Dolby Laboratories, Inc. Class A (DLB)

Over the past six months, Dolby Laboratories' stock has trended down. In Q1 Fiscal Year 2026, Dolby reported non-GAAP EPS of $1.06, surpassing expectations, with total revenues of $346.7 million, a 2.8% year-over-year decline but exceeding estimates. The announcement of Source-Connect 4 receiving Dolby Atmos remote certification was met with a negative market reaction. Dolby showcased partnerships at CES 2026 for Dolby Atmos and Dolby Vision. Peacock fully adopted Dolby technology, including Dolby Atmos for NFL Sunday Night Football and NBA games. There were broader deployments of Dolby Vision and Dolby Atmos in cinema. Dolby reported strong Q4 FY2025 results, with growth in Dolby Atmos, Dolby Vision, and imaging patents, and expansion into new markets with Dolby OptiView. Dolby reported solid Q3 FY2025 results with a Non-GAAP EPS of $0.78, exceeding guidance, and revenue of $316 million, up 9% year-over-year. There has been insider selling activity by several executives.

Demand for Dolby Laboratories' products and services can experience quarterly volatility due to factors such as the timing of recoveries, minimum volume commitments, and true-ups. This can lead to fluctuations in segments like broadcast, mobile, and PC. While there isn't a clearly defined simple seasonal pattern, the company has noted challenges in the PC and consumer electronics markets, which can influence overall demand. Dolby's diversified revenue growth, particularly from innovations like AtmosAuto and Dolby Cinema, positions it for continued expansion.

Dolby Laboratories, Inc. (DLB) is a global technology company specializing in audio and imaging solutions, operating through a high-margin intellectual property licensing model. The company designs and manufactures audio, imaging, accessibility, and other hardware and software solutions for television, broadcast, cinema, and live entertainment. Dolby generates revenue by licensing its proprietary technologies to manufacturers and content providers. Major products and technologies include audio technologies like Dolby Atmos, imaging technologies like Dolby Vision, cinema products, and video codecs.

Dolby Laboratories has a significant global presence, with its headquarters in San Francisco and offices in over 20 countries. Its international operations serve billions of people across various regions, including multiple cities in the United States, Brazil, Australia, Greater China, India, Japan, Singapore, South Korea, and across Europe, as well as Dubai in the Middle East.

Dolby Laboratories maintains a strong brand reputation, built on its long history of innovation in audio and imaging technologies. The company is recognized for transforming the science of sight and sound into spectacular experiences. Dolby has focused on expanding its premium audio and video ecosystem, including partnerships and deployments of Dolby Atmos and Dolby Vision across various platforms. The launch of Dolby Vision 2 in fiscal 2025 demonstrates its commitment to improving picture quality.

Dolby Laboratories' ownership is primarily institutional, with institutional investors holding approximately 59.74% to 84.26% of the company's stock. Major institutional owners include Vanguard Group Inc., Morgan Stanley, and BlackRock, Inc. Individual investors own approximately 28.95% to 37.91% of the company. Insiders hold about 1.60% to 2.35% of the shares, with the largest individual shareholder being Kevin J. Yeaman, President and CEO.