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Dolby Laboratories Reports Second Quarter 2026 Financial Results

Dolby Laboratories, Inc. (NYSE: DLB) has disclosed its financial outcomes for the second quarter of the fiscal year 2026. During a recent announcement, Kevin Yeaman, President and CEO of Dolby, emphasized the company's commitment to fortifying its market position and generating growth opportunities in both existing and new business sectors. Notably, this quarter marks a significant expansion into the sports sector, with notable events such as the Super Bowl and the Winter Olympics being available in Dolby's enhanced audio and visual formats.

Financial Highlights for Q2 Fiscal 2026

• - Revenue Performance: Dolby's total revenue reached $396 million, a rise from $370 million reported in Q2 of the previous fiscal year (2025).
• - Net Income: The company's GAAP net income was $95 million, translating to $0.99 per diluted share, compared to $92 million or $0.94 per share from the prior period. On a non-GAAP basis, net income stood at $131 million or $1.37 per diluted share, a marginal increase from last year's $131 million or $1.34 per diluted share.
• - Share Buyback: Dolby repurchased approximately one million shares at a total cost of around $65 million, concluding the quarter with about $142 million left for future stock buybacks.

Noteworthy Business Developments

In addition to financial metrics, Dolby shared insights on its ongoing business initiatives and partnerships:

• - Sporting Events in Dolby Formats: Major sporting events, including the Super Bowl and the 2026 Olympic Winter Games, showcased Dolby's innovative audio-visual experiences. Apple TV has also begun streaming Formula One races using Dolby Vision technology.
• - Collaborations in Automotive: At the 2026 Beijing International Automotive Exhibition, Dolby and BMW unveiled the integration of Dolby Atmos sound technology in the newly launched BMW 7 Series, as well as in the BMW iX3 Long Wheelbase.
• - Content Collaboration: The Chinese version of TikTok, Douyin, has fully embraced Dolby Vision content, while several TV manufacturers like Hisense, TCL, and Philips are set to release Dolby Vision 2 enabled TVs globally, enhancing consumer access to high-definition content.

Dividend Announcement

On this occasion, Dolby declared a cash dividend of $0.36 per share for both Class A and Class B common stock, scheduled for distribution on May 20, 2026, to shareholders of record as of May 12, 2026.

Financial Outlook for the Upcoming Fiscal Periods

Dolby's future revenue projections consider various factors affecting royalty-based income amid economic uncertainties:

• - For the third quarter of fiscal 2026, total revenue is estimated to be between $295 million and $325 million, with licensing revenue ranging from $270 million to $300 million. Gross margins are expected to be approximately 86% on a GAAP basis and 88% on a non-GAAP basis.
• - The full year outlook indicates that Dolby anticipates total revenue between $1.40 billion and $1.45 billion, with licensing revenue projected at $1.295 billion to $1.345 billion.
• - Expected diluted earnings per share for the full year is predicted to range from $2.66 to $2.81 on a GAAP basis, and from $4.30 to $4.45 on a non-GAAP basis.

Conclusion

Dolby Laboratories continues to pioneer in the entertainment technology sector, leveraging partnerships and innovations in audio-visual technology to enhance user experiences across various platforms. With promising growth avenues in both sports broadcasting and automotive applications, Dolby remains committed to delivering extraordinary entertainment experiences as they move forward into the future.

For more information, stakeholders can tune into Dolby's upcoming conference call to discuss further details about the quarterly financial results and future expectations.