Dolby Laboratories Reports Q3 Earnings and Provides Q4 Outlook
Dolby Laboratories (NYSE:DLB) reported Q3 fiscal 2026 revenue of $305 million, in line with guidance. Non-GAAP earnings per share were $0.69, slightly above the midpoint of expectations. The results reflect strong performance from Dolby Atmos and Vision technologies as well as imaging-patent licensing, though these gains were partially offset by weaker foundational audio sales and deal timing factors. Dolby ended Q3 with $756 million in cash and investments and expanded its share repurchase authorization to approximately $427 million. The company also declared a 9% increase in its quarterly dividend to $0.36 per share. CFO Robert Park noted that lower-than-expected operating expenses helped offset revenue shortfalls. For Q4, Dolby expects sequential growth with revenue projected between $362 million and $392 million (midpoint implies ~23% year-over-year growth). The company anticipates strong performance from the video distribution patent program, automotive adoption of Dolby Atmos, wearables, mobile commitments, and timing factors. Full-year 2026 guidance was narrowed but maintained at a similar midpoint.
Topics: cash_balance growth_forecast non-gaap_eps revenue share-buybacks