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Dolby Laboratories Q1 2026 Financial Results Overview

Dolby Laboratories, Inc. (NYSE: DLB) revealed its financial results for the first quarter of fiscal year 2026 on January 29, 2026. The company displayed a solid start to the fiscal year, although total revenue dipped slightly compared to the previous year. Kevin Yeaman, President and CEO of Dolby, expressed optimism about the company’s current market positioning and highlighted their strong growth potential.

Financial Highlights

According to the report, Dolby's total revenue for Q1 2026 amounted to $347 million. This is a decrease from the $357 million reported in Q1 2025. In terms of net income, Dolby recorded a GAAP net income of $53 million, equating to $0.55 per diluted share, down from $68 million or $0.70 per diluted share during the same quarter last year. The non-GAAP net income also reflected a decline, with figures at $103 million or $1.06 per diluted share this year compared to $111 million or $1.14 per diluted share in Q1 2025.

Dolby also reported that it repurchased around one million shares of its common stock at approximately $70 million during this quarter. Additionally, the company ended the quarter with about $207 million left under its stock repurchase authorization.

Recent Business Developments

Among the key highlights, Dolby's technologies continue to gain traction across various markets. Over 35 automotive manufacturers are now implementing Dolby Atmos, which includes luxury brands integrating spatial audio features. Notably, Mercedes-Benz is becoming a pioneer in adopting this technology for its latest models, including electric vehicles.

Meanwhile, other major collaborations are being established. Mahindra has announced the introduction of the first vehicle in India that will support both Dolby Atmos and Dolby Vision technologies. Qualcomm is also expected to utilize Dolby’s innovations in its upcoming Snapdragon Automotive platform.

In the streaming segment, Peacock has become the first platform to adopt Dolby's comprehensive suite of audio-visual technologies, with plans to include Dolby Vision and Atmos in live sports content as well.

Dolby’s partnership with TV manufacturers like Hisense and LG further reinforces its advancements in visual technology, offering enhanced viewing experiences through new upcoming models that will support Dolby Vision 2.

Dividend Announcement

In addition to the financial results, Dolby announced a cash dividend of $0.36 per share for both Class A and Class B common stocks, payable on February 18, 2026. Stockholders of record as of February 10, 2026, will be eligible for this dividend.

Financial Outlook and Forecast

Looking ahead, Dolby anticipates a revenue range of $375 million to $405 million for the second quarter of fiscal 2026. The licensing revenues are expected to be between $350 million and $380 million, with gross margins estimated at around 90% on a GAAP basis. For the full fiscal year 2026, Dolby forecasts total revenue between $1.4 billion to $1.45 billion and licensing revenues from $1.295 billion to $1.345 billion.

Despite facing potential market uncertainties, including geopolitical issues and fluctuating inflation rates, Dolby’s leadership is confident in its capacity to navigate through challenges while pursuing long-term growth opportunities. The upcoming conference call scheduled for January 29, 2026, will further elucidate the company’s strategies and allow investors to gain insights directly from Dolby’s management team.

Overall, while there are challenges ahead, Dolby Laboratories demonstrates a commitment to innovation and strategic growth, continuing to establish itself as a leader in immersive entertainment technology.