Dolby Q1 revenue beats expectations, helped by strong momentum in Dolby Atmos and Dolby Vision technologies

Dolby Laboratories

29/01/2026 21:23

Overview

Audio technology firm's fiscal Q1 revenue fell yr/yr but beat analyst expectations

Adjusted EPS for fiscal Q1 beat analyst expectations

Company repurchased approximately 1 mln shares for $70 mln

Outlook

Dolby estimates Q2 revenue between $375 mln and $405 mln

Company expects full-year revenue between $1.4 bln and $1.45 bln

Dolby anticipates Q2 GAAP gross margins around 90%

Result Drivers

DOLBY ATMOS AND VISION - Strong momentum in Dolby Atmos and Dolby Vision technologies, driving growth

AUTOMOTIVE PARTNERSHIPS - Expansion into automotive market with Dolby Atmos in vehicles like Mercedes-Benz and Mahindra

STREAMING EXPANSION - Peacock's adoption of Dolby's full suite of innovations, including Dolby Vision 2, across live sports

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$347 mln
$332.31 mln (4 Analysts)
Q1 Adjusted EPS
Beat
$1.06
$0.88 (3 Analysts)
Q1 Adjusted Net Income
Beat
$103 mln
$83.98 mln (2 Analysts)
Q1 Net Income
$53 mln
Q1 Dividend
$0.36


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "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 38.9% above its January 28 closing price of $61.19

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn6d0N69a

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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.)