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Dec 26, 2025
Dolby Q1 2026 Earnings Report
Dolby Laboratories reported its financial results for the first quarter of fiscal 2026, showing a slight decrease in total revenue compared to the prior year, alongside a reduction in GAAP net income and diluted EPS, while non-GAAP net income and diluted EPS also saw a decline.
Key Takeaways
Dolby Laboratories announced its first quarter fiscal 2026 financial results, with total revenue reaching $347 million, a decrease from $357 million in the first quarter of fiscal 2025. GAAP net income was $53 million, or $0.55 per diluted share, down from $68 million, or $0.70 per diluted share in the prior year. Non-GAAP net income was $103 million, or $1.06 per diluted share, compared to $111 million, or $1.14 per diluted share in the first quarter of fiscal 2025.
Total revenue for Q1 fiscal 2026 was $347 million, a decrease from $357 million in Q1 fiscal 2025.
GAAP net income for the quarter was $53 million ($0.55 per diluted share), down from $68 million ($0.70 per diluted share) in the prior year.
Non-GAAP net income was $103 million ($1.06 per diluted share), compared to $111 million ($1.14 per diluted share) in Q1 fiscal 2025.
Dolby repurchased approximately one million shares of its common stock for $70 million, with $207 million of stock repurchase authorization remaining.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Dolby Laboratories provided estimates for the second quarter and full year of fiscal 2026, anticipating total revenue between $375 million and $405 million for Q2, and $1.4 billion to $1.45 billion for the full year. Diluted EPS is projected to be $0.94 to $1.09 (GAAP) and $1.29 to $1.44 (non-GAAP) for Q2, and $2.71 to $2.86 (GAAP) and $4.30 to $4.45 (non-GAAP) for the full year.
Positive Outlook
- Q2 2026 total revenue is estimated to range from $375 million to $405 million.
- Full year fiscal 2026 total revenue is expected to range from $1.4 billion to $1.45 billion.
- Q2 2026 non-GAAP diluted earnings per share is anticipated to range from $1.29 to $1.44.
- Full year fiscal 2026 non-GAAP diluted earnings per share is anticipated to range from $4.30 to $4.45.
- Gross margins are anticipated to be approximately 90% on a GAAP basis and 91% on a non-GAAP basis for Q2 2026.
Challenges Ahead
- The financial outlook relies on estimates of royalty-based revenue, which is subject to uncertainty, including consumer demand for electronic products.
- Actual results could differ materially due to uncertainty from macroeconomic effects, trade restrictions, and changes in trade or diplomatic relationships.
Revenue & Expenses
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Historical Earnings Impact
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