Dolby Laboratories marginally beats Q4 revenue expectations

Dolby Laboratories

18/11/2025 21:28

Overview

Dolby Laboratories Q4 2025 revenue slightly beats analysts' expectations

Adjusted EPS and adjusted net income beat analysts' estimates

Dolby repurchased 479,000 shares for $35 mln, $277 mln worth of repurchase authorization available

Outlook

Dolby estimates Q1 2026 revenue between $315 mln and $345 mln

Company expects full-year 2026 revenue between $1.39 bln and $1.44 bln

Dolby anticipates Q1 2026 diluted GAAP EPS between $0.39 and $0.54

Result Drivers

TECHNOLOGY ADOPTION - Growth driven by increased adoption of Dolby Atmos and Dolby Vision in TVs and streaming services

NEW PATENT POOL - Introduction of new imaging patent pool for content streamers expanded addressable market

PARTNERSHIPS - Agreements with automakers and streaming platforms enhanced market presence

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$307 mln
$304.70 mln (4 Analysts)
Q4 Adjusted EPS
Beat
$0.99
$0.70 (3 Analysts)
Q4 Adjusted Net Income
Beat
$96 mln
$66.69 mln (2 Analysts)
Q4 Net Income
$49 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Dolby Laboratories Inc is $97.50, about 33.8% above its November 17 closing price of $64.55

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn68RsSpa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)