Cap: $5.86B

For an in-depth examination of DLB stock, go to TipRanks’ Overview page.

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