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    DLB
    Earnings call· Mar 2026(Q2 FY26)

    Dolby Laboratories Q2 FY26 earnings call DLB

    Apr 30, 2026 Source

    Executive summary

    Dolby Q2 FY26 — Strong Content Adoption and Maintained Full-Year Guidance

    Dolby Laboratories delivered Q2 FY26 results in line with expectations, driven by strong adoption of Dolby Atmos and Dolby Vision across content platforms, automotive, and mobile devices. The company maintained its full-year guidance, anticipating continued growth in its core technologies and emerging revenue streams like the video distribution program and Dolby OptiView, despite some end-market specific headwinds.

    Highlights

    5

    • Revenue and non-GAAP EPS for Q2 FY26 came in consistent with guidance.

    • Broadcast revenue was up 26% year-over-year due to a large recovery.

    • A dividend of $0.36 per share was declared, representing a 9% increase from a year ago.

    • Approximately $93 million in operating cash flow was generated during the quarter.

    • Dolby Atmos, Dolby Vision, and imaging patents are expected to grow roughly 15% for the full year, comprising nearly half of licensing revenue.

    Concerns

    3

    • Mobile revenue was down 6% year-over-year in Q2 FY26 due to timing of deals.

    • Foundational revenue is expected to be down slightly for the full fiscal year.

    • The PC end market is expected to decline for the full year primarily due to lower unit sales.

    Guidance & targets

    15
    CategoryTargetConfidence
    Total revenue
    $1.4B to $1.45B
    high materiality
    High
    Licensing revenue
    $1.295B to $1.345B
    high materiality
    High
    Non-GAAP operating expenses
    $780M and $800M
    medium materiality
    High
    Non-GAAP operating margin improvement
    50 and 100 basis points
    medium materiality
    High
    Non-GAAP earnings per share
    $4.30 and $4.45
    high materiality
    High
    Dolby Atmos, Dolby Vision and imaging patents growth
    roughly 15%
    high materiality
    High
    Foundational revenue growth
    down slightly
    medium materiality
    High
    Mobile and Broadcast end market growth
    mid-single digits
    medium materiality
    High
    CE end market growth
    roughly flat
    medium materiality
    High
    PC end market growth
    declines
    medium materiality
    High
    Total revenue
    $295M and $325M
    high materiality
    High
    Licensing revenue
    $270M and $300M
    high materiality
    High
    Non-GAAP gross margins
    approximately 88%
    medium materiality
    High
    Non-GAAP operating expenses
    $200M and $210M
    medium materiality
    High
    Non-GAAP earnings per share
    $0.56 and $0.71
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Broadcast
    Revenue was up year-over-year due to a large recovery mentioned on the last call. Expected to be up mid-single digits for the full year.
    		—26%——
    Mobile
    Revenue was down year-over-year due to timing of deals. Expected to be up mid-single digits for the full year.
    		—-6%——
    CE
    Expected to be roughly flat for the full year.
    		—roughly flat——
    PC
    Expected to decline for the full year primarily due to lower unit sales.
    		—declines——

    Operational metrics

    10
    Non-GAAP EPS
    $1.37
    Q2 FY26

    Within the range of guidance.

    Non-GAAP EPS guidance
    $4.30-$4.45
    FY26

    Full-year guidance maintained.

    Non-GAAP EPS guidance
    $0.56-$0.71
    Q3 FY26

    Next quarter guidance.

    Non-GAAP gross margin
    88%
    Q3 FY26

    Expected for next quarter.

    Cash and investments balance
    $675M
    Q2 FY26

    Balance at the end of the quarter.

    Capital return
    $65M
    Q2 FY26

    Repurchased common stock during the quarter.

    Share repurchase authorization remaining
    $142M
    Q2 FY26

    Remaining on the share repurchase authorization.

    Dividend per share
    $0.36up 9% YoY
    Q2 FY26

    Declared dividend, up from a year ago.

    Dolby Atmos, Dolby Vision, imaging patents growth
    15%
    FY26

    Full-year growth rate expectations unchanged.

    GAAP operating expenses restructuring charge
    $2M
    Q2 FY26

    Related to actions initiated last year.

    Industry KPIs

    3
    MetricValueDetails
    Revenue growth$396M total, $372M licensing, $23M products and servicesUSD
    Operating FCF margin rule of 4050-100 bpsbps
    Ai product adoption monetizationGenius Sports, William Hillcustomers

    Product announcements

    2
    ProductTypeDetails
    Dolby Vision 2 TVslaunch
    Dolby OptiView Sports Intelligence Platformroadmap

    Deals & partnerships

    14
    MetaAdoption of Dolby Vision for social media content streaming

    Meta has adopted Dolby Vision for content streamed on iOS for both Instagram and Facebook.

    DouyinEnabled Dolby Vision for social media content streaming

    Douyin in China has enabled Dolby Vision for content on both iOS and Android.

    AmazonAdded support for Dolby Vision to its ad-supported tier

    Amazon recently announced that it has added support for Dolby Vision to its ad-supported tier.

    TV AztecaBringing Dolby Atmos to free-to-air broadcast

    TV Azteca, the second largest mass media company in Mexico, announced that it will bring Dolby Atmos to free-to-air broadcast.

    BMWDolby Atmos support in automotive

    BMW announced Dolby Atmos support in the 7 Series globally and the iX3 in China at the Beijing Auto Show.

    BYD (Denza line)Dolby Atmos adoption in automotive for European market

    BYD launched its Denza line with Dolby Atmos at the Paris Auto Show, its first car with Dolby Atmos in the European market.

    LexusFirst Dolby Atmos-enabled cars

    Lexus announced their first Dolby Atmos-enabled cars this quarter.

    NIOExpanded Dolby Atmos adoption to sub-brand

    NIO expanded its Dolby Atmos adoption to the Firefly, a compact EV sub-brand for Singapore and Thailand.

    Hisense, TCL, PhilipsPlans to release Dolby Vision 2-enabled TVs

    Hisense, TCL and Philips have announced plans to release a wide range of Dolby Vision 2-enabled TVs globally.

    SharpJoined video distribution program as licensor

    Sharp joined the video distribution program, bringing the total licensors to 40.

    SK PlanetJoined video distribution program as licensor

    SK Planet joined the video distribution program, bringing the total licensors to 40.

    Genius SportsWin for Dolby OptiView

    Genius Sports, a leading data technology and broadcast partner, is a new win for Dolby OptiView.

    William HillUsing Dolby OptiView for horse racing content

    In the U.K., William Hill is now using Dolby OptiView to deliver horse racing, providing consistent low-latency content.

    Hyundai IONIQLaunched with Dolby Atmos (4-channel, 8-speaker implementation)

    In China, the Hyundai IONIQ was launched with Dolby Atmos, featuring a 4-channel, 8-speaker implementation suitable for mass market cars.

    Risks & headwinds

    4
    Macroeconomic factors (memory pricing, oil prices, supply chain, consumer sentiment)ongoing

    discussed, not quantified

    Mitigation: Diverse end markets and revenue streams; good visibility from minimum volume commitments; no significant impact to business to date.

    Mobile revenue declineQ2 FY26

    -6% YoY

    Mitigation: Due to timing of deals; still expected to be up mid-single digits for the full year.

    PC end market declineFY26

    declines

    Mitigation: Primarily due to lower unit sales; offset by strength in other areas.

    Foundational revenue declineFY26

    down slightly

    Mitigation: Offset by growth in other areas.

    What to watch in Q3 FY26

    5

    Mobile end market growth

    Next quarter (Q3 FY26 results)
    Currentdown 6% YoY in Q2 FY26
    Targetmid-single-digit growth for full year FY26

    Why it matters

    Mobile is a key end market, and its recovery from Q2's decline is important for overall licensing revenue growth.

    Mobile was down 6% year-over-year due to timing of📎 deals. We still expect both broadcast and mobile to be up mid-single digits for the full year.

    Q&A highlights

    6

    What is the expected ramp shape for consumption-based revenue streams (Dolby OptiView, VDP) to reach 10% of revenue in 3 years?

    Kevin Yeaman expressed satisfaction with the progress of Dolby OptiView and the video distribution program. He detailed Dolby OptiView's focus on personalized live sports experiences using AI, mentioning customer wins like Genius Sports and NFL. For the Video Distribution Program, he noted 40 licensors and half a dozen licensees, expecting continued growth throughout the year. He did not explicitly state the ramp shape but emphasized the early stages and engagement.

    “We've got a growing roster of customers, NFL, NASCAR, sports information, solutions or services rather. And this quarter, we're excited to add Genius Sports.”

    asked by John Rigatti · answered by Kevin Yeaman

    2 min read5 chapters

    Detailed Narrative

    01

    Content Platform Expansion

    Dolby continues to strengthen its position across the entertainment ecosystem, with significant progress in bringing Dolby content to more platforms. Meta has adopted Dolby Vision for Instagram and Facebook on iOS, and Douyin in China has enabled Dolby Vision for both iOS and Android. The Super Bowl, Winter Olympics, T20 Cricket World Cup, and Formula 1 season are increasingly available in Dolby Vision and Dolby Atmos, driving adoption in new TV sales. Amazon also added Dolby Vision support to its ad-supported tier, and TV Azteca will bring Dolby Atmos to free-to-air broadcast in Mexico.

    02

    Automotive Sector Momentum

    The automotive industry is a key growth driver, with a broader shift towards high-quality in-car entertainment. BMW announced Dolby Atmos support in its 7 Series globally and iX3 in China. BYD launched its Denza line with Dolby Atmos in the European market, marking its first such car outside China. Lexus introduced its first Dolby Atmos-enabled cars, and NIO expanded adoption to its Firefly sub-brand. Notably, the Hyundai IONIQ launched with a 4-channel, 8-speaker Dolby Atmos implementation in China, signaling potential for mass-market penetration.

    03

    Mobile Device Integration and Reach

    Progress in music and social media platforms is enhancing Dolby's value proposition in mobile. Dolby Vision capture and playback, along with Dolby Atmos, are included across Apple's latest iPhone lineup. Xiaomi and Vivo also released flagship devices with Dolby Vision and Atmos. Douyin's full support for Dolby Vision on Android is expected to help drive further adoption into mid-range Android phones, expanding Dolby's reach beyond high-end devices.

    04

    New Revenue Streams: VDP and OptiView

    Dolby is beginning to generate revenue from content platforms through new initiatives. The video distribution program, a patent pool for imaging patents, has expanded to 40 licensors, including Sharp and SK Planet, and has a strong licensee pipeline. Dolby OptiView, which focuses on real-time personalized sports experiences, secured new wins with Genius Sports and William Hill, reinforcing its position in the sports ecosystem and demonstrating its potential for fan engagement and low-latency content delivery.

    05

    Macroeconomic Factors and Guidance Stability

    Management is closely monitoring macroeconomic factors such as memory pricing, oil prices, supply chain issues, and consumer sentiment. While mobile and PC end markets are most exposed to memory pricing dynamics, the company has not seen a significant impact to its business to date. Dolby's diverse set of end markets and revenue streams, combined with good visibility from minimum volume commitments, support the decision to maintain full-year guidance despite minor adjustments in some areas.

    AI-generated summary of the company’s earnings call. Not investment advice.