DLB · Dolby Laboratories, Inc.

Dolby Laboratories reported solid second-quarter fiscal 2026 results, with total revenue of $396 million, up 7% from $370 million in the same quarter last year. GAAP net income rose to $95 million ($0.99 per diluted share) from $92 million ($0.94 per diluted share), while non-GAAP net income was flat at $131 million ($1.37 per diluted share vs. $1.34). The revenue growth was driven by continued expansion in sports and automotive, as highlighted by management: sporting events like the Super Bowl, Winter Olympics, and T20 Cricket World Cup were available in Dolby Atmos/Vision, and automakers BMW and Lexus integrated Dolby into in-car experiences. The company also repurchased approximately 1 million shares for $65 million, ending the quarter with $142 million remaining under its buyback authorization. Additionally, Dolby declared a cash dividend of $0.36 per share, payable on May 20, 2026. Looking ahead, Dolby provided guidance for the third quarter of fiscal 2026: total revenue is expected to range from $295 million to $325 million, with GAAP diluted EPS of $0.19 to $0.34 and non-GAAP diluted EPS of $0.56 to $0.71. For the full fiscal year 2026, revenue is expected between $1.40 billion and $1.45 billion, with GAAP diluted EPS of $2.66 to $2.81 and non-GAAP diluted EPS of $4.30 to $4.45. The Q3 guidance implies a sequential decline from Q2 levels, which may reflect seasonality or macroeconomic uncertainties. The company noted reduced visibility due to trade restrictions, supply chain constraints, and geopolitical instability. Overall, the results demonstrate steady growth in licensing and strategic partnerships, but the cautious guidance suggests near-term headwinds.