Dolby Laboratories Inc

Latest Results (04.04.2026):

Dolby Laboratories, Inc. reported results for the first quarter of fiscal 2026. Total revenue was $347 million (down ~3% year‑over‑year). GAAP net income was $53 million, or $0.55 diluted EPS, while non‑GAAP net income was about $103 million, or $1.06 diluted EPS. Management reiterated product momentum for Dolby Atmos and Dolby Vision, announced a $0.36 cash dividend, and repurchased ~1 million shares (~$70 million) during the quarter.

Top-line and profitability

Total revenue for Q1 FY2026 was $346.7M versus $357.0M in Q1 FY2025. GAAP net income attributable to Dolby was $53M (diluted EPS $0.55). Non‑GAAP net income was ~$103M (diluted EPS $1.06). Operating income declined to $62.2M from $79.9M a year earlier; gross profit was $303.5M.

Balance sheet & cash flow

Cash, cash equivalents and restricted cash ended the quarter at $727.6M. Net cash provided by operating activities was $54.8M. Dolby repurchased ~1.0M shares for ~$70M and has approximately $207M of remaining repurchase authorization.

Licensing mix

Licensing revenue remained the largest component at $319.8M. By market: Broadcast 31%, Mobile 23% (up vs prior year), Consumer Electronics 14%, PC 9%, Other 23%.

Non‑GAAP adjustments

The non‑GAAP results exclude stock‑based compensation (~$37M), amortization of acquisition‑related intangibles (~$9.9M), restructuring charges (~$10.5M) and tax adjustments — which explains the gap between GAAP and non‑GAAP EPS and net income.

Capital return and shareholder action

Dolby announced a cash dividend of $0.36 per share payable February 18, 2026, and completed share repurchases of about $70M in the quarter.

Guidance

Q2 FY2026 guidance: total revenue $375M–$405M, licensing $350M–$380M, GAAP diluted EPS $0.94–$1.09 (non‑GAAP $1.29–$1.44), GAAP gross margin ~90% (non‑GAAP ~91%). Full‑year FY2026 guidance: total revenue $1.40B–$1.45B, licensing $1.295B–$1.345B, GAAP EPS $2.71–$2.86 (non‑GAAP $4.30–$4.45), and expected operating margin ~21% GAAP (~34% non‑GAAP).

Business momentum

Dolby highlighted ecosystem wins and product adoption in Q1 FY2026: over 35 auto OEMs supporting Dolby Atmos; Mercedes‑Benz enabling Spatial Audio with Dolby Atmos in Apple CarPlay; Mahindra supporting Atmos and Vision in India; Qualcomm integrating Dolby tech into Snapdragon Automotive Gen 5; Peacock adopting Dolby Vision 2 and extending Dolby technologies across live sports; new TV models from Hisense, TCL and TP Vision supporting Dolby Vision 2; LG launching Sound Suite with Dolby Atmos FlexConnect; and Meta adding Dolby Vision support on Facebook/Instagram.