Zacks cuts Dolby Laboratories stock to Strong Sell

Published on 10/20/2026 at 21:58 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Dolby's next results are due November 17, 2026 after Q3 revenue fell 3.3 percent. Dolby Laboratories stock costs EUR 55.35 on October 20, 2026.

Analyst stance and reporting date

Zacks Research cut Dolby Laboratories from Hold to Strong Sell on October 17, 2026.
Dolby Laboratories will release fourth-quarter fiscal 2026 results on November 17, 2026.
Dolby Laboratories stock costs EUR 55.35 at Lang & Schwarz on October 20, 2026 at 9:50 p.m. CEST.

DLB, US25659T1079, Illustration mit AI erstellt.

Dolby Laboratories (ISIN US25659T1079) faced a sharper analyst warning on October 17, 2026, when Zacks Research cut its rating from Hold to Strong Sell, as MarketBeat reported. Dolby Laboratories stock was trading at EUR 55.35 at Lang & Schwarz on October 20, 2026 at 9:50 p.m. CEST.

Zacks turns more cautious

The downgrade contrasts with the broader consensus cited by MarketBeat, which remained Hold with an average target of USD 87.50 from four analysts on October 16, 2026. Against Dolby's USD 62.31 primary-market quote at 3:57 p.m. UTC on October 20, that target implies 40.41 percent upside in the same currency.

Zacks' change matters because it places a negative view beside a target structure that still assumes a materially higher valuation. MarketBeat also listed a USD 5.71 billion market capitalization, a P/E ratio of 25.94 and a 2.36 percent dividend yield on October 16, 2026.

Revenue fell in fiscal third quarter

Dolby reported USD 304.995 million of total revenue for the third quarter of fiscal 2026, down from USD 315.546 million in the year-earlier quarter, according to the reproduced company release at RBC Richardson Barr on July 30, 2026. GAAP net income fell to USD 29 million from USD 46 million, while non-GAAP net income declined to USD 65 million from USD 76 million.

The same release reported adjusted earnings per share of USD 0.69, above the USD 0.67 estimate cited by Sept Investing. Revenue, however, was below the USD 311.960 million estimate, creating a mixed quarterly comparison rather than a one-direction result.

November 17 is the next date

Dolby will release fourth-quarter and full-year fiscal 2026 results after the close on November 17, 2026, with a conference call at 5:00 p.m. ET, according to MarketScreener on October 12, 2026. That date gives investors the next scheduled test for revenue recovery and earnings conversion.

Stock position and valuation

Dolby's primary listing is on the NYSE, where the stock's October 20 quote reached USD 62.31, compared with a 52-week range of USD 48.26 to USD 69.95 and volume of 365,896 shares. Its fiscal 2025 revenue was USD 1.349 billion, up from USD 1.274 billion in fiscal 2024, while net income eased to USD 255.0 million from USD 261.8 million.

Dolby's business spans audio and visual technologies used in film, television, streaming, music, sports, gaming and communications. The next results will put the recent quarterly revenue decline against the company's broader fiscal-year scale.

Current stock position

The euro quotation gives investors in Germany a late-session view, while the analyst split leaves the November report as the next concrete valuation test.

The further course of trading is shown by the continuously updated real-time quote of Dolby Laboratories stock.