Key Takeaways Revolution Medicines posted a Q1 loss of $2.29 per share, missing the consensus estimate.The company raised 2026 operating expense guidance to $1.7B-$1.8B from $1.6B-$1.7B.RVMD plans global filings for daraxonrasib after a late-stage PDAC study met all endpoints. Revolution Medicines (RVMD - Free Report) reported a first-quarter 2026 loss of $2.29 per share, wider than the Zacks Consensus Estimate of a loss of $1.83. The company had incurred a loss of $1.13 in the year-ago quarter.
Currently, RVMD does not have any approved products in its portfolio. It has yet to generate revenues.
RVMD’s Stock PerformanceShares of Revolution Medicines have surged 83% year to date compared with the industry’s nil growth.
Image Source: Zacks Investment Research
More on RVMD’s EarningsResearch and development expenses amounted to about $344 million, up 67% year over year. This significant increase was primarily driven by higher costs associated with clinical studies and manufacturing for the company’s drug candidates.
General and administrative expenses surged 189% to $101.3 million, primarily driven by higher stock-based compensation expenses, headcount costs and administrative costs, as well as increased commercial preparation activities during the quarter.
As of March 31, 2026, Revolution Medicines had cash and cash equivalents worth $1.9 billion compared with $2 billion as of Dec. 31, 2025.
RVMD Updates 2026 GuidanceThe company revised its guidance for operating expenses. It expects the figure to be between $1.7 billion and $1.8 billion (previously: $1.6-$1.7 billion), which includes non-cash stock-based compensation expense of $260-$280 million (previously: $180-$200 million).
Pipeline UpdatesRevolution Medicines is developing multiple novel drugs that target the active, GTP-bound form (or ON form) of RAS proteins, which it refers to as RAS(ON). The company’s lead pipeline drug is daraxonrasib, an investigational oral RAS(ON) multi-selective inhibitor designed to target all three major RAS mutation hotspot positions (G12, G13 and Q61). RVMD is currently evaluating daraxonrasib across four late-stage registrational studies — three in pancreatic ductal adenocarcinoma (PDAC) and one in non-small cell lung cancer (NSCLC).
Last month, RVMD reported that the RASolute 302 study, which evaluated the drug in patients with second-line metastatic PDAC, met all primary and secondary endpoints. Based on this result, the company plans to advance regulatory submissions globally. For the FDA submission, Revolution Medicines intends to use the Commissioner’s National Priority Voucher to significantly reduce the review period to just 1-2 months.
Revolution Medicines is also evaluating daraxonrasib for several other settings in PDAC. While the RASolute 303 study is assessing the drug for the first-line metastatic setting of the disease, the RASolute 304 study is evaluating its efficacy as an adjuvant therapy for patients with resectable PDAC.
Concerning NSCLC, the company is conducting the RASolve 301 study on daraxonrasib in patients with locally advanced or metastatic RAS-mutated NSCLC. It is on track to start a fifth late-stage study of the drug in the first-line NSCLC setting later this year.
While multi-selective inhibitors like daraxonrasib target several forms of RAS mutations, Revolution Medicines is developing mutant-selective inhibitors like elironrasib (targeting G12C) and zoldonrasib (targeting G12D), which are designed to suppress the growth of specific RAS-bearing cancer cells. The company is pursuing an expansive combination strategy to enhance efficacy and broaden therapeutic reach, especially in first-line settings.
In February, RVMD announced that it started the phase III RASolute 305 study evaluating the combination of zoldonrasib and the investigator’s choice of chemotherapy (either gemcitabine nab-paclitaxel or modified FOLFIRINOX) in patients with first-line PDAC. Later this year, it plans to initiate two more late-stage studies assessing a combination therapy involving the drug — one in NSCLC and another in PDAC.
To further strengthen its position in the RAS-addicted cancer space, Revolution Medicines has entered into several agreements with different companies to accelerate pipeline growth. The company has established clinical collaborations with Bristol Myers (BMY - Free Report) , Summit Therapeutics (SMMT - Free Report) and Tango Therapeutics (TNGX - Free Report) to evaluate the combinations of its RAS(ON) inhibitors with their pipeline drugs.
RVMD’s Zacks RankRevolution currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SummaryCompaniesFDA allows expanded access to Revolution Medicines' experimental pancreatic cancer drugOncologists face logistical hurdles and resource strain to enroll patients in early access programDrug targets mutation that occurs in 90% of pancreatic cancersMay 14 (Reuters) - U.S. cancer centers are scrambling to enroll patients in an early access program for a highly promising pancreatic cancer drug from Revolution Medicines (RVMD.O), opens new tab while they await what they hope will be a speedy FDA approval.
The Food and Drug Administration allowed the expanded access program on May 1, less than three weeks after Revolution said the once-daily pill, daraxonrasib, doubled survival in a clinical trial of patients with advanced pancreatic cancer, among the deadliest of cancers with one of the lowest 5-year survival rates.
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The company had asked the FDA for permission to make it available free-of-charge for patients with previously treated pancreatic cancer that has spread to other parts of the body.
"The public caught wind of the FDA announcement... which has triggered a deluge of patient requests," said Dr. Daniel King, medical oncologist at the Zuckerberg Cancer Center of Northwell Health. "Cancer centers are all figuring out how to engage with our own institutions, opening up the protocols to provide access."
Oncologists said getting approval and managing the expanded access program will take time and require cancer centers to dedicate substantial resources outside of their usual operations.
The drug was one of the first products accepted by the FDA last year for its new expedited review process, and could potentially get approval a month or two after a complete application is filed.
Revolution Medicines CEO Mark Goldsmith, speaking on a conference call last week, did not give a time frame for a full FDA submission. "There's a full-throttle effort to do it," he said.
The Redwood City, California-based company said it has already experienced high demand for the drug and expects it to remain high throughout the early-access program.
"We are actively supporting physicians through this process with safe, compliant, and rapid patient access as our top priority," Revolution said in a statement.
"All requests must be initiated by a licensed treating physician and reviewed by an institutional review board," the company said, adding that it expects to be able to respond to requests from physicians within two business days of receipt.
A BREAKTHROUGH TO BUILD ONFormer Nebraska U.S. Senator Ben Sasse recently revealed that he has Stage 4 pancreatic cancer and told the CBS news program "60 Minutes" that he is taking the Revolution drug.
The drug, which targets a genetic mutation found in about 90% of pancreatic cancers, was shown in a clinical trial to extend median survival to 13.2 months compared with 6.7 months for patients on chemotherapy.
"Doubling survival compared to best available chemotherapy is a big deal," said Dr. Gulam Manji, co-director of the pancreas center at Columbia/New York-Presbyterian. "It is not a cure, but I think that this drug is a new breakthrough we can build on."
In a 10-year career, Manji could recall seeking compassionate use of an experimental drug for just one other patient. On a recent day in the clinic, the Columbia oncologist said seven patients asked him about starting treatment with daraxonrasib.
Getting them access is not as simple as writing a prescription for an FDA-approved drug, he and other cancer specialists said.
"Patients are already aware of the press release and are already calling," said Dr. Vincent Chung, pancreas cancer specialist at City of Hope. "The challenge now is how to proceed."
The program requires physicians to submit requests for each individual patient to Revolution Medicines, Chung said, and if the company decides they are a good candidate, all those details then need to be submitted to the FDA. Hospital monitoring boards will need to follow the patients.
"Given the volume, I am not sure what will happen on the FDA side. I'm sure they don't want to have 10,000 applications at once," Chung said, adding that the agency may instead set up a more general enrollment protocol.
Manji said his understanding is that cancer centers will not be required to collect detailed data on patients treated under the expanded access program, but will need to report serious side effects or other issues.
The FDA did not respond to a request for comment. The expedited voucher program was touted as a signature achievement by Dr. Marty Makary, who resigned as FDA Commissioner on Tuesday after weeks of clashes with Trump administration officials.
Around 67,000 people in the United States will be diagnosed, opens new tab with pancreatic cancer this year, and 53,000 will die of the disease, according to the American Cancer Society.
"We are doing this as a service to our patients," Chung said. "I'm hoping of course that the FDA is going to review the data and then there is an approval much sooner than is typical."
Reporting By Deena Beasley in Los Angeles and Nancy Lapid in Tucson; additional reporting by Julie Steenhuysen in Chicago; editing by Caroline Humer and Bill Berkrot
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Nancy has been a health news reporter and editor at Reuters for more than a decade, covering important medical research advances. She is the author of our twice-a-week Reuters Health Rounds newsletter.
• Revolution Medicines stock is taking a hit today. Why is RVMD stock falling?
In May, the Food and Drug Administration (FDA) approved the company's expanded access program for its experimental pancreatic cancer drug, daraxonrasib.
In April, Revolution Medicines shared positive topline results from its Phase 3 RASolute 302 trial of daraxonrasib for metastatic pancreatic cancer.
In the RASolute 302 trial, daraxonrasib showed statistically significant improvements in progression-free survival and overall survival, both critical endpoints for cancer therapies.
Daraxonrasib demonstrated a median overall survival of 13.2 months compared to 6.7 months for standard chemotherapy.
Trial Results Drive Patient InterestDoctors across major cancer institutions said patient demand surged immediately after the announcement.
Citing data from the American Cancer Society, about 67,000 Americans are expected to be diagnosed with pancreatic cancer this year, while roughly 53,000 are projected to die from the disease.
"The public caught wind of the FDA announcement … which has triggered a deluge of patient requests," a medical oncologist told Reuters.
Former Nebraska Sen. Ben Sasse recently disclosed that he has Stage 4 pancreatic cancer and is currently taking the experimental drug.
Hospitals Face Operational ChallengesDespite growing optimism, oncologists said the compassionate use process remains complex and resource-intensive.
Doctors must submit individual patient requests to Revolution Medicines, which the company, the FDA and institutional review boards then review. Hospitals must also monitor patients receiving treatment under the program.
Reuters noted that Revolution Medicines said it expects demand to remain high throughout the program and that physician requests will receive responses within two business days.
CEO Mark Goldsmith told Reuters the company is making a "full-throttle effort" toward a complete FDA submission but did not provide a timeline for formal approval.
RVMD Price Action: Revolution Medicines shares were down 3.47% at $144.28 at the time of publication on Friday, according to Benzinga Pro.
Over the past month, RVMD has declined about 5.41% versus a 6.6% rise in the S&P 500 and is up roughly 80% year-to-date compared to the index’s 8.1% gain.
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GraniteShares has filed with the U.S. Securities and Exchange Commission to launch three new leveraged single-stock ETFs tied to high-volatility themes spanning nuclear energy, AI infrastructure and biotech.
• What’s going on with XE stock today?
The filing introduces the GraniteShares 2x Long XE Daily ETF, GraniteShares 2x Long MAIR Daily ETF and GraniteShares 2x Long RVMD Daily ETF, each designed to deliver 200% of the daily performance of their respective underlying stocks.
The filing highlights how issuers continue expanding beyond leveraged funds tied to mega-cap names such as Nvidia and Tesla, moving deeper into speculative and momentum-driven corners of the market.
GraniteShares also emphasized that the products are intended primarily for sophisticated investors and active traders capable of monitoring positions daily, underscoring the growing risks associated with leveraged single-stock products as retail demand for high-beta trades remains elevated.
Key Features Of The Proposed ETFs• Each fund seeks to provide 200% of the DAILY performance of its underlying stock.
• GraniteShares said the funds may use:
Swaps Deep in-the-money call options FLEX options Synthetic forwards Firect stock holdings •The issuer indicated swaps would likely serve as the primary mechanism for obtaining leveraged exposure.
• The filing says the funds are designed for active traders and investors who can monitor positions daily.
Ticker symbols have not been disclosed yet.
These ETFs arrive as markets lean harder into AI infrastructure expansion, nuclear power revival and biotech momentum trades, with data center energy demand and next-gen chip buildouts driving renewed interest in high-volatility thematic baskets. Leveraged single-stock products have also seen rising traction as traders increasingly rotate into "high-beta" expressions of structural themes rather than broad index exposure.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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REDWOOD CITY, Calif., May 21, 2026 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a late-stage clinical oncology company developing targeted therapies for patients with RAS-addicted cancers, today announced that members of Revolution Medicines’ senior management team will host a webcast on Sunday, May 31 at 7:00 pm ET to discuss positive results from the Phase 3 RASolute 302 clinical trial evaluating daraxonrasib in patients with previously treated metastatic pancreatic ductal adenocarcinoma (PDAC) following presentation of the data during the Plenary Session at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting.
To listen to the live webcast, or access the archived webcast, please visit: https://ir.revmed.com/events-and-presentations. Following the live webcast, a replay will be available on the company’s website for at least 14 days.
About Revolution Medicines, Inc.
Revolution Medicines is a late-stage clinical oncology company developing novel targeted therapies for patients with RAS-addicted cancers. The company’s R&D pipeline comprises RAS(ON) inhibitors designed to suppress diverse oncogenic variants of RAS proteins. The company’s RAS(ON) inhibitors daraxonrasib (RMC-6236), a RAS(ON) multi-selective inhibitor; elironrasib (RMC-6291), a RAS(ON) G12C-selective inhibitor; zoldonrasib (RMC-9805), a RAS(ON) G12D-selective inhibitor; and RMC-5127, a RAS(ON) G12V-selective inhibitor, are currently in clinical development. Additional development opportunities in the company’s pipeline focus on RAS(ON) mutant-selective inhibitors, including RMC-0708 (Q61H) and RMC-8839 (G13C). For more information, please visit www.revmed.com and follow us on LinkedIn.
Few cancers have proven as difficult to treat as pancreatic cancer, making any sign of a survival breakthrough a major event for both patients and investors.
Revolution Medicines RVMD moved higher in US premarket trading after fresh data added more weight to the story around daraxonrasib, its experimental pancreatic cancer drug. The new results showed the once-daily pill delayed worsening painful symptoms for more than nine months, compared with slightly less than four months for chemotherapy. That matters because Revolution Medicines had already disclosed that daraxonrasib extended survival to 13.2 months in a late-stage study. The shares rose 12% in US premarket trading Monday and had nearly doubled since the start of the year through Friday's close.
The bigger investor story is that daraxonrasib could be one of the more important early attempts to broadly target RAS, a protein tied to tumor growth and mutated in most pancreatic cancers. Researchers said the benefit extended across patient groups with different genetic mutations, giving the drug a broader clinical profile than a narrow mutation-specific therapy. Still, the data did not suggest a cure. Tumors resumed significant growth after about seven months on average, and the drug carried side effects including rash and mouth sores, though these were rarely severe enough to make patients stop treatment. Because daraxonrasib is taken as a once-daily pill, it could also give patients more time at home instead of receiving chemotherapy at an infusion center.
Johnson & Johnson JNJ also presented data that could possibly shift how some high-risk early-stage prostate cancers are treated. In a study of more than 2,100 patients, Erleada plus hormone therapy and surgery reduced the risk of tumors spreading to distant organs by 20% over five years compared with hormone-suppressing drugs and surgery alone. Researchers said the finding could transform treatment for some early-stage prostate cancers currently handled with surgery alone, with about 60,000 US patients a year falling into the early-stage but high-risk category.
Key Takeaways Revolution Medicines reported phase III data showing daraxonrasib cut death risk by 60% in PDAC.RVMD's daraxonrasib doubled median overall survival versus standard-of-care chemotherapy in the study.Revolution Medicines reported significant progression-free survival gains and a manageable safety profile. Shares of Revolution Medicines (RVMD - Free Report) were rising in pre-market today after the company reported full results from the phase III RASolute 302 study, which evaluated lead candidate daraxonrasib in previously treated patients with metastatic pancreatic ductal adenocarcinoma (PDAC). These findings were also presented at the 2026 ASCO Annual Meeting yesterday and simultaneously published in the New England Journal of Medicine.
Though Revolution Medicines previously reported in April that the study met all primary and secondary endpoints based on interim analysis, the latest findings provide a more comprehensive look at the drug’s clinical benefit.
RVMD’s Detailed RASolute 302 Data Highlights Treatment AdvantageThe study enrolled a broad patient population, including those with diverse RAS mutations, particularly G12 variants, as well as those without identifiable RAS mutations. Participants were randomized to receive either 300 mg of oral daraxonrasib once daily or standard-of-care cytotoxic chemotherapy delivered intravenously. The primary endpoints included overall survival (OS) and progression-free survival (PFS) in patients with RAS G12-mutant tumors, while key secondary endpoints assessed these outcomes in the overall study population.
Across the RAS G12 population, daraxonrasib reduced the risk of death by 60% compared with standard chemotherapy and achieved a median OS of 13.2 months compared to 6.6 months for chemotherapy. The drug also demonstrated a significant benefit on PFS, with median PFS improving to 7.3 months from 3.5 months with chemotherapy.
Similar benefits were seen across the overall study population. Daraxonrasib reduced the risk of death by 60% and improved median OS to 13.2 months compared with 6.7 months for chemotherapy. Median PFS stood at 7.2 months for daraxonrasib versus 3.6 months with chemotherapy.
The drug was generally well-tolerated and demonstrated a manageable safety profile. Management noted that patients receiving daraxonrasib experienced meaningful improvements in patient-reported outcomes, including significant delays in the deterioration of cancer-related pain, overall global health status and quality of life.
Per Revolution Medicines, these findings strengthen daraxonrasib's potential to become a new treatment option for previously treated metastatic PDAC, a setting where effective therapies remain limited.
Based on the above data, the company intends to advance regulatory submissions globally. For the FDA submission, RVMD plans to use the Commissioner’s National Priority Voucher to significantly cut down the review period to just 1-2 months.
RVMD Stock’s Price PerformanceYear to date, the company’s shares have risen 98% compared with the industry’s nil growth.
Image Source: Zacks Investment Research
More on RVMD’s DaraxonrasibDaraxonrasib is designed to target a broad spectrum of RAS-driven cancers, including PDAC, non-small cell lung cancer (NSCLC) and colorectal cancer.
Apart from RASolute 302, Revolution Medicines is evaluating daraxonrasib for several other settings in PDAC. While the RASolute 303 study is assessing the drug for the first-line metastatic setting of the disease, the RASolute 304 study is evaluating its efficacy as an adjuvant therapy for patients with resectable PDAC.
Concerning NSCLC, the company is conducting the RASolve 301 study on daraxonrasib in patients with locally advanced or metastatic RAS-mutated NSCLC. It is on track to start a fifth late-stage study of the drug in the first-line NSCLC setting later this year.
To further strengthen its position in RAS-driven cancers, Revolution Medicines has established multiple clinical collaborations to evaluate daraxonrasib and its other RAS inhibitors in combination regimens. These partnerships include collaborations with Bristol Myers (BMY - Free Report) , Summit Therapeutics (SMMT - Free Report) and Tango Therapeutics (TNGX - Free Report) .
RVMD’s Zacks Rank
Revolution Medicines currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revolution Medicines (RVMD +3.13%) looks unstoppable. The clinical-stage biotech company has been riding the wave of impressive clinical progress, sending its stock price up nearly 100% this year alone and about 285% over the past 12 months, as of this writing. The market clearly has high hopes for Revolution Medicines, but can the company live up to the expectations? Let's consider the bull and the bear case for this drugmaker.
The bull case: revolutionizing the cancer market Revolution Medicines focuses on developing drugs for RAS-addicted cancers. RAS is a family of proteins that act as molecular switches in controlling cell growth. They can be turned "on" or "off." In RAS-addicted cancers, mutations keep RAS stuck in the "on" position, and the cancer cells become dependent on that constant growth signal to proliferate. Revolution Medicines is targeting this category because it is a vast, high-unmet-need space. The company's targets include pancreatic cancer, colorectal cancer -- the second leading cause of cancer death in the world -- as well as the first on that list, lung cancer.
Image source: Getty Images.
Revolution Medicines may not have any products on the market, but its leading candidate, daraxonrasib, has already shown strong clinical trial results. In a phase 3 study that enrolled patients with previously treated metastatic pancreatic cancer, daraxonrasib posted an overall survival of 13.2 months, compared with 6.7 months for patients on chemotherapy. Being tested against the standard of care (not just against a placebo) in this study suggests that daraxonrasib could become the new standard of care in patients in this niche.
Revolution Medicines is running clinical trials for daraxonrasib in other indications, including a phase 3 study in non-small cell lung cancer (NSCLC). Revolution Medicines has other candidates as well. The company's zoldonrasib is being studied in NSCLC. Provided these candidates receive approval, Revolution Medicines could be looking at peak sales of well over $1 billion for both, if all goes well. For instance, some analysts predict that daraxonrasib could eventually generate $8.5 billion in revenue annually in the metastatic pancreatic cancer market alone. And if it earns approval across many other fields, it could peak at much higher levels than that. That's why the market is excited about Revolution Medicines' prospects.
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The bear case: What if something goes wrong? Revolution Medicines faces the same risks as other clinical-stage biotechs. The company generates no revenue and is consistently unprofitable. Clinical and regulatory setbacks with its leading candidate will sink the stock price. Further, Revolution Medicines is worth $33.6 billion. That's an almost unheard-of valuation for a clinical-stage biotech. By comparison, consider that Biogen, a well-established biotech company with a large drug portfolio and a solid pipeline, has a market cap of only $29.3 billion. So, the market thinks Revolution Medicines is worth about $4 billion more than Biogen.
On the one hand, it makes some sense. The market is, after all, forward-looking. And while Biogen has struggled in recent years and has a somewhat dim outlook, Revolution Medicines appears to have developed medicines that could establish dominant positions in one of the industry's largest therapeutic areas, typically dominated by pharmaceutical giants. The company's most advanced drug is significantly de-risked, too, having aced a phase 3 study on efficacy measures while showing a reasonable safety profile.
Still, at current levels, Revolution Medicines' success is already well-baked into the stock price, and any perceived issue will send its shares off a cliff. In other words, Revolution Medicines is a risky stock. My view is that interested investors should wait for a pullback before initiating a small position in the company and progressively add to it as the drugmaker continues to make clinical progress.
A diagnosis of pancreatic cancer is one of the most feared things in medicine. The disease has the highest mortality rate of all cancers. In 2026, roughly 67,530 Americans will be diagnosed with the disease in the U.S., and more than 52,740 will die from it, according to statistics from the Hirshberg Foundation for Pancreatic Cancer Research.
On May 31, Revolution Medicines (RVMD +3.13%) presented its Phase 3 trial findings for daraxonrasib, showing that this therapy, compared to chemotherapy, cut the risk of death by about 60% and more than doubled survival for patients with advanced pancreatic cancer.
It is the first time any drug has pushed median overall survival past the one-year threshold in a Phase 3 trial for metastatic pancreatic cancer. On hearing that news, oncologists at a conference gave Revolution a standing ovation.
It was a huge moment for the clinical-stage biotech. The stock is up more than 85% this year, as its name has been bandied about as a potential buyout target. Even if that doesn't happen because the stock's value has increased so much, the company is sitting on a very profitable drug.
There are three reasons why the stock remains a buy:
Image source: Getty Images.
1. There is a clear commercial runway for daraxonrasib Revolution Medicines is no longer just a distant pipeline story; it has entered the pre-commercial execution phase. After releasing the data, the company is advancing a rolling New Drug Application (NDA) submission for daraxonrasib with the Food and Drug Administration (FDA).
The FDA has already approved an Expanded Access Program for daraxonrasib, creating massive immediate demand from major U.S. cancer centers rushing to secure the drug for terminal patients ahead of official commercialization. The drug works by blocking the RAS protein, which drives tumor growth in more than 90% of pancreatic cancer cases, as well as other cancers.
Just having the treatment for pancreatic cancer is worth billions, but the drug is also being tested as a therapy to treat other RAS-addicted cancers, including certain colorectal and non-small cell lung cancers.
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2. Revolution has a diverse, plural pipeline Biotech investing is notoriously risky when a company relies on a single asset. Revolution mitigates that problem with a portfolio of RAS inhibitors addressing different mutations and indications.
Besides daraxonrasib, the company is advancing zoldonrasib (RMC-9805) for KRAS G12D mutants (showing highly encouraging initial data in non-small cell lung cancer) and elironrasib (RMC-6291), targeting KRAS G12C mutations.
The science behind the company's therapies is the ability to use its platform to block oncogenic signaling by RAS(ON) proteins, which are traditionally difficult targets. The company designs molecules that bind to the "chaperone protein" cyclophilin A, forming an interface that can be tailored to bind to different RAS(ON) proteins.
3. Revolution has a big cash stockpile and takeover possibilities Revolution isn't profitable. In the first quarter, the company reported a loss of $453.8 million. However, the company has roughly $4 billion in cash and short-term investments. At its current burn rate, it has two years to bring daraxonrasib to market without needing to dilute shareholders with late-stage capital raises.
That gives the company flexibility to go it alone, using daraxonrasib sales to fund its development, or court larger pharmaceutical companies that would love to buy out Revolution for the opportunity to inherit its platform.
Revolution backed away from a buyout deal from Merck in January that would have valued Revolution at between $28 billion and $32 billion. It's easy to see now why, as the stock's market cap is already over $32 billion. There are other pharmaceutical giants with drugs facing patent cliffs that could pursue a takeover of Revolution.
Revolution Medicines has great potential with some risk Revolution is the classic high-risk, high-reward biotech stock. If daraxonrasib doesn't come to market by the end of the year, the stock could easily plunge. It's important to note that the ability to develop a successful drug is a different skill set from running a successful company.
There's plenty of reason for optimism here. The stock, even after the run-up, is trading at around $148 per share, well below analysts' average price targets, which range between $165 and $182.
It remains a high-conviction play purely on execution, commercial rollout, and potential future interest from larger pharma suitors looking to bolster their oncology pipelines.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) today reported first quarter 2026 net income of $171 million, or $1.91 per share, and net income of $215 million, or $2.40 per share, excluding special items. First quarter net sales were $2.4 billion in 2026 and $2.1 billion in 2025. Diluted earnings per share attributable to Packaging Corporation of America shareholders Three Months Ended March 31, 2026 2025 Change .
While the top- and bottom-line numbers for Packaging Corp. (PKG) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Packaging Corp. (PKG) came out with quarterly earnings of $2.4 per share, beating the Zacks Consensus Estimate of $2.17 per share. This compares to earnings of $2.31 per share a year ago.
Packaging Corporation of America delivered strong Q1 results, with EPS of $2.40 beating guidance and revenue up 11% to $2.4 billion. PKG continues to gain market share but faces margin pressure from elevated input and freight costs and risks from sustained energy inflation. Q2 guidance of $2.33 EPS is below consensus, driven by planned maintenance outages and higher corporate expenses, but underlying demand remains robust.
Cwm LLC reduced its stake in shares of Packaging Corporation of America (NYSE: PKG) by 35.4% in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 19,847 shares of the industrial products company's stock after selling 10,873 shares during the
Key Takeaways Packaging Corp beats Q1 EPS estimates as pricing, mix, and lower fiber costs lift results.PKG Packaging segment drives growth with 11.1% sales rise and higher operating profit year over year.Margins shrink as costs climb and special charges tied to closures and acquisitions weigh on profits. Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The result beat the Zacks Consensus Estimate of $2.17 by 10.6%.
Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported adjusted results, though special items weighed on reported profitability. Lower-than-expected earnings from the recently acquired Greif Inc.(GEF - Free Report) business also impacted sales. The Grief operations generated a loss of 6 cents per share during the quarter.
PKG’s Segmental PerformancePKG’s Packaging segment remained the primary growth engine. Segment sales increased 11.1% year over year to $2.19 billion in the quarter, reflecting stronger top-line momentum relative to the consolidated growth rate. Our model predicted the segment’s sales to be $2.21 billion for the quarter. Adjusted operating profit for the segment was $316.5 million compared with $284 million in the prior-year quarter.
The Paper segment delivered more modest expansion, with sales of $159.9 million compared with $154.2 million a year ago. We expected sales of $151 million for the Paper segment. Adjusted operating profit for the segment was $33 million compared with $36 million in the prior year quarter.
Packaging Corp. Margin Pressures Hit Reported ProfitDespite the double-digit sales increase, profitability metrics showed mixed movement on a reported basis. Gross profit was $453 million compared with $455 million in the prior-year quarter, while cost of sales climbed to $1.91 billion year-over-year from $1.69 billion. The gross margin came in at 19.1% in the first quarter of 2026 compared with 21.2% in the prior year quarter.
Below the gross line, selling, general and administrative expenses rose to $180.3 million from $161.4 million, while other expenses, net, increased to $21.3 million from $13.0 million.
PKG’s Special Items Lift Adjusted ComparisonsA key swing factor between reported and adjusted performance was special items recorded during the quarter. Special items totaled $44.3 million after tax.
The largest item was $53.3 million of charges tied to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, WA, containerboard mill. PKG recorded $3.4 million of acquisition and integration-related costs and $2.9 million of facilities closure and other costs, which together added to the gap between reported and adjusted earnings.
Packaging Corp Cash Position Declines as Spending RisesCash, cash equivalents and marketable debt securities ended the quarter at $615.5 million, down from $914.4 million at the end of the prior-year quarter.
Capital spending rose to $164.7 million from $148.1 million in the year-ago period. Meanwhile, diluted weighted average shares outstanding were 89.1 million versus 89.6 million a year earlier, providing a small offset to per-share comparisons.
PKG’s OutlookPKG expects strong demand in the Packaging segment in the second quarter, with higher corrugated volumes supported by an extra shipping day and seasonal improvement. Prices for containerboard and corrugated products should rise due to earlier announced increases and a better product mix. Production at packaging mills will be slightly higher, though maintenance-related costs will increase. In the Paper segment, the company expects volumes to stay flat, but prices to increase.
The company expects second-quarter adjusted earnings to be around $2.33 per share.
Packaging Corp. Stock’s Price PerformancePackaging Corp’s shares have gained 11.5% over the past year against the industry’s decline of 11.1%. In comparison, the broader Zacks Industrial Products sector has increased 38% and the S&P 500 grew 35.9%.
Image Source: Zacks Investment Research
PKG’s Zacks RankPackaging Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Packaging Stocks Awaiting ResultsAptarGroup, Inc. (ATR - Free Report) is scheduled to release first-quarter 2026 results on April 30. The Zacks Consensus Estimate for ATR’s first-quarter 2026 earnings is pegged at $1.15 per share, indicating a year-over-year dip of 4.2%.
The consensus estimate for AptarGroup’s top line is pegged at $963 million, indicating an 8.5% increase from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 3.1%.
Silgan Holdings (SLGN - Free Report) is scheduled to report first-quarter 2026 results on April 29. The Zacks Consensus Estimate for SLGN’s first-quarter 2026 earnings is pegged at 74 cents per share, indicating a year-over-year dip of 9.8%.
The consensus estimate for Silgan’s top line is pegged at $1.49 billion, indicating an increase of 1.8% from the prior year’s actual. SLGN has a trailing four-quarter average earnings surprise of 1.8%.
Net Income: $171 million or $1.91 per share; excluding special items, $215 million or $2.40 per share.Net Sales: $2.4 billion in Q1 2026, up from $2.1 billion
Shares of Packaging Corporation of America (NYSE: PKG - Get Free Report) rose 6.4% on Thursday following a better than expected earnings announcement. The stock traded as high as $218.78 and last traded at $218.3440. Approximately 368,158 shares changed hands during trading, a decline of 64% from the average daily volume of 1,023,421 shares. The stock
Packaging Corporation of America (NYSE: PKG) reported first-quarter 2026 net income of $171 million, or $1.91 per share, with results affected by special items tied primarily to mill restructuring and acquisition integration. Excluding special items, the company posted net income of $215 million, or $2.40 per share, up from $208 million, or $2.31 per share, in
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) announced today that it intends to increase the quarterly cash dividend on its common stock to an annual payout of $6.00 per share from $5.00 per share, a 20% increase. The first quarterly dividend of $1.50 per share will be paid to shareholders of record as of June 15, 2026 with a payment date of July 15, 2026. Future declaration of quarterly dividends and the establishment of future record and payment dates are s.
Key Takeaways PAG will pay a $1.42 dividend on June 6 and has raised payouts 21 times in five years.PKG declared a $1.50 dividend for July 15, with a current dividend yield of 2.29%.MAR and TKR announced dividends on May 8 as inflation and tariffs keep markets volatile. Stocks have rallied lately, but the economy is facing several challenges that are impacting its health and weighing on investors’ sentiment. Uncertainty over an end to the Iran conflict, sky-high inflation and the impact of tariffs are weakening the economy.
Given the uncertainty, cautious investors looking for steady income and ways to protect their capital may consider holding or investing in dividend-paying stocks.
Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Four such stocks are: Penske Automotive Group, Inc. (PAG - Free Report) , Packaging Corporation of America (PKG - Free Report) , Marriott International, Inc. (MAR - Free Report) and The Timken Company (TKR - Free Report) . Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Uncertainty ContinuesStocks rallied on Thursday after a key meeting between President Donald Trump and Chinese Premier Xi Jinping. The two world leaders discussed several issues, including ways to end the Iran war and allowing a smooth passage to vessels sailing through the Strait of Hormuz.
However, no concrete solution was found. A ceasefire has been in place for more than two weeks now, but neither the United States nor Iran has agreed to a second round of peace talks.
Energy costs have climbed rapidly since the Iran conflict began. Gasoline prices jumped 21.2% in March before increasing another 5.4% in April. Meanwhile, food prices rose 0.5% in April, with grocery prices advancing 0.7% during the month — the sharpest increase since August 2022.
Inflation rose for the second straight month in April. The consumer price index (CPI) rose 0.6% sequentially in April after rising 0.9% in March, the Bureau of Labor Statistics reported earlier this week. On a yearly basis, CPI climbed 3.8% in April, marking its highest level since May 2023.
Core CPI, which strips out volatile food and energy costs, advanced 0.4% month over month and was up 2.8% compared with a year earlier. The rise in inflation during April was largely driven by a 3.8% surge in energy prices, which contributed nearly 40% of the overall increase.
Also, higher tariffs are hurting consumer spending. These uncertainties could keep markets volatile for a longer period.
4 Stocks That Recently Announced Dividend HikesPenske Automotive GroupPenske Automotive Group, Inc. engages in the operation of automotive and commercial truck dealerships in the United States, the United Kingdom, Canada, Germany, Italy and Japan. PAG also distributes and retails commercial vehicles, diesel engines, gas engines, power systems and related parts and services, principally in Australia and New Zealand.
On May 13, Penske Automotive Group announced that its shareholders would receive a dividend of $1.42 a share on June 6. PAG has a dividend yield of 3.36%. Over the past five years, Penske Automotive Group has increased its dividend 21 times, and its payout ratio presently sits at 43% of earnings. Check Penske Automotive Group’s dividend history here.
Packaging Corporation of AmericaPackaging Corporation of America is the third-largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PKG operates 10 mills and 91 corrugated products manufacturing plants.
On May 12, Packaging Corporation of America declared that its shareholders would receive a dividend of $1.50 a share on July 15. PKG has a dividend yield of 2.29%. Over the past five years, Packaging Corporation of America has increased its dividend twice, and its payout ratio presently sits at 50% of earnings. Check Packaging Corporation of America’s dividend history here.
Marriott InternationalMarriott International, Inc. is a leading worldwide hospitality company focused on lodging management and franchising after the spin-off of its timeshare business into a publicly traded company in November 2011.
On May 8, Marriott International announced that its shareholders would receive a dividend of $0.73 a share on June 30. MAR has a dividend yield of 0.77%. Over the past five years, Marriott International has increased its dividend six times, and its payout ratio presently sits at 26% of earnings. Check Marriott International’s dividend history here.
The Timken Company The Timken Company is a global manufacturer of engineered bearings and industrial motion products and related services. TKR serves a wide variety of end markets, including aerospace, automotive, construction, consumer, defense, energy, industrial equipment, health, heavy industry, machine tool, positioning control, power generation and rail markets.
On May 8, The Timken Company declared that its shareholders would receive a dividend of $0.36 a share on May 29. TKR has a dividend yield of 1.21%. Over the past five years, The Timken Company has increased its dividend six times, and its payout ratio presently sits at 25% of earnings. Check The Timken Company’s dividend history here.
Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Karat Packing (KRT) and Packaging Corp. (PKG). But which of these two companies is the best option for those looking for undervalued stocks?
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America's (NYSE: PKG) Chief Executive Officer, Mark Kowlzan, will speak at Wells Fargo's 16th Annual Industrials and Materials Conference being held at Loews Chicago in Chicago, IL on Wednesday, June 10, 2026 at 8:45am CST. After Mr. Kowlzan's Fireside Chat, he and Executive Vice President and CFO, Kent Pflederer will participate in a Q&A session. Immediately following, they will be hosting a series of 1 x 1 meetings. For those in.
Packaging Corporation of America's (NYSE: PKG) Chief Executive Officer, Mark Kowlzan, will speak at Wells Fargo's 16th Annual Industrials and Materials Confere
Wednesday is garbage day where I live, and because of how recycling works here, we have four separate bins. One for solid waste, one for "containers" - bottles and cans, one for compost (grass clippings basically), and one for paper. These last two are the largest, but even so, somehow the one for paper is never big enough. We get everything delivered now, and everything delivered comes in a box. Sure enough today, no matter how much I folded and stuffed, a lot of the cardboard ended up next to the paper bin when there was no more room in it... which got me thinking.
Packaging Corp of America (PKG) is an old-school, brick-and-mortar industrial business. They make corrugated boxes, containerboard, and shipping materials. Perhaps it sounds unsexy, like a relic of the past (the company's origins are more than a century old), but consider how the world actually works right now.
We live in a new age dominated by digital commerce. Every single click on a mobile app, every online shopping binge, and every supply chain shipment fundamentally relies on one thing: a box. Tech may create the order, but old industrials package it up. It's the eyesore sitting on my curb right now.
The stock is up a relatively modest 9% in 2026, but management just boosted the annual dividend by 20% to $6.00 per share, and the street consensus is the company earns 12.30 in adjusted EPS next year - roughly 18% growth YoY. With the stock trading around $225, you get a solid yield. But in a choppy, sideways macro environment, why just sit there and collect a standard payout? You can supercharge this old-economy horse using a classic, straightforward (dare I say "box stock") buy-write strategy.
Packaging Corp of America (PKG), YTD
We actually have a "double distribution" fund. Here's an example of how you can manufacture a "double dividend."
Here is the play:
The Stock: Buy shares of Packaging Corp of America (PKG) at the current market price of around $225.The Option: Simultaneously sell (write) the July $250 Call against your shares.The Premium: Target a sale price of $2.25 per contract.Skill level: BeginnerBy collecting that $2.25 option premium, you are pocketing an immediate cash yield equal to roughly 1% of the stock price in roughly 6 weeks.
Think about the math here. You capture the underlying stock, you position yourself for the newly increased $1.50 quarterly dividend payout, and you layer on an additional $2.25 in pure options income. If the stock trades flat or pushes moderately higher, that premium is yours to keep, effectively letting you double up on the income this name generates. Buy writing is also a great introductory strategy for anyone looking to make their first options trade.
If the market catches fire and PKG blasts past $250 by July expiration? You get called away. But guess what? You just locked in an 11% capital gain from equity appreciation, alongside your premium and dividend, in which case we can recycle another options strategy to write our way back into the name.
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
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Current Price
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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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