New Sports Intelligence helps providers better understand and deepen fan engagement, as Dolby Vision comes to the platform alongside updates to Dolby OptiView Ads
, /PRNewswire/ -- Dolby Laboratories (NYSE: DLB), a leader in immersive entertainment experiences, today announced major updates to Dolby OptiView, its live sports platform, ahead of IBC 2026. The updates include new AI-powered intelligence to better understand what drives fan engagement, the debut of Dolby Vision on the platform, and greater flexibility for Dolby OptiView Ads.
Dolby announced major updates to Dolby OptiView at IBC 2026. Dolby OptiView is a platform designed to deliver more engaging live sports experiences. It gives teams, leagues, and streamers a full suite of capabilities to better understand their audiences, create personalized experiences, unlock monetization opportunities, and deliver premium-quality live content that keeps fans watching.
"From rivalries to the underdog stories that turn into epic championship runs, sports are defined by the moments that fans care about most," said Giles Baker, Senior Vice President of Dolby Cloud Solutions, Dolby Laboratories. "As audiences engage with sports in more ways than ever, understanding what resonates with fans has become increasingly important. Dolby OptiView gives our partners the power to deliver live sports experiences that take fan engagement to a new level, building stronger connections and loyalty while creating opportunities to increase revenue."
Introducing Dolby OptiView Sports Intelligence
Dolby OptiView Sports Intelligence is a new capability designed to help providers understand both the unfolding story of a game and what keeps fans watching. It also provides the tools to use this information to create highlights, catch-ups, and personalized experiences. Powered by AI models developed by Dolby, Dolby OptiView Sports Intelligence uses real-time game data and viewer data to build a minute-by-minute understanding of the game and what engages each viewer. This helps providers identify what audiences find most compelling as the action unfolds live, and anticipate when interest may begin to decline.
Providers can use these insights and tools to build highly personalized experiences that adapt automatically, keeping fans watching without requiring them to customize their own viewing experience. For data-driven fans, that could mean displaying compelling stats relevant to them when the action slows and interest may begin to decline. For fantasy fans following multiple teams, it could mean anticipating when to transition into and out of multiview so they can follow consequential moments across multiple games. For newer audiences, it could mean surfacing untold stories around locker-room dynamics, personal rivalries, and off-field developments that draw them deeper into the sport.
Dolby Vision Now Available Through Dolby OptiView
Dolby Vision is now available through Dolby OptiView for the first time, bringing stunning brightness, contrast, color, and detail to live sports. Whether it's the intensity of a game-winning drive, the atmosphere of a packed stadium, or the moments that might otherwise go unnoticed, Dolby Vision helps fans experience every moment with greater clarity and realism. The Seattle Seahawks are the first team to introduce Dolby OptiView with Dolby Vision, bringing exclusive live programming and preseason coverage directly to fans through the official Seahawks app and Seahawks.com.
"We are continually looking for new ways to enhance our digital offerings for fans and are excited to be the first NFL team to integrate Dolby OptiView," said Kenton Olson, Seahawks Vice President of Digital & Emerging Media. "Partnering with an industry-leader like Dolby will allow us to bring the 12s closer to the game than ever before through richer visuals, lower latency and a more immersive streaming experience within both our mobile app and website."
Greater Flexibility with Dolby OptiView Ads
Dolby is expanding Dolby OptiView Ads beyond the Dolby OptiView Player, enabling support for additional video players. As the first certified server-guided ad insertion solution verified within the Google ecosystem, Dolby OptiView Ads helps publishers maximize monetization while maintaining a high-quality viewing experience. In one deployment with a major sports organization, the solution delivered an average 76% increase in eCPM and an average 132% increase in fill rates. In-stream ad formats help providers make more effective use of their ad inventory while keeping live action visible during ad delivery, reducing disruption for viewers.
"We believe the future of live sports requires greater flexibility for providers and more engaging experiences for fans," said Lemu Coker, CTV Ecosystem Partnerships Manager, Google. "We share Dolby's vision for more personalized sports experiences, and our collaboration brings together complementary technologies that can help publishers unlock new monetization opportunities while delivering the high-quality viewing experiences audiences expect."
Experience Dolby OptiView at IBC 2026
Visitors to IBC 2026 are invited to join Dolby in Amsterdam from September 11 to 14 to explore Dolby OptiView and experience these latest capabilities. Visit Dolby in Hall 5, Stand F86.
About Dolby:
Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Dolby, Dolby Vision, Dolby Atmos, Dolby Cinema, Dolby OptiView and the double-D symbol are trademarks or registered trademarks of Dolby Laboratories Licensing Corporation in the United States and/or other countries. Other trademarks are the property of their respective owners.
Media Contacts:
Dolby
Cairon "Jamie" Armstrong
[email protected]
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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Stock to Watch: Dolby Laboratories (DLB - Free Report) Founded in 1965 and based in San Francisco, CA, Dolby Laboratories, Inc. develops audio and imaging technologies for user-generated content, television, films, music, gaming and live entertainment.
DLB is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
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With a solid Zacks Rank and top-tier Growth and VGM Style Scores, DLB should be on investors' short list.
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Artificial Life (OTCMKTS:ALIF – Get Free Report) and Dolby Laboratories (NYSE:DLB – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Risk and Volatility Artificial Life has a beta of 3.9, meaning that its share price is 290% more volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Valuation & Earnings This table compares Artificial Life and Dolby Laboratories”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Artificial Life N/A N/A N/A N/A N/A Dolby Laboratories $1.35 billion 4.27 $255.02 million $2.35 26.17 Dolby Laboratories has higher revenue and earnings than Artificial Life.
Insider and Institutional Ownership 58.6% of Dolby Laboratories shares are owned by institutional investors. 18.0% of Artificial Life shares are owned by insiders. Comparatively, 37.9% of Dolby Laboratories shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability This table compares Artificial Life and Dolby Laboratories’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Artificial Life N/A N/A N/A Dolby Laboratories 16.70% 11.08% 9.04% Analyst Ratings This is a summary of current ratings and target prices for Artificial Life and Dolby Laboratories, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Artificial Life 0 0 0 0 0.00 Dolby Laboratories 1 1 2 0 2.25 Dolby Laboratories has a consensus price target of $83.00, suggesting a potential upside of 34.94%. Given Dolby Laboratories’ stronger consensus rating and higher possible upside, analysts plainly believe Dolby Laboratories is more favorable than Artificial Life.
Summary Dolby Laboratories beats Artificial Life on 9 of the 10 factors compared between the two stocks.
(Get Free Report)
Artificial Life, Inc. operates as a technology investment company. It operates content development studio, which implements custom solutions for smartphones and tablet devices. The company focuses on mobile and cross-platform applications and games. It is also involved in patent and technology licensing activities that specializes in intellectual property in the field of augmented reality technology and applications. The company was founded in 1994 and is based in Central, Hong Kong.
About Dolby Laboratories (Get Free Report)
Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment at the cinema, DTV transmissions and devices, mobile devices, OTT video and music services, home entertainment devices, and automobiles. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, a digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and various media devices. Its audio technologies also include DD, a digital audio coding technology that provides multichannel sound to applications; DD+, a digital audio coding technology that offers audio transmission for a range of media applications and devices; Dolby TrueHD, a digital audio coding technology providing encoding for media application; Dolby Vision, an imaging technology for cinema and media devices; and HEVC, a digital video codec with high bandwidth efficiency for media devices. In addition, the company offers digital cinema servers, cinema processors, amplifiers, loudspeakers, and audio and imaging hardware and software products for the cinema, television, broadcast, communication, and entertainment industries. Further, it provides 3-D glasses and kits; and various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment. The company serves film studios, content creators, post-production facilities, cinema operators, broadcasters, and video game designers. It sells its products directly to the end users, as well as through dealers and distributors worldwide. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California.
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Kevin Yeaman to Retire from Dolby
Marc Whitten Named President, Chief Executive Officer and Director of Dolby
, /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE: DLB), today announced a new chapter in its leadership as Kevin Yeaman retires from Dolby after nearly two decades with the company and Marc Whitten is appointed President, Chief Executive Officer and a member of Dolby Laboratories' Board of Directors.
After a thoughtful, long-term succession process Dolby Laboratories' Board appointed Marc to lead the company's next chapter. Kevin will stay on as an advisor to ensure a smooth transition.
Marc Whitten named President, Chief Executive Officer and Director of Dolby Laboratories This leadership transition comes from a position of strength and opportunity for the company. Dolby continues to be at the heart of audio and visual innovation shaping how the world creates, distributes and experiences the content people love.
"On behalf of the Board of Directors, I'd like to thank Kevin for his transformational leadership, positioning the company for future opportunities and partnership during the succession planning process and this transition," said Peter Gotcher, Chairman of the Board of Directors of Dolby Laboratories. "Kevin's vision, operational discipline and commitment to innovation have shaped Dolby into the company it is today. By continuously bringing new innovations to life, he significantly expanded the company and led the era of immersive audio and visual experiences."
"I'm deeply proud to have led Dolby through major shifts in technology and entertainment alongside such an exceptional team," said Kevin Yeaman. "Together, we changed the way the world experiences entertainment, broadened the reach of one of the world's most recognizable brands and brought Dolby to billions of people. With the company well positioned for the future, this is the right moment to pass the torch, and I do so with complete confidence in Marc and the entire team to carry the company forward."
Dolby sits at the center of multiple ecosystems and is well positioned for its next phase of growth with opportunities across its branded and patent licensing businesses, offerings for content service providers and beyond.
"Looking ahead, the Board sees significant opportunity for Dolby to expand its reach," said Gotcher. "Marc brings a combination of product vision, technological expertise and proven leadership. He has built and scaled category-defining businesses across industries, led global organizations through periods of transformation and brought together technologies, platforms and partnerships to create enduring growth. We are excited to have him lead Dolby's next chapter."
"Dolby has set the standard for how people experience sight and sound for decades and I believe the company's greatest opportunities are still ahead," said Marc Whitten. "As content, platforms and technologies continue to evolve, Dolby is uniquely positioned to matter even more for creators, partners and consumers. I'm incredibly excited to build on Dolby's strong foundation and work alongside Dolby's teams to drive innovation and create Dolby's next chapter."
Marc is a seasoned technology executive with more than three decades of experience building and scaling category-defining products and platforms across consumer electronics, entertainment, AI, robotics and mobility. Throughout his career, he has driven innovation and growth across ecosystems at some of the world's most influential companies, creating products that have improved the everyday human experience.
Prior to Dolby, Marc held leadership roles at Meta, Cruise, Unity, Amazon, Sonos and Microsoft, where he helped develop and scale businesses including Alexa, Kindle, Fire TV, Xbox and Xbox Live.
"The inventor's culture that Ray Dolby instilled in Dolby Laboratories has been a driving force for more than six decades," said David Dolby, Director, Dolby Laboratories. "Each generation of leadership has expanded what is possible for the company. I'd like to thank Kevin for his many contributions. Our family and the Board are confident in Marc's leadership for the future."
About Dolby
Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding Dolby's leadership transition, future strategy, growth opportunities, market position and business outlook. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Factors that could cause actual results to differ include those described in Dolby's filings with the Securities and Exchange Commission, including the risks identified under the section captioned "Risk Factors" in Dolby's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
General Press Inquiries
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Cinemo, a global leader and one-stop-shop provider for fully integrated, innovative multi-device in-car infotainment solutions, today announced a collaboration with Dolby Laboratories and SmashLabs to bring immersive, music-led gaming into the vehicle cabin creating highly engaging entertainment experiences across a broad range of in-car moments, whether on the move, parked, or while charging.
Three technologies come together as SmashLabs’ games are integrated with Cinemo’s standardized In-Car Game APIs, translating in-game events into real-time vehicle responses. Dolby Atmos® adds immersive audio that moves sound around the cabin, allowing passengers to perceive direction and distance as an integral part of the gameplay. The result is a responsive in-car experience that brings gameplay to life through synchronized sound, lighting, haptics and climate control - tailored to each vehicle model.
“The car is becoming a space where technology creates moments people genuinely remember, see, hear and feel,” highlighted Charly Lippoth, Director Partnerships at Cinemo.
“The future of in-car gaming is not about borrowing content from another screen, it’s about designing experiences that could only exist inside the vehicle,” said Niccolò Cappon, President & CEO at SmashLabs. “With Cinemo and Dolby, we have built responsive, low-latency gameplay that leverages the cabin, its audio, and its interfaces to make every interaction more engaging and every journey more entertaining.”
The gaming experience is now ready for OEM evaluation. Live demonstrations will take place at gamescom 2026 in Cologne, Germany, hall 2.1, stand C-040. Demos can be booked in advance and further information is available here.
About Cinemo
Cinemo is a global provider of innovative infotainment products designed to create seamless digital media experiences. Its portfolio features award-winning, fully integrated, system-agnostic solutions that combine low footprint with high performance and quality.
Founded in 2008, Cinemo provides world-leading digital media solutions for the highly demanding automotive market. Trusted by more than 40 market-leading OEMs and over 20 tier-1 suppliers, Cinemo has a strong track record of industry firsts.
By leveraging its field-proven digital media, cloud, and AI technologies, Cinemo has expanded its range to create the first open cloud ecosystem that connects devices, content, and users.
Cinemo’s global team of innovative thinkers, representing over 40 nationalities, is dedicated to driving continuous growth and developing digital media solutions that create value for our customers and partners.
Further information is available at www.cinemo.com.
About SmashLabs
SmashLabs is a gaming and technology company focused on creating immersive interactive experiences for next-generation infotainment platforms.
Founded with the vision of bringing gaming beyond traditional screens, SmashLabs develops experiences designed specifically for connected environments, combining gameplay, music, interaction and real-time immersion.
The company specializes in rhythm-driven and multiplayer experiences optimized for automotive and spatial computing environments, with a strong focus on seamless integration between software, audio, visuals and interactive systems. SmashLabs is currently developing Smashworld a universe of original music-based immersive games that can be also customized for OEMs.
SmashLabs creates games and entertainment experiences that redefine how passengers engage with digital content inside software-defined vehicles.
Further information is available at www.smashlabs.io
About Dolby:
Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Dolby, Dolby Vision, Dolby Atmos, Dolby Cinema, Dolby OptiView and the double-D symbol are trademarks or registered trademarks of Dolby Laboratories Licensing Corporation in the United States and/or other countries. Other trademarks are the property of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260821307792/en/
Assenagon Asset Management S.A. increased its stake in shares of Dolby Laboratories (NYSE:DLB – Free Report) by 88.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 104,202 shares of the electronics maker’s stock after acquiring an additional 49,044 shares during the quarter. Assenagon Asset Management S.A. owned approximately 0.11% of Dolby Laboratories worth $5,479,000 at the end of the most recent quarter.
Other institutional investors have also recently made changes to their positions in the company. State Street Corp boosted its holdings in Dolby Laboratories by 8.7% in the second quarter. State Street Corp now owns 2,261,059 shares of the electronics maker’s stock worth $167,906,000 after acquiring an additional 180,072 shares in the last quarter. First Trust Advisors LP increased its stake in Dolby Laboratories by 19.9% during the 1st quarter. First Trust Advisors LP now owns 2,254,933 shares of the electronics maker’s stock valued at $135,431,000 after purchasing an additional 374,405 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Dolby Laboratories by 15.6% in the 4th quarter. Geode Capital Management LLC now owns 1,885,246 shares of the electronics maker’s stock worth $122,749,000 after acquiring an additional 254,250 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of Dolby Laboratories by 51.8% in the second quarter. AQR Capital Management LLC now owns 1,736,260 shares of the electronics maker’s stock worth $128,935,000 after purchasing an additional 592,282 shares during the last quarter. Finally, Snyder Capital Management L P lifted its stake in Dolby Laboratories by 24.4% during the 4th quarter. Snyder Capital Management L P now owns 1,427,093 shares of the electronics maker’s stock valued at $91,648,000 after acquiring an additional 279,743 shares in the last quarter. Institutional investors and hedge funds own 58.56% of the company’s stock.
Dolby Laboratories Price Performance Shares of NYSE DLB opened at $61.33 on Thursday. The stock has a market capitalization of $5.74 billion, a PE ratio of 26.10 and a beta of 0.80. Dolby Laboratories has a one year low of $48.26 and a one year high of $75.66. The business’s fifty day moving average price is $53.18 and its 200-day moving average price is $58.45.
Dolby Laboratories (NYSE:DLB – Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.67 by $0.02. The company had revenue of $305.00 million during the quarter, compared to analyst estimates of $311.96 million. Dolby Laboratories had a return on equity of 11.08% and a net margin of 16.70%.The firm’s revenue for the quarter was down 3.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.78 EPS. Dolby Laboratories has set its FY 2026 guidance at 4.250-4.400 EPS and its Q4 2026 guidance at 1.130-1.280 EPS. As a group, equities analysts expect that Dolby Laboratories will post 3.26 EPS for the current fiscal year.
Dolby Laboratories declared that its board has approved a share repurchase plan on Thursday, July 30th that permits the company to repurchase $350.00 million in shares. This repurchase authorization permits the electronics maker to purchase up to 7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.
Dolby Laboratories Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Tuesday, August 11th will be given a dividend of $0.36 per share. The ex-dividend date is Tuesday, August 11th. This represents a $1.44 annualized dividend and a dividend yield of 2.3%. Dolby Laboratories’s dividend payout ratio is currently 61.28%.
Insider Buying and Selling In other news, CMO Todd Pendleton sold 11,876 shares of Dolby Laboratories stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $54.55, for a total value of $647,835.80. Following the completion of the transaction, the chief marketing officer directly owned 41,480 shares in the company, valued at approximately $2,262,734. The trade was a 22.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Ryan Nicholson sold 1,348 shares of the business’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $62.04, for a total value of $83,629.92. Following the sale, the chief accounting officer owned 35,636 shares in the company, valued at approximately $2,210,857.44. The trade was a 3.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 39,581 shares of company stock valued at $2,212,098 over the last three months. Insiders own 37.93% of the company’s stock.
Analysts Set New Price Targets DLB has been the topic of a number of research analyst reports. Rosenblatt Securities restated a “buy” rating and issued a $85.00 target price on shares of Dolby Laboratories in a research note on Friday, July 31st. Barrington Research reiterated an “outperform” rating and set a $90.00 target price on shares of Dolby Laboratories in a research note on Monday, June 15th. Weiss Ratings reissued a “hold (c-)” rating on shares of Dolby Laboratories in a report on Wednesday, June 24th. Finally, Wall Street Zen downgraded shares of Dolby Laboratories from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $90.75.
Get Our Latest Stock Report on DLB
Dolby Laboratories Company Profile (Free Report)
Dolby Laboratories, Inc is a global leader in audio and imaging technologies, specializing in the development, licensing and deployment of solutions that enhance entertainment and communications experiences. The company’s core business revolves around creating advanced audio codecs, noise reduction systems and spatial sound technologies for a wide range of applications, including cinema, broadcast, gaming, streaming and personal devices. Dolby’s licensing model enables consumer electronics manufacturers, content creators and service providers to integrate its technologies into products such as televisions, smartphones, home theater systems and set-top boxes.
Among its flagship innovations are Dolby Atmos, an immersive audio format that delivers three-dimensional soundscapes for theaters and home systems; Dolby Digital and Dolby Digital Plus, widely adopted audio compression formats for broadcast and streaming; and Dolby Vision, a high-dynamic-range imaging technology that expands color, contrast and brightness in displays.
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Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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Stock to Watch: Dolby Laboratories (DLB - Free Report) Founded in 1965 and based in San Francisco, CA, Dolby Laboratories, Inc. develops audio and imaging technologies for user-generated content, television, films, music, gaming and live entertainment.
DLB is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. DLB has a Growth Style Score of B, forecasting year-over-year earnings growth of 1.7% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $4.31 per share. DLB also boasts an average earnings surprise of +16.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, DLB should be on investors' short list.
Innovation Passport award designed to support accelerated time to market and help expedite patient access to potentially transformative new investigational medicines
Neflamapimod selected for the ILAP by joint consensus — recognized for being an innovative therapy that addresses a condition of high unmet need, with the demonstrated potential to offer a major therapeutic advantage in DLB treatment
Program provides CervoMed with early and coordinated guidance from the UK Medicines and Healthcare products Regulatory Agency (MHRA), the National Health System (NHS), and health technology assessment (HTA) bodies
BOSTON, Aug. 04, 2026 (GLOBE NEWSWIRE) -- CervoMed Inc. (NASDAQ: CRVO), a clinical-stage biotechnology company developing treatments for age-related brain disorders (CervoMed or the Company), today announced that neflamapimod, its oral, small molecule drug candidate targeting neuroinflammation-driven disease processes underlying degenerative disorders of the brain, has been granted an Innovation Passport to enter the UK’s ILAP for neflamapimod’s development in DLB. Focusing on potentially transformative investigational treatments that address unmet clinical needs, the ILAP is designed to accelerate time to market and facilitate patient access to new medicines in the UK.
“We’re proud that neflamapimod has been granted entry into this unique and selective program, which recognizes both the highly significant need for an effective treatment for DLB and the transformative potential of neflamapimod for people with DLB and their families,” said Dr. Mark De Rosch, Ph.D., Executive Vice President, Regulatory and Government Affairs, and Program Management of CervoMed. “Very few drugs have been granted this opportunity through the ILAP since the entry criteria into the program were revised and the scientific hurdle for receiving the designation was increased in early 2025. We look forward to working with the UK regulators, the HTA bodies, and all NHS partners as we prepare for our planned Phase 3 trial and work diligently to get neflamapimod to the patients who may benefit.”
"DLB is the second most common progressive dementia in older people in the UK, yet it remains poorly understood and is often misdiagnosed. It is encouraging for the DLB community to see an investigational treatment for this devastating disease included in a program like ILAP. We are hopeful that the coordination between MHRA, the HTA bodies, and the NHS can bring us closer to patients having access to the UK's first approved treatment for DLB," said Jacqui Cannon, Chief Executive of the Lewy Body Society.
The Innovation Passport designation provides access to a single integrated platform for sustained collaboration between biopharmaceutical companies and the ILAP Partners: the MHRA, NHS, the HTA bodies – the National Institute for Health and Care Excellence (NICE), the Scottish Medicines Consortium (SMC), the All Wales Therapeutics and Toxicology Centre (AWTTC), and the Department of Health Northern Ireland. This includes priority access to services such as clinical trials support and NHS engagement, to help speed up access for patients where current treatment options are limited or non-existent.
About Dementia with Lewy Bodies
DLB is the second most common progressive dementia after AD, affecting millions worldwide. Patients may experience a combination of decline in cognitive function, cognitive fluctuations, visual hallucinations, and sleep disorders, as well as motor symptoms similar to Parkinson’s disease. There are no approved treatments for DLB in the United States or European Union, and the current standard-of-care therapies only temporarily relieve symptoms.
About Neflamapimod
Neflamapimod is an investigational, orally administered small-molecule drug that readily crosses the blood-brain barrier and selectively inhibits the alpha isoform of p38 MAP kinase, a key driver of neuroinflammation and synaptic dysfunction. By targeting the critical disease processes underlying degenerative disorders of the brain, neflamapimod has the potential to reverse synaptic dysfunction, improve neuron health, and slow or prevent disease progression. Neflamapimod is currently in clinical development for the treatment of DLB, recovery after ischemic stroke, and primary progressive aphasia.
In nonclinical studies, neflamapimod restored synaptic function within the basal forebrain cholinergic system, the brain region most affected in DLB. Across Phase 1 and 2 clinical trials involving more than 800 participants, the drug has been generally well tolerated and demonstrated consistent signals of efficacy. In the 91-patient Phase 2a AscenD-LB trial, neflamapimod significantly improved dementia severity and functional mobility in patients with DLB. Results from the 159-patient Phase 2b RewinD-LB trial, a 16-week randomized, double-blind, placebo-controlled trial followed by a 32-week neflamapimod-only extension, further supported neflamapimod’s potential to deliver meaningful clinical benefit, improving both cognitive and functional outcomes and showing positive effects on key markers of neurodegeneration, one by structural MRI and one a blood-based biomarker. Across both studies, the greatest benefits were observed in patients without AD co-pathology. Collectively, these findings underscore the therapeutic promise and scientific validity of neflamapimod as a potential treatment for DLB and other degenerative brain disorders.
About the Lewy Body Society
The Lewy Body Society was the first Lewy body dementia charity in Europe.
The charity campaigns for greater recognition and resources for Lewy body dementia, funding cutting-edge research projects at leading universities across the UK to improve the diagnosis, treatment and care of people living with Lewy body dementia and their families.
It also provides information, advice and support to people affected by Lewy body dementia and their caregivers, as well as healthcare professionals and decision-makers.
About CervoMed
CervoMed is a clinical-stage company developing treatments for age-related brain disorders. Its lead drug candidate, neflamapimod, is an oral small molecule targeting critical disease processes underlying degenerative disorders of the brain by inhibiting a key enzyme involved in neuroinflammation and neurodegeneration. CervoMed’s recently completed Phase 2b RewinD-LB trial evaluated neflamapimod in patients with DLB, enriched for those without AD co-pathology. CervoMed has obtained alignment with the FDA and global regulatory authorities on a potential registration path for neflamapimod in DLB, and the Company is currently focused on identifying a strategic partner to advance neflamapimod into a Phase 3 trial in DLB. CervoMed also recently completed enrollment in its ongoing Phase 2a clinical trial evaluating neflamapimod in nfvPPA, a subtype of frontotemporal disorders, from which interim biomarker data is anticipated in the early fourth quarter of 2026, and expects the first patient to be dosed with neflamapimod in the EXPERTS-ALS Phase 2a clinical trial in the fourth quarter of 2026.
Forward-Looking Statements
This press release includes express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, regarding the intentions, plans, beliefs, expectations or forecasts for the future of the Company, including, but not limited to: the Company’s need to acquire sufficient funding (through a strategic partnership or otherwise) for any Phase 3 trial in patients with DLB; expectations with respect to regulatory submissions and potential approvals thereof related to neflamapimod, if any, in DLB or any other indication, including the impact, if any, of the Innovation Passport Designation on any future regulatory milestone or the timing thereof; the Company’s plan to focus on strategic partnering to advance neflamapimod into Phase 3 for DLB and the timing of entering into any such partnership, if at all; the therapeutic potential of neflamapimod in DLB, nfvPPA, amyotrophic lateral sclerosis, or any other indication, including the degree of sustainability of any therapeutic effects or any other treatment effects observed in any clinical trial on any clinical, biomarker, or other outcome measure; the anticipated timing and achievement of clinical and development milestones, including the Company’s initiation of any Phase 3 trial in patients with DLB, the anticipated data readouts from the Company’s Phase 2a trial in nfvPPA and the anticipated dosing of the first patient with neflamapimod in the EXPERTS-ALS trial; and any other expected or implied benefits, results, or expectations, including the extent (if any) to which neflamapimod may demonstrate efficacy or other clinical or biomarker improvements in patients with DLB or in any other indication. Terms such as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “aims,” “seeks,” “intends,” “may,” “could,” “might,” “will,” “should,” “approximately,” “potential,” “target,” “project,” “contemplate,” “predict,” “forecast,” “continue,” or other words that convey uncertainty of future events or outcomes (including the negative of these terms) may identify these forward-looking statements. Although there is believed to be reasonable basis for each forward-looking statement contained herein, forward-looking statements by their nature involve risks and uncertainties, known and unknown, many of which are beyond the Company’s control and, as a result, actual results could differ materially from those expressed or implied in any forward-looking statement. Particular risks and uncertainties include, among other things, those related to: the Company’s available cash resources, the availability of additional funds on acceptable terms or at all, and the Company’s ability to continue as a going concern; the results of the Company’s clinical trials; the Company’s ability to successfully enter into a partnership to advance neflamapimod into Phase 3 for DLB in a timely manner, on acceptable terms, or at all; the likelihood and timing of any regulatory approval of neflamapimod or the nature of any feedback the Company may receive from the FDA or other regulators; the Company’s ability to maintain the intellectual property protection afforded by the Company’s patent portfolio; the ability to implement business plans, forecasts, and other expectations in the future; general economic, political, business, industry, and market conditions, inflationary pressures, and geopolitical conflicts; and the other factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the US Securities and Exchange Commission (SEC) on March 13, 2026, and other filings that the Company may file from time to time with the SEC. Any forward-looking statements in this press release speak only as of the date hereof (or such earlier date as may be identified). The Company does not undertake any obligation to update such forward-looking statements to reflect events or circumstances after the date of this press release, except to the extent required by law.
Key Takeaways Dolby guides Q4 revenue to $362-$392 million, including $335-$365 million from licensing.Meta, Alibaba and agreements with 40-plus automakers broaden Dolby's licensing growth opportunities.Contract timing, mobile commitments and royalty true-ups could keep Dolby's quarterly revenues uneven. Dolby Laboratories, Inc. (DLB - Free Report) expects a sharp fiscal fourth-quarter rebound after third-quarter revenues fell 3.3% year over year to $305 million. The guidance midpoint points to approximately 23% growth, creating a clear test of whether newer licensing opportunities can offset uneven foundational businesses.
The durability of that rebound will depend on content agreements, automotive volume and wearables, as well as how much revenue reflects contract timing rather than underlying adoption.
DLB's Fiscal Q4 Guide Signals a Sharp ReboundDolby forecasts fourth-quarter revenues of $362-$392 million, including licensing revenues of $335-$365 million. Non-GAAP earnings are projected between $1.13 and $1.28 per share.
The outlook represents a substantial sequential improvement from the third quarter. Management expects the video distribution program, higher Dolby Atmos units in automobiles and new device categories to provide the main growth support.
Dolby's Meta Deal Strengthens Content LicensingMeta joined Dolby's video distribution program across Facebook, Instagram and WhatsApp, with a large agreement signed early in the fourth quarter. Alibaba also became a licensee, while the patent pool had 45 licensors less than a year after inception.
These wins advance Dolby's goal of generating 10% of total revenues from content partners by fiscal 2028. A broader content-licensing base could reduce dependence on foundational device audio, although the pace of additional agreements remains important.
DLB's Automotive Momentum Adds Volume SupportDolby has announced agreements with more than 40 automakers, up from more than 20 at fiscal 2025-end. Higher Atmos units in vehicles are expected to contribute to fourth-quarter growth, while support through Android Auto and Apple CarPlay can make the format easier to demonstrate and use.
Xperi Inc. (XPER - Free Report) is also expanding its automotive-media presence through DTS AutoStage, including an announced adoption by BYD. That activity reinforces the vehicle's growing role as an entertainment platform while underscoring competition for automaker relationships.
Dolby's Licensing Timing Clouds the Growth SignalThe projected rebound is not entirely volume-driven. Fourth-quarter guidance benefits from a large agreement signed early in the period and more back-end-loaded mobile minimum commitments, which can shift revenues between quarters.
Image Source: Zacks Investment Research
Recoveries, true-ups and royalty reporting create additional variability. Cirrus Logic, Inc. (CRUS - Free Report) , a supplier of audio and high-performance mixed-signal solutions for mobile and consumer applications, provides another reference point for the device ecosystem, where shipment demand can influence revenue visibility.
DLB's Margin Outlook Improves the Earnings SetupDolby expects a fiscal 2026 non-GAAP operating margin of approximately 34%, representing about 100 basis points of year-over-year expansion. Fourth-quarter non-GAAP gross margin is projected near 90%.
The margin outlook could help convert content and automotive gains into earnings growth even if foundational audio remains uneven. Dolby also expects Atmos, Vision and imaging-patent revenues to rise roughly 15% in fiscal 2026, supporting a more favorable licensing mix.
Dolby's Missing Signals Keep the Event View CautiousThe fourth-quarter guide is meaningful, but its composition prevents treating the forecast as proof that licensing volatility has ended. Sustainable growth would require content and automotive contributions to extend beyond one quarter while device-related weakness stays contained.
DLB currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has a VGM Score of B, Value Score of C, Growth Score of B and Momentum Score of B. The Growth Score of B supports the growth profile, the Momentum Score of B points to relatively favorable timing and the VGM Score of B reflects a supportive combined profile. The Value Score of C is more balanced. Style Scores complement the Zacks Rank rather than override it, so the Rank keeps the near-term view cautious until execution provides firmer evidence.
Dolby Laboratories (DLB +12.00%) stock soared 11.7% through 10:45 a.m. ET Friday after reporting mixed financial results for its fiscal Q3 2026 last night.
Heading into the report, analysts forecast the audio technology company would earn $0.67 per share on quarterly sales of $312 million -- both down significantly from last quarter. Dolby missed the sales estimate, reporting only $305 million in revenue, but beat on earnings, reporting $0.69 per share.
Image source: Getty Images.
Dolby Q3 earnings Year-over-year declines looked a little better, with sales declining only 3.5%. However, it's worth pointing out that Dolby's "$0.69" per-share profit was only a non-GAAP figure. Actual earnings calculated under generally accepted accounting principles (GAAP) were only $0.30 per share -- and down 37% year over year.
Despite this fall-off, Dolby CEO Kevin Yeaman insisted the company "continue[s] to execute against our full-year objectives, and we are building momentum across several of our key growth areas."
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What's next for Dolby stock In line with this prognosis, Dolby estimates that Q4 sales will, in fact, pick up dramatically, and the company is looking for at least 19% sequential growth -- sales between $362 million and $392 million. A strong 88% gross profit margin will help transform these stronger sales into GAAP profit of $0.78 to $0.93 per share.
For the full year, moreover, Dolby is guiding to at least $1.4 billion in revenue, and GAAP profits ranging from $2.62 to $2.77. Taken at the midpoint, that works out to about a 21.5 times current-year price-to-earnings ratio.
For a company growing both sales and earnings only in the low single-digits, though, I fear that's too high a price to pay. Today's spike in the share price is best viewed as an opportunity to exit Dolby stock.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dolby Laboratories. The Motley Fool has a disclosure policy.
Key Takeaways Dolby beat Q3 earnings estimates as lower operating expenses offset softer revenue and higher taxes.DLB expects Q4 revenue growth from Meta's video deal, auto Atmos units and minimum volume timing.Dolby expanded partnerships across streaming, autos and OptiView while boosting buybacks and dividend. Dolby Laboratories, Inc. (DLB - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of 69 cents per share, down 11.5% year over year but above the Zacks Consensus Estimate of 67 cents by 2.99%. Lower-than-expected operating expenses helped offset softer revenues and higher taxes.
Revenues of $305 million fell 3.3% year over year and missed the consensus mark of $314 million by 2.79%. Licensing remained the core business at 93% of sales, while better-than-expected Dolby Atmos, Dolby Vision and imaging patent revenues were offset by deal timing and weaker foundational audio.
In the past year, shares have lost 24.5% compared with the Zacks Audio Video Production industry’s decline of 5.1%.
Image Source: Zacks Investment Research
DLB's Licensing Mix Shows Uneven End MarketsLicensing revenues declined 2.6% year over year to $282.35 million. Broadcast fell 4.2% to $106.58 million, mobile declined 9.4% to $51.01 million and PC decreased 15.6% to $28.34 million. Timing of minimum volume commitments and lower recoveries weighed on these areas.
Consumer electronics increased 12.2% to $31.51 million, primarily on recoveries, while other licensing revenue rose 7.0% to $64.91 million. Dolby Cinema and Atmos adoption in automobiles supported licensing revenue, partly offset by lower gaming-console unit shipments and imaging-patent revenue. Products and services revenue fell 11.7% to $22.64 million because cinema-product sales declined.
Dolby Builds Momentum Beyond Device LicensingMeta joined the video distribution program covering Facebook, Instagram and WhatsApp, while Alibaba signed for video operations spanning e-commerce, entertainment and digital media. The patent pool had 45 licensors after roughly a year, and management said the growing roster is helping advance discussions with other large streamers.
Dolby OptiView secured a multiyear agreement with Roberts Communications Network for ultra-low-latency horse-racing streams. Google certified OptiView Ads for its Ad Manager partner program. Dolby also announced partnerships with more than 40 carmakers, up from over 20 at fiscal 2025-end. Android Auto added Atmos support with partners including BMW, Genesis, Mahindra, Mercedes, Renault and Skoda.
DLB's Costs Weigh on GAAP Operating ProfitGAAP gross profit declined 2.5% to $264.68 million, but gross margin rose to 86.8% from 86.0% as cost of revenue fell faster than sales. Products and services gross margin improved to 22% from 13%. Within services, lower Dolby Cinema warranty and maintenance costs supported margin performance.
GAAP operating expenses increased 2.9% to $230.36 million. General and administrative expenses rose 4.5% to $75.59 million, mainly on litigation and patent-pool program costs, while a $3.96 million restructuring charge compared with a $0.55 million credit a year ago. Operating income fell 28% to $34.32 million, and the effective tax rate increased to 33.3% from 16.2%.
Dolby Guides for a Strong Fiscal Fourth QuarterFor the fourth quarter of fiscal 2026, Dolby expects revenues of $362-$392 million, licensing revenues of $335-$365 million and non-GAAP earnings of $1.13-$1.28 per share. Non-GAAP gross margin is forecast at about 90%, with operating expenses of $195-$205 million.
The revenue-guidance midpoint implies 23% year-over-year growth. Management expects support from the video distribution program, including the Meta deal signed early in the fiscal fourth quarter, higher Dolby Atmos units in automobiles, new device categories such as wearables and the timing of minimum volume commitments.
DLB's Full-Year Outlook Targets Margin ExpansionFor fiscal 2026, DLB projects revenues of $1.41-$1.44 billion, licensing revenues of $1.31-$1.34 billion and non-GAAP earnings of $4.25-$4.40 per share. Non-GAAP operating margin is expected near 34%, representing roughly 100 basis points of year-over-year improvement.
Management expects other licensing revenue to rise in the high teens, driven by automobiles and the video distribution program. Broadcast and mobile are forecast to grow in the mid-single digits, consumer electronics should be roughly flat and PC is expected to decline in the low single digits. Dolby Atmos, Dolby Vision and imaging-patent revenues are projected to grow about 15%.
Dolby Returns Capital as Liquidity Stays SolidThe company generated approximately $167 million in quarterly operating cash flow and ended the period with $756 million in cash and investments. Dolby said its liquidity sources should be sufficient to meet anticipated cash requirements for at least the next 12 months.
Dolby repurchased 1.2 million shares for about $65 million and increased its buyback authorization by $350 million, leaving approximately $427 million available. It also declared a 36-cent dividend, up 9% year over year.
DLB’s Zacks RankDolby currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other CompaniesSonos, Inc. (SONO - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of 27 cents per share, which soared 52% year over year and topped the Zacks Consensus Estimate of 24 cents. The 12.5% surprise reflected higher sales and disciplined spending despite rising memory costs.
Revenues increased 9% to $375 million, beating the $367 million consensus by 2.3%. Speaker demand and international expansion supported growth. Sonos’ installed base exceeded 53 million connected devices across more than 17 million homes.
America Movil, S.A.B. de C.V. (AMX - Free Report) reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments.
BlackBerry Limited (BB - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings per share of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth.
Big Screen Stock Soars on Blockbuster Q2 EarningsDolby Laboratories NYSE: DLB reported third-quarter fiscal 2026 revenue of $305 million, within its prior guidance range, as strength in Dolby Atmos, Dolby Vision and imaging patents was partly offset by deal timing and foundational audio revenue.
Non-GAAP earnings per share were $0.69, slightly above the midpoint of the company’s guidance range. Chief Financial Officer Robert Park said lower-than-expected operating expenses offset lower-than-expected revenue and higher taxes during the quarter.
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Licensing revenue totaled $282 million, while products and services revenue was $23 million. Dolby generated approximately $167 million in operating cash flow, ended the quarter with $756 million in cash and investments, and repurchased 1.2 million shares for $65 million. The company also increased its existing share repurchase authorization by $350 million, bringing total authorization to approximately $427 million.
Dolby declared a quarterly dividend of $0.36 per share, up 9% from a year earlier. Third-quarter GAAP operating expenses included a $4 million restructuring charge related to organizational changes intended to align resources with the company’s most impactful areas.
Fourth-Quarter Outlook Points to Sequential Growth For the fourth quarter, Dolby expects revenue of $362 million to $392 million, including licensing revenue of $335 million to $365 million. The company forecast non-GAAP gross margin of approximately 90%, non-GAAP operating expenses of $195 million to $205 million, and non-GAAP earnings per share of $1.13 to $1.28.
At the midpoint, the fourth-quarter revenue outlook would represent 23% year-over-year growth. Park attributed the expected increase to the company’s video distribution patent program, higher Dolby Atmos unit volumes in automotive applications, and revenue from newer device categories such as wearables. The quarter is also expected to benefit from timing factors, including minimum volume commitments, particularly in mobile.
For fiscal 2026, Dolby narrowed its revenue outlook while maintaining the prior midpoint. The company now expects total revenue of $1.41 billion to $1.44 billion, licensing revenue of $1.31 billion to $1.34 billion, non-GAAP operating expenses of $785 million to $795 million, and non-GAAP EPS of $4.25 to $4.40.
Dolby expects annual non-GAAP operating margin expansion of about 100 basis points, an improvement from its prior outlook for 50 to 100 basis points of expansion. The company said its full-year outlook includes higher tax expense from discrete items in the third quarter.
Other revenue is expected to rise by the high teens, driven by automotive and the video distribution program. Broadcast revenue is expected to grow by the mid-single digits, supported by higher recoveries from imaging patents. Mobile, including wearables, is expected to increase by the mid-single digits on Dolby Atmos and Dolby Vision adoption. Consumer electronics revenue is projected to be roughly flat, as lower unit volumes are offset by higher recoveries and Dolby Atmos adoption. PC revenue is expected to decline by the low single digits, reflecting lower unit shipments and recoveries. Park said foundational audio revenue is expected to decline slightly for the year, while revenue from Dolby Atmos, Dolby Vision and imaging patents is expected to increase by roughly 15% year over year.
Video Distribution Program Adds Meta and Alibaba Chief Executive Officer Kevin Yeaman highlighted Dolby’s effort to expand beyond traditional device licensing and said the company remains on track toward its target of generating 10% of revenue from content partners by the end of fiscal 2028.
During the quarter, Meta became a licensee of Dolby’s Video Distribution Program, a patent pool that licenses imaging patents to video streamers. The agreement covers Meta’s Facebook, Instagram and WhatsApp platforms. Alibaba also became a licensee, covering video operations across its e-commerce, entertainment and digital media platforms.
Yeaman said the patent pool has attracted 45 licensors in less than a year and counts ByteDance, Kuaishou, Meta, Roku, Tencent and Alibaba among its licensees. Park said Meta signed a large agreement early in the fourth quarter, contributing to the company’s fourth-quarter outlook.
In response to analyst questions, Yeaman said the company’s pipeline includes streamers across different types of video content. He said additional licensees can accelerate decisions by prospective participants evaluating the pool’s breadth, pricing and coverage.
OptiView, Automotive and New Device Categories Dolby also reported progress for its Dolby OptiView platform, which offers ultra-low-latency streaming, ad insertion, playback and sports-focused engagement tools. The company signed a multiyear agreement with Roberts Communications Network, a provider of U.S. horse-racing content, for ultra-low-latency video streaming.
Google certified Dolby OptiView Ads as the first product in its Ad Manager technology partner program, according to Dolby. Yeaman said the company plans to begin scaling the ad product to its customer base in the fall after testing a third-generation version with early customers. He said one customer had seen revenue increases of 75% from the technology, which can improve ad targeting and fill rates.
Dolby expects to ship sports fan-engagement solutions in coming months that use artificial intelligence to predict viewer behavior and create individualized stories around live action. The company expects more specific sports-intelligence products to reach the market next year.
In automotive, Dolby said it has announced agreements with more than 40 original equipment manufacturers since launching the program. New developments included Volkswagen’s first Dolby Atmos vehicle in China and Buick’s pre-sales launch for the Dolby Atmos-equipped Electra E7 plug-in hybrid SUV in China. Google also announced Dolby Atmos support through Android Auto with launch partners including BMW, Genesis, Mahindra, Mercedes-Benz, Renault and Škoda.
Yeaman said automotive is Dolby’s fastest-growing end market and its largest category within “other” revenue. The company has historically broken out end markets when they reach 10% of licensing revenue, and he said Dolby will examine whether to do so as it enters the next year.
Dolby Vision Adoption Continues Dolby Vision 2 is now available in certain Hisense televisions, and TCL and Philips are expected to ship TVs with the technology by the end of the calendar year. Canal+ and Peacock are integrating Dolby Vision 2 to prepare content support, Yeaman said.
The company also cited adoption in user-generated content and new devices. RayNeo launched what Dolby described as the first augmented-reality smart glasses equipped with Dolby Vision, while Insta360 launched the Luna Ultra camera with Dolby Vision capture support.
Yeaman said Dolby is monitoring higher memory costs, particularly for mobile and PC markets. He said the effect varies by customer and product tier, while noting that Dolby expects growth from its video distribution program, automotive, wearables and OptiView initiatives despite the dynamic environment.
About Dolby Laboratories (NYSE:DLB)Dolby Laboratories, Inc is a global leader in audio and imaging technologies, specializing in the development, licensing and deployment of solutions that enhance entertainment and communications experiences. The company's core business revolves around creating advanced audio codecs, noise reduction systems and spatial sound technologies for a wide range of applications, including cinema, broadcast, gaming, streaming and personal devices. Dolby's licensing model enables consumer electronics manufacturers, content creators and service providers to integrate its technologies into products such as televisions, smartphones, home theater systems and set-top boxes.
Among its flagship innovations are Dolby Atmos, an immersive audio format that delivers three-dimensional soundscapes for theaters and home systems; Dolby Digital and Dolby Digital Plus, widely adopted audio compression formats for broadcast and streaming; and Dolby Vision, a high-dynamic-range imaging technology that expands color, contrast and brightness in displays.
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Dolby Laboratories (DLB - Free Report) reported $305 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 3.3%. EPS of $0.69 for the same period compares to $0.78 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $313.76 million, representing a surprise of -2.79%. The company delivered an EPS surprise of +2.99%, with the consensus EPS estimate being $0.67.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dolby Laboratories performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Licensing: $282.35 million versus the three-analyst average estimate of $284.77 million. The reported number represents a year-over-year change of -2.6%.Revenue- Products and services: $22.64 million compared to the $28.99 million average estimate based on three analysts. The reported number represents a change of -11.7% year over year.Revenue- Licensing- Market- PC: $28.34 million versus $31.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -15.6% change.Revenue- Licensing- Market- Other: $64.91 million compared to the $59.8 million average estimate based on two analysts. The reported number represents a change of +7% year over year.Revenue- Licensing- Market- CE: $31.51 million versus $29.04 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +12.2% change.Revenue- Licensing- Market- Broadcast: $106.58 million versus the two-analyst average estimate of $101.98 million. The reported number represents a year-over-year change of -4.2%.Revenue- Licensing- Market- Mobile: $51.01 million compared to the $58.68 million average estimate based on two analysts. The reported number represents a change of -9.4% year over year.Gross Margin- Licensing: $259.63 million compared to the $263.1 million average estimate based on three analysts.Gross margin- Products and services: $5.04 million versus the three-analyst average estimate of $6.91 million.View all Key Company Metrics for Dolby Laboratories here>>>
Shares of Dolby Laboratories have returned -0.1% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Dolby Laboratories (DLB - Free Report) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.99%. A quarter ago, it was expected that this creator and licensor of audio, video and voice technologies would post earnings of $1.31 per share when it actually produced earnings of $1.37, delivering a surprise of +4.58%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Dolby Laboratories, which belongs to the Zacks Audio Video Production industry, posted revenues of $305 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.79%. This compares to year-ago revenues of $315.55 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Dolby Laboratories shares have lost about 18.2% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Dolby Laboratories?While Dolby Laboratories has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Dolby Laboratories was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $347.46 million in revenues for the coming quarter and $4.31 on $1.4 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Audio Video Production is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
LiveOne (LVO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +40%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
LiveOne's revenues are expected to be $21.71 million, up 13% from the year-ago quarter.
, /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE:DLB) today announced the company's financial results for the third quarter of fiscal 2026.
"We continue to execute against our full-year objectives, and we are building momentum across several of our key growth areas," said Kevin Yeaman, President and CEO, Dolby Laboratories. "We are expanding our total addressable market and creating new opportunities with content partners through the Video Distribution Program and Dolby OptiView, and we continue to bring Dolby Atmos and Dolby Vision to more experiences from live sports, to music in the car, to user-generated content on mobile devices and more."
Third Quarter Fiscal 2026 Financial Highlights
Total revenue was $305 million, compared to $316 million for the third quarter of fiscal 2025. GAAP net income was $29 million or $0.30 per diluted share, compared to GAAP net income of $46 million or $0.48 per diluted share for the third quarter of fiscal 2025. On a non-GAAP basis, third quarter net income was $65 million or $0.69 per diluted share, compared to $76 million or $0.78 per diluted share for the third quarter of fiscal 2025. Dolby repurchased 1.2 million shares of its common stock for approximately $65 million. A complete listing of Dolby's non-GAAP measures is described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
The 2026 FIFA World Cup was shown in Dolby Atmos and/or Dolby Vision across broadcast, streaming, and pay TV, including Peacock and Comcast in the U.S., Bell TV in Canada, and TV GLOBAL in Brazil. On TVs, Dolby Vision 2 is now in market with some Hisense TVs, and by the end of this calendar year, TCL and Philips will also be shipping TVs with Dolby Vision 2. RayNeo, the leading provider of augmented reality glasses, launched the RayNeo GT Max, the first AR smart glasses supporting Dolby Vision. Insta360, a leader in the action and panoramic cameras segments, launched the Luna Ultra, which supports Dolby Vision capture. Google announced support for Dolby Atmos through Android Auto with partners including BMW, Genesis, Mahindra, Mercedes, Renault, and Skoda. Roberts Communications Network, the largest horse racing streaming provider in the U.S., is using Dolby OptiView for ultra-low latency video streaming for horse racing. Access Advance announced that Meta Platforms, Inc., one of the world's largest distributors of video content, joined the VDP program as a licensee. Dividend
Today, Dolby announced a cash dividend of $0.36 per share of Class A and Class B common stock, payable on August 19, 2026, to stockholders of record as of the close of business on August 11, 2026.
Stock Repurchase Program
Today, Dolby also announced that its Board of Directors has approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of its Class A Common Stock to approximately $427 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that the company considers appropriate.
Financial Outlook
Dolby's financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing herein due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including developments concerning trade restrictions and changes in trade or diplomatic relationships, supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced visibility into Dolby's future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see "Forward-Looking Statements" in this press release for a description of certain risks that Dolby faces, and the section captioned "Risk Factors" in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2026, to be filed on or around the date hereof.
Dolby is providing the following estimates for its fourth quarter of fiscal 2026:
Total revenue is expected to range from $362 million to $392 million. Licensing revenue is expected to range from $335 million to $365 million. Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis. Operating expenses are anticipated to range from $227 million to $237 million on a GAAP basis and from $195 million to $205 million on a non-GAAP basis. Effective tax rate is anticipated to be around 23% on a GAAP basis and around 21% on a non-GAAP basis. Diluted earnings per share is anticipated to range from $0.78 to $0.93 on a GAAP basis and from $1.13 to $1.28 on a non-GAAP basis. Dolby is providing the following estimates for the full year of fiscal 2026:
Total revenue is expected to range from $1.41 billion to $1.44 billion. Licensing revenue is expected to range from $1.31 billion to $1.34 billion. Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis. Operating expenses are anticipated to range from $937 million to $947 million on a GAAP basis and from $785 million to $795 million on a non-GAAP basis. Dolby expects operating margins to be approximately 21% on a GAAP basis and to be approximately 34% on a non-GAAP basis. Effective tax rate is anticipated to be around 24% on a GAAP basis and around 21% on a non-GAAP basis. Diluted earnings per share is anticipated to range from $2.62 to $2.77 on a GAAP basis and from $4.25 to $4.40 on a non-GAAP basis. Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss third quarter fiscal 2026 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, July 30, 2026.
The conference call can be accessed by registering online at Dolby Laboratories Q3 Fiscal Year 2026 Financial Results, at which time registrants will receive dial-in information as well as a conference ID.
A live audio webcast of the conference call will be available at http://investor.dolby.com where it will be archived for one year.
Non-GAAP Financial Information
To supplement Dolby's financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby's operating results in a manner that focuses on what Dolby's management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby's management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.
Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.
Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.
Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby's management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby's business, including
as a means to evaluate period-to-period comparisons. Dolby's management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby's GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.
Forward-Looking Statements
Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the fourth quarter of fiscal 2026 and full year fiscal 2026, Dolby's ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are "forward-looking statements" that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby's business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby's revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby's receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby's ability to develop, maintain, and strengthen relationships with industry participants; Dolby's ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally; Dolby's ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby's SEC filings and reports, including the risks identified under the section captioned "Risk Factors" in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Dolby
Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby OptiView, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
June 26,
2026
June 27,
2025
June 26,
2026
June 27,
2025
Revenue:
Licensing
$ 282,351
$ 289,905
$ 974,367
$ 966,390
Products and services
22,644
25,641
72,964
75,716
Total revenue
304,995
315,546
1,047,331
1,042,106
Cost of revenue:
Cost of licensing
22,718
21,713
67,523
62,508
Cost of products and services
17,601
22,289
60,735
58,105
Total cost of revenue
40,319
44,002
128,258
120,613
Gross profit
264,676
271,544
919,073
921,493
Operating expenses:
Research and development
65,749
65,982
198,477
194,327
Sales and marketing
85,071
86,163
272,786
270,191
General and administrative
75,585
72,307
221,783
212,814
Restructuring charges/(credits)
3,955
(547)
16,605
8,879
Total operating expenses
230,360
223,905
709,651
686,211
Operating income
34,316
47,639
209,422
235,282
Other income/(expense):
Interest income/(expense), net
3,453
4,111
12,595
10,316
Other income, net
6,033
3,766
13,086
16,219
Total other income
9,486
7,877
25,681
26,535
Income before income taxes
43,802
55,516
235,103
261,817
Provision for income taxes
(14,588)
(8,974)
(56,754)
(54,979)
Net income including noncontrolling interest
29,214
46,542
178,349
206,838
Less: net income attributable to noncontrolling interest
(612)
(471)
(1,505)
(1,152)
Net income attributable to Dolby Laboratories, Inc.
$ 28,602
$ 46,071
$ 176,844
$ 205,686
Net income per share:
Basic
$ 0.30
$ 0.48
$ 1.86
$ 2.14
Diluted
$ 0.30
$ 0.48
$ 1.84
$ 2.11
Weighted-average shares outstanding:
Basic
94,242
95,897
94,975
95,947
Diluted
94,518
96,900
95,859
97,537
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
June 26,
2026
September 26,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 669,394
$ 701,893
Restricted cash
69,492
91,468
Short-term investments
652
703
Accounts receivable, net
285,148
331,096
Contract assets, net
206,881
180,804
Inventories, net
30,768
30,424
Prepaid expenses and other current assets
63,706
51,873
Total current assets
1,326,041
1,388,261
Long-term investments
86,437
80,205
Property, plant, and equipment, net
459,115
470,608
Operating lease right-of-use assets
42,401
33,204
Goodwill and intangible assets, net
910,777
926,957
Deferred taxes
213,171
214,361
Other non-current assets
118,660
114,164
Total assets
$ 3,156,602
$ 3,227,760
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 12,470
$ 17,840
Accrued liabilities
360,407
369,256
Income taxes payable
—
8,928
Contract liabilities
33,593
31,382
Operating lease liabilities
9,859
10,384
Total current liabilities
416,329
437,790
Non-current contract liabilities
23,463
29,687
Non-current operating lease liabilities
37,591
28,494
Other non-current liabilities
86,504
99,843
Total liabilities
563,887
595,814
Stockholders' equity:
Class A common stock
52
54
Class B common stock
40
40
Retained earnings
2,598,923
2,634,980
Accumulated other comprehensive loss
(15,468)
(12,517)
Total stockholders' equity – Dolby Laboratories, Inc.
2,583,547
2,622,557
Noncontrolling interest
9,168
9,389
Total stockholders' equity
2,592,715
2,631,946
Total liabilities and stockholders' equity
$ 3,156,602
$ 3,227,760
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Fiscal Year-To-Date Ended
June 26,
2026
June 27,
2025
Operating activities:
Net income including noncontrolling interest
$ 178,349
$ 206,838
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
70,842
65,829
Stock-based compensation
98,883
97,462
Amortization of operating lease right-of-use assets
7,889
8,193
Provision for credit losses
4,244
2,582
Deferred income taxes
1,542
(9,146)
Share of net income of equity method investees, net of cash distributions
(7,602)
1,845
Other non-cash items affecting net income
(1,289)
(429)
Changes in operating assets and liabilities:
Accounts receivable, net
1,489
15,234
Contract assets, net
(28,442)
(6,902)
Inventories
6,512
4,020
Operating lease right-of-use assets
(17,547)
(1,717)
Prepaid expenses and other assets
(31,999)
28,003
Accounts payable and accrued liabilities
35,611
(48,979)
Income taxes, net
(2,771)
1,895
Contract liabilities
1,620
(1,061)
Operating lease liabilities
9,036
(8,237)
Other non-current liabilities
(11,600)
(6,063)
Net cash provided by operating activities
314,767
349,367
Investing activities:
Proceeds from sales of marketable securities
—
15,911
Proceeds from sale of assets held for sale
—
16,881
Purchases of property, plant, and equipment
(28,681)
(20,104)
Business combinations, net of cash and restricted cash acquired, and other related payments
—
(1,362)
Purchases of intangible assets
(42,575)
—
Proceeds from sale of intangible assets
16,623
—
Net cash provided by/(used in) investing activities
(54,633)
11,326
Financing activities:
Proceeds from issuance of common stock
24,685
38,681
Repurchase of common stock
(200,001)
(89,990)
Payment of excise tax on repurchase of common stock
—
(261)
Payment of cash dividend
(102,659)
(95,010)
Distributions to noncontrolling interest
(1,640)
(1,449)
Shares repurchased for tax withholdings on vesting of restricted stock
(33,113)
(35,154)
Net cash used in financing activities
(312,728)
(183,183)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
(1,881)
1,302
Net increase/(decrease) in cash, cash equivalents, and restricted cash
(54,475)
178,812
Cash, cash equivalents, and restricted cash at beginning of period
793,361
577,752
Cash, cash equivalents, and restricted cash at end of period
$ 738,886
$ 756,564
Licensing Revenue by Market
(unaudited)
The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands,
except percentage amounts):
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
Market
June 26, 2026
June 27, 2025
June 26, 2026
June 27, 2025
Broadcast
$ 106,579
38 %
$ 111,286
38 %
$ 326,041
33 %
$ 321,297
33 %
Mobile
51,010
18 %
56,295
19 %
220,199
23 %
217,942
23 %
CE
31,506
11 %
28,071
10 %
118,057
12 %
115,668
12 %
PC
28,343
10 %
33,589
12 %
116,523
12 %
123,247
13 %
Other
64,913
23 %
60,664
21 %
193,547
20 %
188,236
19 %
Total licensing revenue
$ 282,351
100 %
$ 289,905
100 %
$ 974,367
100 %
$ 966,390
100 %
GAAP to Non-GAAP Reconciliations
(unaudited)
The following tables present Dolby's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the third
quarters of fiscal 2026 and fiscal 2025:
Net income:
Fiscal Quarter Ended
(in thousands)
June 26,
2026
June 27,
2025
GAAP net income attributable to Dolby Laboratories, Inc.
$ 28,602
$ 46,071
Stock-based compensation (1)
30,964
30,728
Amortization of acquisition-related intangibles (2)
9,705
10,016
Restructuring charges/(credits)
3,955
(547)
Income tax adjustments
(8,077)
(10,606)
Non-GAAP net income attributable to Dolby Laboratories, Inc.
$ 65,149
$ 75,662
(1) Stock-based compensation included in above line items:
Cost of products and services
$ 440
$ 420
Research and development
9,695
9,188
Sales and marketing
10,293
10,589
General and administrative
10,536
10,531
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing
$ 6,590
$ 6,610
Cost of products and services
768
753
Sales and marketing
352
340
General and administrative
1,554
1,872
Other income, net
441
441
Diluted earnings per share:
Fiscal Quarter Ended
June 26,
2026
June 27,
2025
GAAP diluted earnings per share
$ 0.30
$ 0.48
Stock-based compensation
0.33
0.32
Amortization of acquisition-related intangibles
0.10
0.10
Restructuring charges/(credits)
0.04
(0.01)
Income tax adjustments
(0.08)
(0.11)
Non-GAAP diluted earnings per share
$ 0.69
$ 0.78
Weighted-average shares outstanding - diluted (in thousands)
94,518
96,900
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the fourth quarter of
fiscal 2026 and full year fiscal 2026 included in this release:
Gross margin:
Q4 2026
Fiscal 2026
GAAP gross margin
88.0 %
88.0 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquisition-related intangibles
1.9 %
1.9 %
Non-GAAP gross margin
90.0 %
90.0 %
Operating expenses (in millions):
Q4 2026
Fiscal 2026
GAAP operating expenses (low - high end of range)
$227 - $237
$937 - $947
Stock-based compensation
(30)
(127)
Amortization of acquisition-related intangibles
(2)
(8)
Restructuring charges
—
(17)
Non-GAAP operating expenses (low - high end of range)
$195 - $205
$785 - $795
Operating margin:
Fiscal 2026
GAAP operating margin
21% +/-
Stock-based compensation
9 %
Amortization of acquisition-related intangibles
3 %
Restructuring charges
1 %
Non-GAAP operating margin
34% +/-
Effective tax rate:
Q4 2026
Fiscal 2026
GAAP effective tax rate
23.0 %
24.0 %
Stock-based compensation (low - high end of range)
(2%) - 1%
(2%) - 0%
Amortization of acquisition-related intangibles (low - high end of
range)
(1%) - 0%
(1%) - 0%
Non-GAAP effective tax rate
21.0 %
21.0 %
Diluted earnings per share:
Q4 2026
Fiscal 2026
Low
High
Low
High
GAAP diluted earnings per share (low - high end of range)
$ 0.78
$ 0.93
$ 2.62
$ 2.77
Stock-based compensation (low - high end of range)
0.32
0.32
1.33
1.33
Amortization of acquisition-related intangibles (low - high end of
range)
0.10
0.10
0.41
0.41
Restructuring charges (low - high end of range)
—
—
0.18
0.18
Income tax adjustments (low - high end of range)
(0.07)
(0.07)
(0.29)
(0.29)
Non-GAAP diluted earnings per share (low - high end of range)
$ 1.13
$ 1.28
$ 4.25
$ 4.40
Weighted-average shares outstanding - diluted (in thousands)
93,600
93,600
95,200
95,200
Investor Contact:
Peter Goldmacher
415-254-7415
[email protected]
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
, /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE: DLB), a leader in immersive entertainment experiences, will release financial results for the third quarter (Q3) fiscal year 2026 after the close of regular trading on Thursday, July 30, 2026.
Members of Dolby management will lead a conference call open to all interested parties to discuss Q3 fiscal year 2026 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, July 30, 2026.
The conference call can be accessed by registering online at Dolby Laboratories Q3 Fiscal Year 2026 Financial Results, at which time registrants will receive dial-in information as well as a conference ID.
A live audio webcast of the conference call will be available at http://investor.dolby.com where it will be archived for one year.
About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Dolby, Dolby Vision, Dolby Atmos, Dolby Cinema, Dolby OptiView and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries.
Investor Contact:
Peter Goldmacher
Dolby Laboratories
[email protected]
BOSTON, July 14, 2026 (GLOBE NEWSWIRE) -- CervoMed Announces New Clinical, Plasma Biomarker and Imaging Data at AAIC 2026 for Neflamapimod in the Treatment of Dementia with Lewy Bodies (DLB)
New analyses of Phase 2b clinical trial reinforce treatment effect of neflamapimod observed relative to placebo in “pure” DLB and support selection of 50 mg TID for planned Phase 3 study in DLB
Neflamapimod produced durable slowing of basal forebrain atrophy and increased basal forebrain connectivity relative to placebo in trial, reinforcing the basal forebrain as a key therapeutic target in DLB
New Phase 2 study showed an 80 mg twice-daily dose of neflamapimod met its primary safety, tolerability, and pharmacokinetic objectives, with encouraging secondary findings on clinical activity
BOSTON, July 14, 2026 — CervoMed Inc. (NASDAQ: CRVO) (CervoMed or the Company) presented new analyses this week highlighting insights into neflamapimod's treatment effects in DLB at the Alzheimer's Association International Conference (AAIC) 2026 in London. The analyses included treatment effects during the placebo-controlled portion of CervoMed’s Phase 2b clinical trial, as well as the impact of achieving higher plasma drug concentrations relative to placebo during the trial's extension phase. They also included pharmacokinetic-pharmacodynamic (PK-PD) relationships for neflamapimod and its effects on MRI measures of the underlying disease process in DLB.
“The analyses presented at AAIC provide consistent evidence across clinical, plasma biomarker, and imaging studies that neflamapimod has the potential to address the underlying cause of DLB and sharpen our understanding of the optimal dosing strategies to help achieve this outcome,” said Dr. John Alam, Chief Executive Officer of CervoMed. “These studies provide important insights for the implementation of neflamapimod’s planned Phase 3 trial, and we’re thrilled to be able to share them with the DLB community.”
Data presented at the conference included new analyses from the 159-patient Phase 2b RewinD-LB trial of neflamapimod, a 16-week randomized, double-blind, placebo-controlled study followed by a 32-week neflamapimod-only extension, as well as additional preclinical and clinical studies. Collectively, these analyses span neflamapimod's effects on disease progression, biomarkers of neurodegeneration, and basal forebrain atrophy in DLB, along with the first data on the safety, tolerability, pharmacokinetics, and clinical activity of an 80 mg twice-daily (BID) dose.
Analyses Reinforce Observed Treatment Effect of Neflamapimod in “Pure” DLB and Support Planned Phase 3 Dose
In the placebo-controlled phase of the RewinD-LB trial, neflamapimod did not replicate the positive results seen in its earlier Phase 2a study, in which it improved outcomes on the Clinical Dementia Rating – Sum of Boxes (CDR-SB) scale versus placebo. CDR-SB is a scoring scale used to stage the severity of Alzheimer's disease and other dementias. The analyses presented at AAIC indicate that the failure of the study to replicate the Phase 2a results can be attributed to a combination of a higher-than-targeted proportion of patients with Alzheimer’s disease (AD) co-pathology (as determined by elevated plasma pTau181 levels at screening), and use of a neflamapimod drug product batch that did not achieve expected plasma drug concentrations. Specifically, exploratory analyses from RewinD-LB provide evidence that neflamapimod slowed worsening of DLB in patients with low plasma pTau181 and in those who achieved expected plasma drug concentrations.
Exploratory analyses of the placebo-controlled phase of RewinD-LB identified treatment effects favoring neflamapimod on CDR-SB, with a consistently improving treatment effect at progressively lower plasma pTau181 levels. The plasma pTau181 cut-off of <21 pg/mL has recently been identified in scientific literature as the optimal cut-off to exclude AD pathology. Further, the improvement relative to placebo observed in the subset of participants with pTau181 <21 pg/mL was limited to those patients who were above the median trough plasma drug concentration for the study as a whole.
These effects were also demonstrated by the extension-phase results, where a batch of capsules (DP Batch B) achieved higher plasma drug concentrations than the batch used during the placebo-controlled phase (DP Batch A). A within-participant comparison of DP Batch B demonstrated a significant improvement in change in CDR-SB compared to placebo (0.17 increase with DP Batch B during the extension vs. 0.95 with placebo in the same patients, p=0.005; NOTE: an increase in CDR-SB score indicates worsening of disease), while a within-subject improvement was not seen with DP Batch A.
Together, these analyses corroborate that the study's primary result was affected by the inclusion of patients with AD co-pathology and by lower-than-expected neflamapimod exposure in some patients. These findings support the patient population and dose selected for the Company’s planned Phase 3 trial in patients with DLB, for which the Company has gained alignment with US Food and Drug Administration (FDA), European Medicines Agency, Medicines and Healthcare products Regulatory Agency, and Pharmaceuticals and Medicines Devices Agency.
Neflamapimod Demonstrated Durable Slowing of Basal Forebrain Atrophy
Over the 16 weeks of the placebo-controlled period of the RewinD-LB trial, neflamapimod-treated participants demonstrated increased right basal forebrain (BF) volume relative to placebo, as measured by structural and functional MRI. BF atrophy is the primary pathogenic driver of disease expression and progression in DLB. Right basal forebrain volume remained stable over 48 weeks (placebo-controlled phase + extension) in participants receiving neflamapimod in both phases and stabilized after treatment initiation in the extension in prior placebo recipients.
Increases in functional connectivity between the right BF and the right default mode network (DMN) were also observed during the neflamapimod-only extension. Disruption in BF-DMN connectivity, marked by abnormal activity in these regions, has been linked to neurodegenerative disorders such as DLB.
The laterality of the treatment effect is consistent with published data showing that, in DLB, the neurodegeneration is more advanced in the left basal forebrain, potentially allowing for positive treatment effects to be more achievable on the right side.
New PK-PD Analysis and Phase 2 Study Results for Neflamapimod 80 mg BID in DLB Strengthen Understanding of Dosing
PK-PD Analysis
A new analysis showed that a consistent pharmacokinetic-pharmacodynamic relationship has been observed across nonclinical and clinical studies of neflamapimod, with a plasma trough drug concentration (Ctrough) threshold (~4 ng/mL) associated with biomarker and clinical improvements. The 4 ng/mL plasma threshold exceeds the in vitro concentration necessary to produce neflamapimod's primary pharmacologic effect, inhibition of interleukin-1β neurotoxic signaling.
Across the Company’s trials in DLB, observed clinical outcomes with neflamapimod have tracked with the proportion of patients who achieved the plasma Ctrough threshold of ~4 ng/mL:
% of Patients Achieving Ctrough
≥ 4 ng/mLObserved Clinical Outcomes40 mg BID
(Phase 2a only)25%No discernible activity40 mg TID Batch A
(Phase 2b)50%Marginal clinical activity, except potentially in those who achieve
Ctrough target40 mg TID Batch B
(Phase 2b)75%Demonstrated improvement on CDR-SB, CGIC and plasma GFAP
BID: twice daily; CDR-SB: Clinical Dementia Rating scale – Sum of Boxes; CGIC: clinical global impression of change; GFAP: glial fibrillary acidic protein; TID: three times daily
Based on the above findings, the dose for the Company's planned future trials has been selected to be 50 mg TID, which is expected to achieve at or above the plasma Ctrough threshold of ~4 ng/mL in approximately 90% of patients.
Phase 2 Study of Neflamapimod 80 mg BID in Patients with DLB
A separate study evaluated an alternative dose of neflamapimod, 80 mg BID, which met its primary objectives for safety, tolerability, and pharmacokinetics. The regimen was well tolerated, with no new safety signals identified over 24 weeks in 26 participants with DLB and achieved target trough plasma concentrations predicted to optimize p38α inhibition, though the increase in Ctrough observed relative to the 40 mg TID dose utilized in the Company’s prior clinical trials was not dose proportional.
"Our clinical study of neflamapimod 80 mg twice daily met its primary objectives for safety, tolerability and pharmacokinetics. Although the clinical findings should be interpreted cautiously because this was an open-label study, the findings on the secondary objective of clinical activity are also very encouraging and consistent with the findings in prior studies of neflamapimod in patients with DLB, showing stabilization of executive function and of global cognition and function, along with evidence of reduced neuropsychiatric symptoms," said Professor Frederic Blanc, the 80 mg BID study's principal investigator, professor of geriatrics, and neurologist at Strasbourg University Hospitals.
Evaluation of other exploratory clinical, plasma biomarker, and MRI endpoints is ongoing.
CervoMed’s poster presentations of the results described above will be accessible in the Events and Presentations section of CervoMed’s website, https://www.cervomed.com/, following the presentation.
About Dementia with Lewy Bodies
DLB is the second most common progressive dementia after AD, affecting millions worldwide. Patients may experience a combination of decline in cognitive function, cognitive fluctuations, visual hallucinations, and sleep disorders, as well as motor symptoms similar to Parkinson’s disease. There are no approved treatments for DLB in the United States or European Union, and the current standard-of-care therapies only temporarily relieve symptoms.
About Neflamapimod
Neflamapimod is an investigational, orally administered small-molecule drug that readily crosses the blood-brain barrier and selectively inhibits the alpha isoform of p38 MAP kinase, a key driver of neuroinflammation and synaptic dysfunction. By targeting the critical disease processes underlying degenerative disorders of the brain, neflamapimod has the potential to reverse synaptic dysfunction, improve neuron health, and slow or prevent disease progression. Neflamapimod is currently in clinical development for the treatment of DLB, recovery after ischemic stroke, and primary progressive aphasia.
In nonclinical studies, neflamapimod restored synaptic function within the basal forebrain cholinergic system, the brain region most affected in DLB. Across Phase 1 and 2 clinical trials involving more than 800 participants, the drug has been generally well tolerated and demonstrated consistent signals of efficacy. In the 91-patient Phase 2a AscenD-LB trial, neflamapimod significantly improved dementia severity and functional mobility in patients with DLB. Results from the 159-patient Phase 2b RewinD-LB trial, a 16-week randomized, double-blind, placebo-controlled trial followed by a 32-week neflamapimod-only extension, further supported neflamapimod’s potential to deliver meaningful clinical benefit, improving both cognitive and functional outcomes and showing a positive effect on a key blood biomarker of neurodegeneration during the extension phase. Across both studies, the greatest benefits were observed in patients without AD co-pathology. Collectively, these findings underscore the therapeutic promise and scientific validity of neflamapimod as a potential treatment for DLB and other degenerative brain disorders.
About CervoMed
CervoMed is a clinical-stage company developing treatments for age-related brain disorders. Its lead drug candidate, neflamapimod, is an oral small molecule targeting critical disease processes underlying degenerative disorders of the brain by inhibiting a key enzyme involved in neuroinflammation and neurodegeneration. CervoMed’s recently completed Phase 2b RewinD-LB trial evaluated neflamapimod in patients with DLB, enriched for those without AD co-pathology. In November 2025, CervoMed announced alignment with the FDA on a potential registration path for neflamapimod in DLB, and the Company is currently focused on identifying a strategic partner to advance neflamapimod into a Phase 3 trial in DLB. CervoMed also recently completed enrollment in its ongoing Phase 2a clinical trial evaluating neflamapimod in nfvPPA, a subtype of frontotemporal disorders, from which interim biomarker data is anticipated in the early fourth quarter of 2026, and expects the first patient to be dosed with neflamapimod in the EXPERTS-ALS Phase 2a clinical trial in the fourth quarter of 2026.
Forward-Looking Statements
This press release includes express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, regarding the intentions, plans, beliefs, expectations or forecasts for the future of the Company, including, but not limited to: the Company’s need to acquire sufficient funding, including funding (through a strategic partnership or otherwise) for any Phase 3 trial in patients with DLB; the Company’s plan to focus on strategic partnering to advance neflamapimod into Phase 3 for DLB and the timing of entering into any such partnership, if at all; the therapeutic potential of neflamapimod in DLB, nfvPPA, amyotrophic lateral sclerosis, or any other indication, including the degree of sustainability of any therapeutic effects, its potential impact on the rate of disease progression and/or clinical worsening, the optimal dosing regimen to achieve therapeutic effects, or any other treatment effects observed in any clinical trial on any clinical, biomarker, or other outcome measure; the anticipated timing and achievement of clinical and development milestones, including the Company’s initiation of any Phase 3 trial in patients with DLB; the anticipated data readouts from the Company’s Phase 2a trial in nfvPPA and the anticipated dosing of the first patient with neflamapimod in the EXPERTS-ALS trial; any other expected or implied benefits or results, including the extent (if any) to which neflamapimod may demonstrate efficacy or other clinical or biomarker improvements in patients; and expectations with respect to neflamapimod, including the timing of any regulatory submissions and potential approvals thereof, if any, in DLB or any other indication. Terms such as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “aims,” “seeks,” “intends,” “may,” “could,” “might,” “will,” “should,” “approximately,” “potential,” “target,” “project,” “contemplate,” “predict,” “forecast,” “continue,” or other words that convey uncertainty of future events or outcomes (including the negative of these terms) may identify these forward-looking statements. Although there is believed to be reasonable basis for each forward-looking statement contained herein, forward-looking statements by their nature involve risks and uncertainties, known and unknown, many of which are beyond the Company’s control and, as a result, actual results could differ materially from those expressed or implied in any forward-looking statement. Particular risks and uncertainties include, among other things, those related to: the Company’s available cash resources, the availability of additional funds on acceptable terms or at all, and the Company’s ability to continue as a going concern; the results of the Company’s clinical trials; the Company’s ability to successfully enter into a partnership to advance neflamapimod into Phase 3 for DLB in a timely manner, on acceptable terms, or at all; the likelihood and timing of any regulatory approval of neflamapimod or the nature of any feedback the Company may receive from the FDA or other regulators; the Company’s ability to maintain the intellectual property protection afforded by the Company’s patent portfolio; the ability to implement business plans, forecasts, and other expectations in the future; general economic, political, business, industry, and market conditions, inflationary pressures, and geopolitical conflicts; and the other factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the US Securities and Exchange Commission (SEC) on March 13, 2026, and other filings that the Company may file from time to time with the SEC. Any forward-looking statements in this press release speak only as of the date hereof (or such earlier date as may be identified). The Company does not undertake any obligation to update such forward-looking statements to reflect events or circumstances after the date of this press release, except to the extent required by law.
SummaryCognition Therapeutics is currently prioritizing zervimesine for DLB psychosis. This is after the FDA’s feedback gave their planned pivotal program a clearer path.Basically, DLB psychosis has no approved therapy, and zervimesine is a promising oral once-daily drug that already has interesting Phase 2 data.CGTX’s SHIMMER trial was a good start, but their next trial must confirm longer-lasting hallucination and delusion benefits.I do believe their narrowed focus helps to some extent. Still, CGTX’s runway only lasts into Q2 2027, while the pivotal start is expected around mid-2027.So, despite its potential dilution risks, I feel CGTX’s zervimesine potential for DLB warrants a speculative “Buy” at an EV of just $71.9 million. Richard Drury/DigitalVision via Getty Images
Cognition Therapeutics, Inc. (CGTX) is a biopharmaceutical company developing a small-molecule drug called zervimesine. This asset is targeted for age-related neurodegenerative disorders, principally dementia with Lewy bodies (DLB) and Alzheimer’s disease (AD). Based on the results of the Phase
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
June 24, 2026 07:30 ET | Source: Cognition Therapeutics, Inc.
- Zervimesine Would be the First Long-term, Durable Treatment Option with an Impact on Underlying Disease -
- Company Developing NPI as a Measure of DLB Psychosis -
PURCHASE, N.Y., June 24, 2026 (GLOBE NEWSWIRE) -- Cognition Therapeutics, Inc., (the "Company" or "Cognition") (NASDAQ: CGTX), a clinical-stage company developing product candidates that treat neurodegenerative disorders, today announced that it received written feedback from the U.S. Food and Drug Administration (FDA) following its recent meeting. The FDA agreed that psychosis associated with dementia with Lewy bodies (DLB) could be an approvable outcome and reached alignment with the Company on key aspects of a pivotal trial to support a New Drug Application (NDA). The registrational program is expected to begin in mid-2027.
As discussed with the FDA, Cognition expects the Phase 3 study will enroll people with DLB who experience psychosis symptoms of hallucinations and delusions. Patients receiving stable background treatment with off-label antipsychotic medications will be eligible. Following screening, participants will be randomized to receive either 100 mg of once-daily oral zervimesine or placebo for nine months. The company will work with the FDA on the analytical and statistical details for the use of the neuropsychiatric inventory (NPI) as a novel primary endpoint for a pivotal trial in DLB psychosis.
“We reached an important agreement with the FDA that DLB psychosis could be an approvable outcome and that key aspects of our registrational trial design are appropriate and supportive of a NDA,” explained Anthony O. Caggiano, MD, PhD, chief medical officer of Cognition. “To date, few drugs have been researched for DLB and none have been approved. The only recourse for DLB patients experiencing psychosis is the off-label use of potentially dangerous antipsychotics.”
The proposed Phase 3 study builds on findings from Cognition's Phase 2 COG1201 ‘SHIMMER’ trial in mild-to-moderate DLB, which demonstrated improvements in psychosis symptoms with zervimesine versus placebo as measured by the NPI. In a recent analysis of results from the Phase 2 study, zervimesine slowed progression of hallucinations and delusions by 89%. In July, the Company will present additional analyses from the Phase 2 study showing zervimesine’s impact on the hallucination and delusion components of the NPI at the Alzheimer’s Association’s International Conference (AAIC).
“Working with the FDA, we intend to find a path forward for a patient population that has waited too long,” said Lisa Ricciardi, president and CEO. “Our ultimate goal is to provide patients and their families with a durable treatment option for DLB psychosis that actually slows the progression of hallucinations and delusions.”
About Cognition Therapeutics
Cognition Therapeutics, Inc. is a clinical-stage biopharmaceutical company dedicated to helping millions of families seeking effective treatments for devastating neurodegenerative diseases through the development of novel, accessible therapies. The company has led pioneering research into the underlying mechanisms of degenerative nerve disorders. Our scientific approach builds on well-established biological pathways and translates across indications in which toxic oligomers drive disease progression, offering potential in dementia with Lewy bodies (DLB), Alzheimer’s disease, geographic atrophy, Parkinson’s, among others. The company’s lead candidate, zervimesine (CT1812), is an investigational once-daily oral therapy that has demonstrated promise in Phase 2 clinical trials in DLB and mild-to-moderate Alzheimer’s disease. Backed by nearly $200 million in National Institutes of Health and related foundation grants, Cognition Therapeutics continues to advance clinical research in its efforts to bring forth solutions that meet patients where they are and reduce caregiver burden. Learn more at cogrx.com.
About DLB Psychosis
Dementia with Lewy bodies (DLB) is a progressive, fatal neurodegenerative disease characterized by neuropsychiatric, cognitive and motor deficits. Up to 80% of people living with DLB experience psychosis, which manifests primarily as debilitating hallucinations and delusions. These symptoms are frequently cited as the most challenging for patients and their care partners to manage. There are no FDA-approved drugs for DLB, and the off-label use of traditional antipsychotics is often avoided due to the risk of severe and potentially life-threatening adverse reactions, underscoring a critical unmet need.
About Zervimesine (CT1812)
Zervimesine (CT1812) is currently being studied in the Phase 2 START Study (NCT05531656) in patients with MCI and early Alzheimer’s disease. Phase 2 clinical studies have concluded in dementia with Lewy bodies (DLB), mild-to-moderate Alzheimer’s disease, and geographic atrophy secondary to dry AMD. Based in part on the strong efficacy signals observed in the Phase 2 SHIMMER study in DLB (NCT05225415), the company plans to advance zervimesine into a late-stage clinical trial for people with DLB psychosis. Zervimesine has been generally well tolerated in clinical studies to date.
The USAN Council has adopted zervimesine as the United States Adopted Name (USAN) for CT1812.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. All statements contained in this press release or made during the conference, other than statements of historical facts or statements that relate to present facts or current conditions, including but not limited to, statements regarding our product candidates, including zervimesine (CT1812), and any expected or implied benefits or results, including that initial clinical results observed with respect to zervimesine will be replicated in later trials and our clinical development plans, including statements regarding our clinical studies of zervimesine, any analyses of the results therefrom, as well as statements regarding our regulatory plans, are forward-looking statements. These statements, including statements relating to the study design, timing and expected results of our clinical trials involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “should,” “expect,” “plan,” “aim,” “seek,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “forecast,” “potential” or “continue” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, some of which cannot be predicted or quantified and some of which are beyond our control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: competition; our ability to secure new (and retain existing) grant funding; our ability to grow and manage growth, maintain relationships with suppliers and retain our management and key employees; our ability to successfully advance our current and future product candidates through development activities, preclinical studies and clinical trials and costs related thereto; uncertainties inherent in the results of preliminary data, pre-clinical studies and earlier-stage clinical trials being predictive of the results of early or later-stage clinical trials; the timing, scope and likelihood of regulatory filings and approvals, including regulatory approval of our product candidates; changes in applicable laws or regulations; the possibility that we may be adversely affected by other economic, business or competitive factors, including ongoing economic uncertainty; our estimates of expenses and profitability; the evolution of the markets in which we compete; our ability to implement our strategic initiatives and continue to innovate our existing products; our ability to defend our intellectual property; the impacts of ongoing global and regional conflicts on our business, supply chain and labor force; our ability to maintain the listing of our common stock on the Nasdaq Capital Market; and the risks and uncertainties described more fully in the “Risk Factors” section of our annual and quarterly reports filed with the Securities & Exchange Commission and are available at www.sec.gov. These risks are not exhaustive and we face both known and unknown risks. You should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in a dynamic industry and economy. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties that we may face. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
This press release was published by a CLEAR® Verified individual.
Dolby Laboratories (DLB) offers a compelling risk-reward profile with high margins, robust free cash flow, and a reasonable valuation. DLB's intrinsic value is estimated near $80 per share, implying 36% upside from current levels and supporting a double-digit annual return outlook. Growth is driven by expanding automotive, mobile, and streaming partnerships, with 93% of sales from licensing and strong IP protection.
, /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE: DLB), a leader in immersive entertainment experiences, will release financial results for the second quarter (Q2) fiscal year 2026 after the close of regular trading on Thursday, April 30, 2026.
Members of Dolby management will lead a conference call open to all interested parties to discuss Q2 fiscal year 2026 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, April 30, 2026.
The conference call can be accessed by registering online at Dolby Laboratories Q2 Fiscal Year 2026 Financial Results, at which time registrants will receive dial-in information as well as a conference ID.
A live audio webcast of the conference call will be available at http://investor.dolby.com where it will be archived for one year.
About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby OptiView, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries.
Investor Contact:
Peter Goldmacher
Dolby Laboratories
[email protected]
Dolby Laboratories (NYSE:DLB – Get Free Report) has earned a consensus recommendation of “Moderate Buy” from the five brokerages that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $90.75.
Several research firms recently weighed in on DLB. Weiss Ratings reissued a “hold (c-)” rating on shares of Dolby Laboratories in a research note on Friday, March 27th. Rosenblatt Securities reissued a “buy” rating and issued a $85.00 target price on shares of Dolby Laboratories in a research note on Friday, January 30th. Barrington Research reduced their price objective on shares of Dolby Laboratories from $95.00 to $90.00 and set an “outperform” rating for the company in a research report on Monday, January 26th. Finally, Wall Street Zen cut shares of Dolby Laboratories from a “buy” rating to a “hold” rating in a research report on Saturday, January 31st.
Check Out Our Latest Research Report on Dolby Laboratories
Dolby Laboratories Stock Performance Shares of DLB stock opened at $64.63 on Friday. The company has a market capitalization of $6.17 billion, a P/E ratio of 26.06 and a beta of 0.86. The company’s 50 day moving average price is $62.97 and its two-hundred day moving average price is $64.94. Dolby Laboratories has a 52 week low of $57.62 and a 52 week high of $78.28.
Dolby Laboratories (NYSE:DLB – Get Free Report) last posted its quarterly earnings data on Thursday, January 29th. The electronics maker reported $1.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.99 by $0.07. Dolby Laboratories had a net margin of 17.97% and a return on equity of 11.50%. The company had revenue of $346.71 million for the quarter, compared to the consensus estimate of $341.26 million. During the same period last year, the company earned $1.14 earnings per share. The firm’s revenue was down 2.8% compared to the same quarter last year. Analysts forecast that Dolby Laboratories will post 2.94 earnings per share for the current year.
Dolby Laboratories Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Wednesday, February 18th. Shareholders of record on Tuesday, February 10th were given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Tuesday, February 10th. Dolby Laboratories’s payout ratio is 58.06%.
Insiders Place Their Bets In other news, SVP Shriram Revankar sold 3,000 shares of the business’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $66.14, for a total value of $198,420.00. Following the completion of the sale, the senior vice president owned 83,218 shares of the company’s stock, valued at approximately $5,504,038.52. The trade was a 3.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Ryan Nicholson sold 2,667 shares of the business’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $66.38, for a total transaction of $177,035.46. Following the completion of the sale, the chief accounting officer directly owned 36,956 shares of the company’s stock, valued at approximately $2,453,139.28. The trade was a 6.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 37.93% of the company’s stock.
Institutional Investors Weigh In On Dolby Laboratories A number of institutional investors have recently modified their holdings of the business. Paragon Capital Management Inc. bought a new stake in shares of Dolby Laboratories in the first quarter valued at about $1,306,000. Diversified Trust Co boosted its position in shares of Dolby Laboratories by 49.2% in the first quarter. Diversified Trust Co now owns 13,118 shares of the electronics maker’s stock valued at $788,000 after acquiring an additional 4,328 shares during the period. Hsbc Holdings PLC boosted its position in shares of Dolby Laboratories by 5.0% in the fourth quarter. Hsbc Holdings PLC now owns 6,301 shares of the electronics maker’s stock valued at $406,000 after acquiring an additional 301 shares during the period. Rockefeller Capital Management L.P. boosted its position in shares of Dolby Laboratories by 292.4% in the fourth quarter. Rockefeller Capital Management L.P. now owns 3,732 shares of the electronics maker’s stock valued at $240,000 after acquiring an additional 2,781 shares during the period. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of Dolby Laboratories by 73,900.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,480 shares of the electronics maker’s stock valued at $95,000 after acquiring an additional 1,478 shares during the period. Institutional investors own 58.56% of the company’s stock.
Dolby Laboratories Company Profile (Get Free Report)
Dolby Laboratories, Inc is a global leader in audio and imaging technologies, specializing in the development, licensing and deployment of solutions that enhance entertainment and communications experiences. The company’s core business revolves around creating advanced audio codecs, noise reduction systems and spatial sound technologies for a wide range of applications, including cinema, broadcast, gaming, streaming and personal devices. Dolby’s licensing model enables consumer electronics manufacturers, content creators and service providers to integrate its technologies into products such as televisions, smartphones, home theater systems and set-top boxes.
Among its flagship innovations are Dolby Atmos, an immersive audio format that delivers three-dimensional soundscapes for theaters and home systems; Dolby Digital and Dolby Digital Plus, widely adopted audio compression formats for broadcast and streaming; and Dolby Vision, a high-dynamic-range imaging technology that expands color, contrast and brightness in displays.
See Also Five stocks we like better than Dolby Laboratories
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SAN FRANCISCO, April 30, 2026 /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE: DLB) today announced the company's financial results for the second quarter of fiscal 2026. "We continue to strengthen our position and create growth opportunities across existing and new business areas," said Kevin Yeaman, President and CEO, Dolby Laboratories.
Dolby Laboratories (DLB) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.34 per share a year ago.
The headline numbers for Dolby Laboratories (DLB) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Dolby Laboratories (DLB 0.78%) stock tumbled 9.8% through 9:45 a.m. ET Friday despite beating on top and bottom lines in its fiscal Q2 2026 earnings report last night.
Heading into the report, analysts forecast the audio tech powerhouse would earn $1.33 per share on quarterly sales of $385.8 million. In fact, Dolby earned $1.37 per share, pro forma, on $396 million in sales.
Image source: Getty Images.
Dolby Q2 earnings The news wasn't quite as good as that makes it sound -- actual earnings per share, as calculated under generally accepted accounting principles (GAAP), were only $0.99, and the "$1.37" figure was non-GAAP. But even so, Dolby beat expectations, growing sales 8% year over year and earnings 5% year over year.
The news certainly could have been worse.
Unfortunately, the news on guidance was worse.
Today's Change
(
-0.78
%) $
-0.41
Current Price
$
52.32
What's next for Dolby stock A lot worse.
Dolby wrapped up its earnings report with a warning that non-GAAP profit will be only about $0.63 per share in Q3 (which is already underway) -- about a third less than the $0.98 per share Wall Street was anticipating. Full-year earnings could still hit the mark, with Dolby forecasting total 2026 non-GAAP profit between $4.30 and $4.45 per share, slightly ahead of Wall Street estimates.
Still, when measured under GAAP, Dolby expects to earn no more than $0.34 per share in Q3 and no more than $2.81 per share for the year. That's a steep sequential decline for the quarter, and for the year, it values Dolby stock at least 20 times earnings -- and possibly even higher.
For a stock growing sales and earnings only in the mid-single digits, that sounds like too high a price to pay.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dolby Laboratories. The Motley Fool has a disclosure policy.
Dolby Labs is rated a 'BUY' with a conservative $80/share price target, reflecting 17–25% annualized upside potential through 2028. DLB trades at a rare sub-15x P/E, supported by robust patent-driven recurring revenue, high margins, and a net cash balance exceeding $500M. Despite cyclical end-market exposure and recent earnings volatility, DLB's technology leadership and dominant licensing position underpin long-term revenue security.
SAN FRANCISCO, May 19, 2026 /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE:DLB) today announced that management will present at the following investor conferences: Kevin Yeaman, President and CEO, will host a presentation at the William Blair 46th Annual Growth Stock Conference in Chicago, Illinois on Wednesday, June 3, 2026, at 10:00 AM CT (11:00 AM ET). Robert Park, Senior Vice President and Chief Financial Officer, will host a presentation at the Baird Global Consumer, Technology and Services Conference in New York, New York on Thursday, June 4, 2026 at 9:40 AM ET.
SAN FRANCISCO, May 20, 2026 /PRNewswire/ -- Dolby Laboratories (NYSE: DLB), a leader in immersive entertainment, has earned two of the automotive industry's most prestigious supplier honors from General Motors: the 2025 Supplier of the Year and the Overdrive Award — GM's highest supplier recognition. It marks the first time Dolby has received either distinction, a milestone that reflects the company's leadership in redefining the in-car entertainment experience through innovations like Dolby Atmos.
/PRNewswire/ -- Dolby Laboratories (NYSE: DLB), a leader in immersive entertainment, and rednote, the leading lifestyle interest community, today announced
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The Zacks Audio Video Production industry is facing quite a few challenges. Hardware demand remains cyclical and sensitive to consumer spending. Global macroeconomic uncertainty amid escalating trade tensions, tariffs and associated inflationary pressure is likely to keep consumer spending in check. This does not bode well for the participants. A highly promotional environment and stiff competition from importers of comparatively low-priced devices are denting margins. Online accessibility of recording equipment and the availability of distribution channels on the Internet are additional headwinds.
Nonetheless, participants like Sony Group Corporation (SONY - Free Report) , Dolby Laboratories, Inc. (DLB - Free Report) , and Sonos Inc. (SONO - Free Report) are likely to benefit from investments in cutting-edge technology solutions that drive enhanced communication experiences. The industry is moving into a phase that is marked by the convergence of content creation, immersive media (spatial audio, AR/VR and 3D video) and AI-driven workflows. Streaming, creator content, gaming, spatial audio and AI-powered tools are reimagining value creation across the industry. Rapid technological advances, such as 4K, 8K and immersive audio formats, are boosting the demand for new devices, which bodes well for participants like Dolby. The players also stand to gain as they increase focus on direct-to-customer sales channels.
Industry Description The Zacks Audio Video Production industry comprises television, speaker, video player and camcorder manufacturers. It includes companies that offer gaming consoles, drones and high-end cameras for individuals and industrial markets. These firms provide state-of-the-art audio, imaging and voice technologies that enhance entertainment and communication experiences. Some industry participants develop audio and imaging products, including digital cinema servers and products for film production and entertainment industries. Apart from providing theatrical and television production services for cinema exhibitions, broadcast and home entertainment, these companies work with film studios, content creators, broadcasters and video game designers. Some prominent players are present in the music and image-based software markets worldwide.
4 Trends Shaping the Future of the Audio-Video Production Industry Technological Advancement to Spur Growth: From rapid technological advances like 4K, 8K and immersive audio formats, the demand for high-resolution visual and audio experiences is a major growth driver. The rise of streaming or OTT platforms is fueling this trend, as consumers and businesses seek to recreate a cinematic atmosphere at home. Gaming is another catalyst, as PC and console gamers now seek enhanced visuals and immersive sound design. The rise of the creator economy is also fueling the demand for enhanced cameras and editing tools. Industry players like GoPro are benefiting from this trend, as its cameras are popular among creators. Automotive audio represents another lucrative opportunity as vehicles become more software-driven and experience-focused.
Increasing Demand for Premium Entertainment: The industry performed well despite drastic changes in how media is consumed and distributed. The rise in demand for premium entertainment from record labels, TV producers and advertisers is likely to stoke profitable growth. Strong demand across all regions with a more direct-to-consumer, subscription-centric model bodes well for industry participants.
Macroeconomic Headwinds Likely to Hurt Consumer Demand: The global macroeconomic uncertainty amid escalating trade tensions and tariffs, and associated inflationary pressures, is likely to keep consumer spending, especially discretionary purchases, in check. While companies keep investing in market share gains and supply-chain resilience, a shortage of critical hardware components due to the disruption in the supply chain could hurt revenues in the near term. Fluctuations in commodity pricing for different components are additional concerns. Elevated promotional activity to boost sales amid weak spending is also affecting the performance of these industry participants.
Aggressive Competition: In the United States, smart-connected televisions, microphones and speaker enclosures are the most popular electronic devices among customers. However, U.S.-based manufacturers of audio and video systems face intense competition from importers of comparatively low-priced devices, particularly from China, Vietnam and Mexico. These firms face stiff competition across all end markets, often leading to intense price wars and margin contraction.
Zacks Industry Rank Indicates Bleak Prospects The Zacks Audio Video Production industry is housed within the broader Zacks Consumer Discretionary sector. It currently has a Zacks Industry Rank of #177, placing it in the bottom 28% of more than 247 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than two to one.
Before we present a few audio-video production stocks you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry Lags the Sector & the S&P 500 The Zacks Audio Video Production industry lags the broader Zacks Consumer Discretionary sector and the S&P 500 composite in the past year.
The industry has lost 14.8% over this period against the S&P 500’s 26.6% return. The broader sector has edged down 12.7% over the same timeframe.
One-Year Price Performance
Industry's Current Valuation Price-to-earnings is commonly used for valuing audio-video production stocks. The industry has a forward 12-month P/E of 16.45X compared with the S&P 500’s 21.43X. It is below the sector’s forward 12-month P/E of 16.8X.
In the past five years, the industry has traded as high as 23.92X and as low as 15.43X, with a median of 19.95X, as the chart below shows.
Price-to-Earnings Forward Ratio (Past Five Years)
3 Audio Video Production Stocks to Watch Sony Group Corporation: The Japan-based conglomerate designs, manufactures, and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors.
Strategic focus on entertainment and intellectual property continues to support Sony’s long-term growth strategy. Sony continues to expand its ecosystem through PlayStation, Crunchyroll, Music and Pictures while leveraging cross-platform collaborations. Crunchyroll surpassed 21 million paid subscribers by March 2026 and now offers more than 50,000 episodes in multiple languages.
Sony’s G&NS segment continues to benefit from higher user engagement and recurring digital revenues despite softer hardware demand. Monthly active users on PlayStation reached 125 million in March 2026, while total gameplay time increased year over year. Fiscal 2025 G&NS operating income increased 12% to ¥463.3 billion despite large Bungie-related impairment charges. Growth in network services, third-party software sales and favorable forex dynamics supported profitability. For fiscal 2026, Sony expects segment operating income to rise further to ¥600 billion as it focuses on long-term user monetization and service expansion.
Sony faces intense competition in each of its product lines, including television, gaming platform and smartphone, around the world. Tariff uncertainty, weak hardware demand and execution risks in newer investments could continue limiting the company’s upside potential in the near term.
At present, SONY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fiscal 2026 bottom line is pegged at $1.28 per share, down 2 cents in the past seven days. Shares have plunged 17.8% in the past year.
Price & Consensus: SONY
Dolby: San Francisco-based Dolby develops audio and imaging technologies that revolutionize entertainment for user-generated content, TV shows, films, music and gaming. Dolby continues to see strong engagement across its ecosystem of creators, distributors and device OEMs for its Dolby Atmos and Dolby Vision technologies. For fiscal 2026, management continues to expect Dolby Atmos, Dolby Vision and imaging patents to grow about 15% and represent nearly half of licensing revenues.
Dolby is extending its presence in the automotive market, driven by strong demand from OEMs to elevate in-car entertainment quality. It also previously announced a collaboration with Qualcomm to integrate Dolby Atmos and Dolby Vision into the latter’s Gen 5 Snapdragon Automotive platform. Integrations like these are aimed at expanding its footprint into the auto ecosystem.
Dolby is also building new revenue streams. The video distribution program, a patent licensing pool for imaging patents for content streamers, continues to gain traction with 40 licensors onboarded. At the same time, Dolby OptiView represents an emerging opportunity in personalized sports streaming, with early customer wins such as Genius Sports and William Hill.
Dolby maintained its full-year fiscal 2026 guidance, indicating stable business trends. The company expects total revenues in the range of $1.4 billion to $1.45 billion.
However, Dolby expects the PC segment to decline, primarily due to lower unit sales in the broader PC market. Macroeconomic uncertainties, including inflation, changes in consumer spending, volatility in memory pricing, and broader supply chain dynamics, remain concerns.
At present, DLB carries a Zacks Rank #3.The Zacks Consensus Estimate for its fiscal 2026 bottom line is pegged at $4.31 per share, unchanged in the past seven days. Shares have plunged 28.1% in the past year.
Price & Consensus: DLB
Sonos: Headquartered in Santa Barbara, CA, Sonos operates as a consumer electronics company that is primarily involved in the manufacturing of speakers with immersive sound experiences.Product innovation is reaccelerating after a deliberate pause, with launches in the pipeline for the second half of fiscal 2026. The company is benefiting from a strong product pipeline, including new launches such as Sonos Play and Era 100 SL, which are designed both to attract new customers and deepen engagement within its existing installed base. The company is also planning Amp Multi for the professional installer channel later in fiscal 2026 and describes an active pipeline across both hardware and software.
Sonos is also refining its go-to-market strategy while expanding geographically to tap underpenetrated international markets. In the fiscal second quarter, APAC revenue grew 25% year over year, EMEA jumped 21% and the Americas grew 2%.
Management guided third-quarter fiscal 2026 revenues of $355 million to $375 million and adjusted EBITDA of $20 million to $48 million, reinforcing its view that the second half will be stronger than the first.
Management has called out higher memory costs as a cause for gross margin risk as the industry shifts supply toward newer memory standards. In the fiscal second quarter, higher memory costs were about a 200-basis-point drag on gross margin. Management expects roughly a 400-basis-point year-over-year drag in its third-quarter fiscal 2026 gross margin outlook. It expects second-half gross margin to run below the prior year level, even as it pursues mitigation actions.
At present, SONO carries a Zacks Rank #3. The Zacks Consensus Estimate for its fiscal 2026 bottom line is pegged at $1.20 per share, unchanged in the past 30 days. The company’s shares have gained 52.6% in the past year.
