Dolby Laboratories Q3 revenue falls more than expected

Dolby Laboratories

30/07/2026 21:27

Overview
Audio technology firm's fiscal Q3 revenue declined and missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company repurchased 1.2 mln shares for $65 mln and raised buyback authorization by $350 mln

Outlook
Dolby expects Q4 revenue between $362 mln and $392 mln
Company sees full-year revenue between $1.41 bln and $1.44 bln
Dolby says outlook remains subject to macroeconomic and geopolitical uncertainty

Result Drivers
LICENSING REVENUE MIX - Co reported lower licensing revenue in broadcast, mobile, and PC markets compared to prior year
OPERATING EXPENSES - Higher operating expenses, including increased restructuring charges, contributed to lower net income

Company press release: ID:nPn5BPG1pa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$305 mln
$311.96 mln (4 Analysts)
Q3 Adjusted EPS
Beat
$0.69
$0.67 (4 Analysts)
Q3 Adjusted Net Income
Beat
$65 mln
$64.07 mln (2 Analysts)
Q3 Net Income
 
$29 mln
 
Q3 Dividend
 
$0.36
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "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 $85.00, about 61.8% above its July 29 closing price of $52.54
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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(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.)