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Dolby Laboratories (DLB)
NYSE:DLB
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Dolby Laboratories
(NYSE:DLB)
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Rating:74Outperform
Price Target:
$75.00
▲(13.96% Upside)
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.
Dolby Laboratories (DLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.33B
Dividend Yield2.04%
Average Volume (3M)614.01K
Price to Earnings (P/E)25.3
Beta (1Y)0.79
Revenue Growth5.92%
EPS Growth-2.98%
CountryUS
Employees2,080
SectorN/A
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.99
Shares Outstanding60,852,463
10 Day Avg. Volume523,359
30 Day Avg. Volume614,014
Financial Highlights & Ratios
PEG Ratio-0.92
Price to Book (P/B)0.00
Price to Sales (P/S)5.14
P/FCF Ratio0.00
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue4.64
Enterprise Value/Gross Profit5.27
Enterprise Value/Ebitda16.16
Forecast
1Y Price Target
$90.00Price Target Upside36.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Dolby Laboratories Business Overview & Revenue Model
Company DescriptionDolby Laboratories (DLB) is a global leader in audio and imaging technologies, specializing in creating and delivering high-quality sound and visual experiences across various sectors, including film, television, gaming, and consumer electronics. The company is renowned for its innovative technologies, such as Dolby Atmos, Dolby Vision, and Dolby Audio, which enhance the way content is produced, delivered, and consumed. Dolby operates in multiple markets, including entertainment, automotive, and mobile, providing solutions that enrich user experiences and foster creativity in content creation.
How the Company Makes MoneyDolby Laboratories generates revenue primarily through licensing its technologies to a wide range of partners in the entertainment and technology sectors. Key revenue streams include licensing fees from film studios, television networks, and streaming services that utilize Dolby's audio and video technologies in their productions. Additionally, Dolby earns income from partnerships with consumer electronics manufacturers who integrate Dolby technologies into their products, such as TVs, sound systems, and smartphones. The company also engages in the sale of products and services related to its technologies, including software tools and consulting services for content creators. Significant factors contributing to its earnings include the growing demand for high-quality audio and video experiences, the expansion of streaming services, and collaborations with key industry players, enhancing Dolby's market presence and revenue potential.
Dolby Laboratories Earnings Call Summary
Earnings Call Date:Nov 18, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
Dolby Laboratories reported solid revenue growth and operating margin expansion, with strong engagement in their Dolby Atmos and Vision products across various sectors. However, there were challenges with foundational audio technology and certain market segments showing decline. The overall sentiment is balanced, with significant forward-looking opportunities alongside current market challenges.Q4-2025 Updates
Positive Updates
Revenue Growth and Operating Margin Expansion
In FY 2025, Dolby Laboratories grew revenue by 6%, aided by the acquisition of GE Licensing, and expanded their operating margins by 1.8 percentage points.
Strong Engagement with Dolby Atmos and Dolby Vision
Dolby continues to see strong engagement from content creators, distributors, and device OEMs with Dolby Atmos and Dolby Vision across sports, music, TV, and movies.
Launch of Dolby Vision 2
Dolby Vision 2 was announced, promising improved picture quality with features like ambient light detection and motion control, receiving strong industry reception.
Automotive Expansion
Dolby Atmos and Vision are being integrated into vehicles by brands such as Maruti Suzuki, Li Auto, and Mercedes, expanding Dolby's presence in the automotive sector.
Growth in Mobile and Wearables
Instagram and Douyin have started distributing content in Dolby Vision, and Meta Quest and Samsung Galaxy XR now feature Dolby Atmos and Vision.
Imaging Patents Expansion
Dolby launched a new patent pool for streaming providers, significantly expanding the total addressable market for imaging patents.
Negative Updates
Foundational Audio Technology Revenue Decline
Revenue from Foundational Audio Technology came in just under negative 1%, aligning with expectations of flat growth.
Decline in Consumer Electronics and PCs
Consumer electronics and PCs saw a high single-digit decline, attributed to lower expected unit shipments.
Q1 Fiscal 2026 Revenue Guidance
Q1 2026 revenue is expected to decline approximately 8% year-over-year at the midpoint, due to a tough comparison and timing of recoveries and commitments.
Restructuring Costs
A $6 million restructuring charge was recorded as Dolby continues to streamline operations.
Company Guidance
During the Dolby Laboratories' Fourth Quarter Fiscal Year 2025 earnings call, the company provided guidance for Fiscal Year 2026, projecting revenue between $1.39 billion and $1.44 billion, reflecting an increase of 3% to 7% year-over-year. Licensing revenue is expected to be between $1.285 billion and $1.335 billion, with Dolby Atmos, Dolby Vision, and imaging patents projected to grow approximately 15%. Non-GAAP operating expenses are anticipated to range from $780 million to $800 million, with an improvement in operating margins by 50 to 100 basis points. The company also expects non-GAAP earnings per share between $4.19 and $4.34. For the first quarter of Fiscal Year 2026, revenue guidance is set between $315 million and $345 million, with licensing revenue anticipated to be between $290 million and $320 million. The company aims for a gross margin of approximately 90% on a non-GAAP basis, with non-GAAP earnings per share estimated between $0.79 and $0.94. Factors influencing the first quarter include a challenging comparison to 2025 and the timing of recoveries and minimum volume commitments.Dolby Laboratories Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
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Dolby Laboratories Technical Analysis
Negative
65.81
Price Trends
66.55
Negative
69.21
Negative
72.23
Negative
Market Momentum
0.08
Positive
46.02
Neutral
26.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLB, the sentiment is Negative. The current price of 65.81 is below the 20-day moving average (MA) of 66.91, below the 50-day MA of 66.55, and below the 200-day MA of 72.23, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLB.
Dolby Laboratories Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
79 Outperform | $41.22B | 19.80 | 14.50% | 1.45% | 7.44% | -4.57% | |
79 Outperform | $167.53B | 22.51 | 25.35% | 2.25% | 6.58% | 1.19% | |
78 Outperform | $26.38B | 28.90 | 38.21% | 1.64% | 8.57% | 35.02% | |
76 Outperform | $74.22B | 25.62 | 29.15% | 2.37% | 4.62% | 1.06% | |
74 Outperform | $6.33B | 25.32 | 10.00% | 2.04% | 5.92% | -2.98% | |
67 Neutral | $18.07B | 21.98 | 109.26% | ― | 5.24% | -16.05% |
* Sector Average
DLB
Dolby Laboratories
66.25
-9.97
-13.08%
ACN
Accenture
272.25
-79.18
-22.53%
BR
Broadridge Financial Solutions
225.96
4.97
2.25%
CTSH
Cognizant
85.41
7.67
9.87%
IT
Gartner
250.76
-236.46
-48.53%
INFY
Infosys
20.22
-2.00
-9.00%
Dolby Laboratories Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Dolby Laboratories Reports Strong Q4 2025 Financial Results
Positive
Nov 18, 2025
On November 18, 2025, Dolby Laboratories announced its financial results for the fourth quarter and fiscal year 2025, reporting a total revenue of $307 million for the quarter and $1.35 billion for the year. The company highlighted growth in its Dolby Atmos and Dolby Vision technologies, as well as new partnerships and product launches, indicating a strong market position as it heads into fiscal year 2026.
Executive/Board Changes
Dolby Laboratories Approves 2026 Executive Bonus Plan
Neutral
Nov 14, 2025
On November 11, 2025, Dolby Laboratories‘ Compensation Committee approved the 2026 Executive Bonus Plan, targeting executive officers with bonuses based on a percentage of their base salary. The plan emphasizes achieving non-GAAP operating income and revenue goals, with potential adjustments by the Committee, impacting the final bonus amounts for executives.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.