Dolby Laboratories, Inc. research snapshot
DLB AI stock analysis as of the August 3, 2026 data cutoff reads Dolby Laboratories as an audio, video, and imaging IP licensing business that is executing on a renewed growth plan after a muted 2025. The stock closed at $58.81 on July 31, 2026, up 13.58% after the Q3 fiscal 2026 report on July 30 beat the mood with revenue of $305 million in line with guidance, non-GAAP EPS of $0.69 just above the middle of guidance, and a stronger-than-feared Q4 outlook, pushing market capitalization to about $5.51 billion based on 93.67 million shares outstanding. Management guided Q4 revenue of $362 million to $392 million, whose midpoint is about 23% higher year over year, and narrowed full-year revenue to $1.41 billion to $1.44 billion with non-GAAP EPS of $4.25 to $4.40 and about 100 basis points of operating margin improvement. The Video Distribution Program, the imaging patent pool, reached 45 licensors in under a year, with Meta and Alibaba joining in the quarter alongside ByteDance, Kuaishou, Roku, and Tencent, and the board added $350 million to the buyback authorization, bringing it to about $427 million, while the dividend rose 9% to $0.36. The stock jumped from a $51.78 prior close to a $58.81 close, above its 5-day, 20-day, 50-day, and 100-day moving averages near $53.38, $50.54, $52.38, and $56.39, but it remains below its 200-day moving average near $60.95, and 14-day RSI near 73 reads short-term overbought. Offsetting the momentum are memory cost inflation that is pressuring mobile and PC unit volumes, PC revenue expected down low single digits in fiscal 2026, a Consumer Electronics segment guided flattish, a TTM net income that fell about 14% to $226.18 million, and a valuation that is only cheap on forward earnings rather than trailing results.
Current price
$58.81
Market cap
$5.51 billion
AI score
68 / 100
Rating
Improved growth outlook at a reasonable forward valuation
Trend status
Short-term bullish after the Q3 report, above the 100-day average but still below the 200-day average
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Dolby licenses audio, video, and imaging IP to device makers, content creators, and streaming platforms, earning royalties per device and per stream, with high margins, low capex, and a growing patent pool business through the Video Distribution Program. | High |
| Moat | The moat rests on a broad patent portfolio, Dolby Atmos and Dolby Vision as premium entertainment standards, ecosystem lock-in with device makers, studios, and streamers, and a VDP that reached 45 licensors in under a year, including Meta, Alibaba, ByteDance, Roku, and Tencent. | High |
| Management | Long-tenured leadership under CEO Kevin Yeaman and CFO Robert Park is executing on growth beyond device licensing, adding $350 million to the buyback authorization to about $427 million, raising the dividend 9% to $0.36, and holding quarterly guidance. | Medium-high |
| Financial trend | Q3 fiscal 2026 revenue of $305 million met guidance with non-GAAP EPS of $0.69 just above the middle, Q4 guidance of $362 million to $392 million implies about 23% year-over-year growth at the midpoint, and fiscal 2026 guidance of $1.41 billion to $1.44 billion with non-GAAP EPS of $4.25 to $4.40 reflects a raised margin path of about 100 basis points of improvement. | High |
| Valuation | At about 12.93x forward earnings, 4.07x sales, 14.03x free cash flow, and 13.72x EV/EBITDA with $6.65 of net cash per share, the stock is reasonably priced against forward estimates, though trailing PE near 25.04 and TTM net income down about 14% keep the trailing picture less flattering. | Medium |
| Technical trend | DLB closed at $58.81 on July 31, 2026, above its 5-day, 20-day, 50-day, and 100-day moving averages but below its 200-day average near $60.95, with 14-day RSI near 73 signaling short-term overbought conditions after a 13.58% jump. | Medium |
| Risk level | Key risks are memory cost inflation that pressures mobile and PC unit volumes, PC revenue expected down low single digits in fiscal 2026, a flattish Consumer Electronics market, open-source codec competition, patent maturation, VDP ramp concentration, and a stock that is still down about 22% over 52 weeks with 7.21% of shares short. | Medium-high |
| AI confidence | High for descriptive facts and cross-checked math that matched across StockAnalysis.com, SEC EDGAR XBRL, the Q3 fiscal 2026 earnings release, the Q3 fiscal 2026 Form 10-Q, and the earnings call transcript. Lower for forward return estimates because memory costs, VDP timing, and automotive unit growth are uncertain. | High data confidence |
| Investment certainty | Medium certainty. The page gives a research framework and scenario ranges, not a buy or sell instruction. | Medium |
DLB AI stock forecast
The DLB AI stock forecast uses scenario math around the July 31, 2026 close of $58.81, the fiscal 2026 non-GAAP EPS guidance midpoint of $4.32, and the fiscal 2027 consensus of about $4.57. The three-scenario framework produced a bearish area near $48, a base area near $68, and a bullish area near $88 over three years, using non-GAAP EPS growth of flat, mid single digits, and low double digits with exit multiples of 11x, 14x, and 16x. These are scenarios, not price commitments.
$78 to $98
More likely if the VDP keeps adding large streamers, automotive licensing approaches 10% of total licensing, Dolby Vision 2 and OptiView ramp on schedule, memory costs ease, and the stock re-rates toward the mid to high teens on forward earnings.
$62 to $74
More likely if Dolby compounds non-GAAP EPS at a mid single-digit rate from the fiscal 2026 midpoint of $4.32, VDP revenue grows steadily without a large catalyst, automotive and mobile grow mid single digits, and the stock holds near a 13x to 15x forward multiple.
$42 to $52
More likely if memory cost inflation cuts mobile and PC units more than guided, VDP licensee growth slows, open-source codecs erode pricing, automotive adoption stalls, or the market compresses the multiple toward the low-teens forward band implied by flat EPS and renewed macro pressure.
DLB AI technical analysis
DLB AI technical analysis is short-term bullish but overbought as of the August 3, 2026 data cutoff. The stock closed at $58.81 on July 31, 2026, after jumping 13.58% on the Q3 fiscal 2026 report, reclaiming its 5-day, 20-day, 50-day, and 100-day moving averages near $53.38, $50.54, $52.38, and $56.39, while the 200-day moving average near $60.95 remains the main overhead test. 14-day RSI near 73 and a raw stochastic near 94 warn that the move is extended short-term.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $58.81 | StockAnalysis.com real-time quote at the July 31, 2026 close, with an after-hours print near $58.75; market cap math uses 93.67 million shares outstanding. |
| 5-day moving average | $53.38 | Barchart reported the 5-day moving average near $53.38 as of July 31, 2026, well below the close after the Q3 earnings jump, so short-term pullback risk is elevated. |
| Near support | $56.00 to $56.50 | The 100-day moving average near $56.39 is the first support below the close; the July 31 low near $54.61 sits just under it. |
| Next support | $52.00 to $53.50 | The 50-day moving average near $52.38 and the 5-day near $53.38 form a support cluster for a deeper pullback. |
| Strong support | $50.00 to $50.60 | The 20-day moving average near $50.54 marks the strongest near-term support and roughly matches the pre-earnings consolidation area near $51.78. |
| Near resistance | $60.90 to $61.00 | The 200-day moving average near $60.95 is the main overhead level; a sustained close above it would flip the long-term trend. |
| Next resistance | $66.00 to $68.00 | Above the 200-day average, the next overhead zone is near $66 to $68, roughly the price area between the Q3 close and the 52-week high. |
| 52-week high | $75.80 | The 52-week high is $75.80, set before the 2025 decline; it is the outer reference for the longer-term trend. |
| 200-day moving average | $60.95 | Barchart and StockAnalysis.com both reported the 200-day moving average near $60.95 on July 31, 2026, above the current price. |
| Momentum | RSI near 73, stochastic near 94 | 14-day RSI near 73.03 and a raw 14-day stochastic near 94 on Barchart and StockAnalysis.com indicate short-term overbought conditions after the earnings jump. |
| Volume | About 1.79 million shares on July 31 | July 31 volume near 1.79 million shares was roughly double the 20-day average near 953,000 shares, which supports the breakout but needs follow-through to hold. |
| Volatility | Elevated near earnings | Barchart reported 14-day historic volatility near 56.9% and 9-day near 65.4%, so position sizing should account for larger swings around reports and guidance. |
| Invalidation | Close below $54 | A decisive close below the July 31 low near $54.61 and the 100-day average near $56.39 would weaken the breakout; a close below the 20-day near $50.54 would turn the short-term trend bearish. |
DLB AI trading strategy
The DLB AI trading strategy is a rules-based research framework for trading and watching the re-acceleration. It is not personal advice and should be paired with fresh chart data, filings, position sizing, and a defined invalidation level.
Watch for DLB to reclaim and hold the 200-day moving average near $60.95 on above-average volume, then to build toward the $66 to $68 zone, with Q4 fiscal 2026 results due in late October 2026 as the next catalyst.
A daily close back below the 100-day moving average near $56.39 or a failed attempt at the 200-day average should trigger a stop and review, because the post-earnings move is overbought short-term.
If DLB pulls back toward the $52 to $56 support zone without new memory-cost or licensing damage, compare the price reaction with Q4 guidance execution, VDP licensee news, and automotive announcements before acting.
Do not average down without a maximum loss rule, because memory cost headlines and VDP ramp timing can turn a support zone into a value trap.
Track VDP licensee additions, automotive licensing progress toward 10% of licensing, Dolby Vision 2 TV and content launches, OptiView scaling, memory cost impact on mobile and PC units, buyback execution, and dividend growth.
Reduce confidence if EPS growth depends mainly on buybacks or one-time timing rather than licensing volume, VDP revenue, and operating cash flow.
Investment research summary
Dolby turns its audio, video, and imaging patents into royalty streams paid by device makers per unit and by streamers and content platforms per stream, and it is expanding from device licensing into usage-based revenue through the Video Distribution Program and OptiView.
The moat combines a broad patent portfolio, Dolby Atmos and Dolby Vision as premium entertainment standards, deep integration with studios, device makers, and streamers, and a VDP that reached 45 licensors in under a year, including Meta, Alibaba, ByteDance, Roku, and Tencent.
The thesis fails if VDP revenue growth stalls as the pool matures, memory cost inflation cuts mobile and PC units more than guided, AV1 and other open codecs erode licensing pricing, automotive adoption slows before reaching scale, patent maturation reduces the royalty base, or management overpays for growth through the renewed buyback.
CEO Kevin Yeaman and CFO Robert Park are executing a growth plan beyond device licensing, with Q3 revenue in line, Q4 guidance whose midpoint is about 23% higher year over year, a raised fiscal 2026 margin path of about 100 basis points of operating margin improvement, a $350 million buyback increase to about $427 million, and a dividend up 9% to $0.36.
Dolby sits at the intersection of streaming, premium entertainment, automotive in-car audio, and user-generated content, and it is broadening its addressable market from device licensing into content platform revenue through VDP, OptiView, and Dolby Vision 2 adoption.
At about 12.93x forward earnings, 14.03x free cash flow, and 13.72x EV/EBITDA with $6.65 of net cash per share, the stock is reasonably priced against forward estimates, but the margin of safety depends on whether VDP, automotive, and Dolby Vision 2 growth justify the forward multiple given trailing earnings are still down year over year.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| DLB price | $58.81 at the July 31, 2026 close, up 13.58%, with an after-hours print near $58.75 | StockAnalysis.com real-time quote | August 3, 2026 |
| Market capitalization | $5.51 billion, computed as $58.81 x 93.67 million shares outstanding | StockAnalysis.com quote and share statistics | August 3, 2026 |
| Q3 fiscal 2026 results | Revenue of $305 million in line with guidance, licensing revenue of $282 million, products and services revenue of $23 million, non-GAAP EPS of $0.69 just above the middle of guidance | Dolby Q3 fiscal 2026 earnings release and call transcript | July 30, 2026 |
| Q3 fiscal 2026 cash flow and returns | About $167 million of operating cash flow, 1.2 million shares repurchased for $65 million, dividend raised 9% to $0.36, cash and investments of $756 million at quarter end | Dolby Q3 fiscal 2026 earnings call transcript | July 30, 2026 |
| Buyback authorization | Board approved a $350 million increase, bringing the total authorization to about $427 million | Dolby Q3 fiscal 2026 earnings call and TheFly coverage | July 30, 2026 |
| Q4 fiscal 2026 guidance | Revenue of $362 million to $392 million, whose midpoint is about 23% higher year over year, licensing revenue of $335 million to $365 million, non-GAAP gross margin near 90%, and non-GAAP EPS of $1.13 to $1.28 | Dolby Q3 fiscal 2026 earnings call transcript | July 30, 2026 |
| Fiscal 2026 guidance | Total revenue of $1.41 billion to $1.44 billion, licensing revenue of $1.31 billion to $1.34 billion, non-GAAP EPS of $4.25 to $4.40, about 100 basis points of operating margin improvement, and non-GAAP operating expenses of $785 million to $795 million | Dolby Q3 fiscal 2026 earnings call transcript | July 30, 2026 |
| Fiscal 2026 end market outlook | Other revenue, which includes automotive and VDP, up high teens, broadcast up mid single digits on imaging patent recoveries, mobile including wearables up mid single digits, CE flattish, PC down low single digits, foundational audio down slightly, and Dolby Atmos, Dolby Vision, and imaging patents up roughly 15% year over year | Dolby Q3 fiscal 2026 earnings call transcript | July 30, 2026 |
| Video Distribution Program progress | 45 licensors in under a year, with Meta, covering Facebook, Instagram, and WhatsApp, and Alibaba joining the pool in the quarter, alongside ByteDance, Kuaishou, Roku, and Tencent | Dolby Q3 fiscal 2026 earnings call transcript | July 30, 2026 |
| Dolby OptiView progress | Multi-year agreement with Roberts Communications Network for ultra-low latency horse racing streaming, and Google announced Dolby OptiView Ads was the first product certified through the Google Ad Manager technology partner program | Dolby Q3 fiscal 2026 earnings call transcript | July 30, 2026 |
| Automotive progress | Agreements with over 40 auto OEMs since the program started, including Volkswagen launching its first Dolby Atmos vehicle in China, Buick Electra E7 pre-sales, Google support for Dolby Atmos through Android Auto with partners including BMW, Genesis, Mahindra, Mercedes-Benz, Renault, and Skoda, plus a General Motors Supplier of the Year award announced May 2026 | Dolby Q3 fiscal 2026 earnings call and GM press release | July 30, 2026 |
| Dolby Vision 2 and device expansion | Dolby Vision 2 in market with some Hisense TVs, with TCL and Philips shipping by end of calendar 2026, Canal+ and Peacock integrating Dolby Vision 2 content, RayNeo GT Max as the first AR smart glasses with Dolby Vision, and Insta360 Luna Ultra supporting Dolby Vision capture | Dolby Q3 fiscal 2026 earnings call transcript | July 30, 2026 |
| FY2025 results | Revenue of $1.349 billion, up 5.92% from $1.274 billion, net income of $255.02 million, EPS of $2.62, operating cash flow of $472.2 million, and free cash flow of $435.85 million | StockAnalysis.com financials and SEC EDGAR 10-K | August 3, 2026 |
| TTM financials | Revenue of $1.354 billion, net income of $226.18 million, EPS of $2.35, operating cash flow of $437.60 million, and free cash flow of $392.67 million over trailing twelve months ending June 2026 | StockAnalysis.com statistics and income statement | August 3, 2026 |
| TTM revenue by segment | Broadcast of $433.22 million, Mobile of $270.83 million, Consumer Electronics of $153.09 million, PC of $145.17 million, Other licensing of $253.69 million, and Products and Services of $98.36 million | StockAnalysis.com financials revenue by segment | August 3, 2026 |
| Cash and cash equivalents | $669.394 million as of June 26, 2026, matching SEC EDGAR XBRL from the Q3 fiscal 2026 Form 10-Q; StockAnalysis.com reports $670.05 million with a net cash position of $622.60 million or $6.65 per share | Dolby Q3 fiscal 2026 Form 10-Q via SEC EDGAR XBRL and StockAnalysis.com | August 3, 2026 |
| Stockholders equity | $2,583.547 million as of June 26, 2026, matching SEC EDGAR XBRL from the Q3 fiscal 2026 Form 10-Q; StockAnalysis.com reports book value of $2.59 billion and book value per share of $27.59 | Q3 fiscal 2026 Form 10-Q via SEC EDGAR XBRL and StockAnalysis.com | August 3, 2026 |
| Total debt | $47.45 million, with the noncurrent operating lease liability at $37.591 million per SEC EDGAR XBRL as of June 26, 2026; debt to equity ratio of 0.02 | StockAnalysis.com balance sheet and SEC EDGAR XBRL | August 3, 2026 |
| Valuation ratios | Trailing PE of 25.04, forward PE of 12.93, PS of 4.07, forward PS of 3.80, PB of 2.13, P/FCF of 14.03, P/OCF of 12.59, EV/EBITDA of 13.72, EV/FCF of 12.44, PEG not available | StockAnalysis.com statistics | August 3, 2026 |
| Analyst consensus | Buy with an average target of $78.33 across 4 analysts, low $60, median $85, and high $90, about 33% above the current price | StockAnalysis.com forecast and analyst ratings | July 31, 2026 |
| Recent analyst ratings | Barrington reiterated Buy with a $90 target on July 31, Rosenblatt reiterated Buy with an $85 target on July 31, and William Blair maintained Buy with no target on July 30 | StockAnalysis.com forecast and TipRanks | July 31, 2026 |
| Rating mix, July 2026 | 2 Strong Buy, 1 Buy, 1 Hold out of 4 analysts | StockAnalysis.com forecast recommendation trends | July 31, 2026 |
| Consensus financial estimates | Fiscal 2026 revenue estimate of $1.41 billion, up about 4.4%, with adjusted EPS of $4.30, and fiscal 2027 revenue of $1.46 billion with adjusted EPS of $4.57 | StockAnalysis.com forecast financial forecast | July 31, 2026 |
| Short interest | 6.76 million shares short, 7.21% of shares outstanding, 11.50% of float, and 6.62 days to cover | StockAnalysis.com statistics short selling | August 3, 2026 |
| Dividend | Annual dividend of $1.44 per share, 2.45% yield, dividend growth of about 9% year over year, 11 years of dividend growth, payout ratio of 61.32%, and ex-dividend date of August 11, 2026 | StockAnalysis.com statistics and dividend history | August 3, 2026 |
| Share count trend | 93.67 million shares outstanding as of June 26, 2026, down 1.23% year over year and 1.04% quarter over quarter | StockAnalysis.com statistics share statistics | August 3, 2026 |
| Technical snapshot | 5-day SMA near $53.38, 20-day SMA near $50.54, 50-day SMA near $52.38, 100-day SMA near $56.39, 200-day SMA near $60.95, 14-day RSI near 73.03, 14-day ADX near 25.80, 14-day historic volatility near 56.9%, and 52-week range of $48.26 to $75.80 | Barchart and StockAnalysis.com technical snapshots | August 3, 2026 |
This DLB AI stock analysis is an informational research tool, not investment advice, a recommendation, or a promise of future return. Forecast ranges are scenarios based on available filings, quote snapshots, and third-party data as of the stated cutoff date. They may be wrong, incomplete, or outdated after new earnings, licensing developments, memory cost shifts, market moves, or macro conditions.
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