Executive readout · one minute
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Earnings call · FY2026 Q3
Executive readout · one minute
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Management tone
Positive
Net tone +22 · low hedging
Forward guidance
22 guided metrics
Management's latest ranges and targets are included below.
Research coverage
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From the 8-K filed Jul 30, 2026.
| Metric | Period | Guided | Basis |
|---|---|---|---|
|
Total revenue
fourth quarter of fiscal 2026
|
$362M – $392M | — | |
|
Gross margins
fourth quarter of fiscal 2026
|
90% | Non-GAAP | |
|
Gross margins
fourth quarter of fiscal 2026
|
88% | GAAP | |
|
Licensing revenue
fourth quarter of fiscal 2026
|
$335M – $365M | — | |
|
Operating expenses
fourth quarter of fiscal 2026
|
$195M – $205M | Non-GAAP | |
|
Operating expenses
fourth quarter of fiscal 2026
|
$227M – $237M | GAAP | |
|
Effective tax rate
fourth quarter of fiscal 2026
|
23% | GAAP | |
|
Diluted earnings per share
fourth quarter of fiscal 2026
|
$0.78 – $0.93 | GAAP | |
|
Effective tax rate
fourth quarter of fiscal 2026
|
21% | Non-GAAP | |
|
Total revenue
full year of fiscal 2026
|
$1.41B – $1.44B | — | |
|
Diluted earnings per share
fourth quarter of fiscal 2026
|
$1.13 – $1.28 | Non-GAAP | |
|
Licensing revenue
full year of fiscal 2026
|
$1.31B – $1.34B | — | |
|
Gross margins
full year of fiscal 2026
|
88% | GAAP | |
|
Operating expenses
full year of fiscal 2026
|
$937M – $947M | GAAP | |
|
Gross margins
full year of fiscal 2026
|
90% | Non-GAAP | |
|
Operating expenses
full year of fiscal 2026
|
$785M – $795M | Non-GAAP | |
|
Operating margins
full year of fiscal 2026
|
34% | Non-GAAP | |
|
Operating margins
full year of fiscal 2026
|
21% | GAAP | |
|
Effective tax rate
full year of fiscal 2026
|
24% | GAAP | |
|
Diluted earnings per share
full year of fiscal 2026
|
$2.62 – $2.77 | GAAP | |
|
Diluted earnings per share
full year of fiscal 2026
|
$4.25 – $4.40 | Non-GAAP | |
|
Effective tax rate
full year of fiscal 2026
|
21% | Non-GAAP |
How the reported period landed and where the business moved.
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just before it's needed, we can do a better job of targeting that ad to the viewer, it's more likely that the viewer is still there, and ultimately just increases the fill rate. And then the solution is also integrated with the player, and that prevents the ads from being blocked. So we're pretty excited about that. As I said, it became one of the – well, the first – at the time, it was the first technology to be certified by Google Ad Manager as a partner technology and that's because um it's uh it's uh designed to slot right into their workflows work seamlessly with google ad manager so as we get to the fall and are looking to scale this we're also looking forward to working with them to highlight the benefits to their customers and then i talked about last quarter about how at nab we were previewing our sports intelligence platform. And so we continue to get really good engagement from customers on what we're doing with that. We look forward to having some specific solutions in market next year. And this is really focused on now moving toward really being able to understand how engaged a fan is or when their interest is waning. But importantly, being able to do something about that with the audiovisual visual experience that keeps them engaged. So again, the vision is simply to provide our customers with the ability to better engage their fans and audiences with real-time personalized experiences. And we are really excited about how the portfolio of solutions is coming together to make that happen.
Yeah, that's great. Thank you. I guess the last one's for me. You touched a little bit on the Dolby Vision 2 and some of the, that's obviously in market now, some of the demand you're seeing there. I'd be interested if you could talk a little bit as well about the impact that Dolby Vision 2 being in the market is having on adoption of Dolby Vision 1 and possibly kind of the segmentation or the tiering that OEMs are able to do across both of those. And then also maybe just for Robert on capital allocation, if I look at kind of the repurchase activity on a quarterly basis. It looks like so far in 26, you're going at about twice the rate of 2025. Just any kind of color you could give on how you're thinking about capital allocation for the balance of this year and then going forward would be great. Thank you.
Yeah, I think so as it relates to Dolby Vision 2, I would say it's early days. I mean, again, we're focused on getting these first three customers in market, and these are all examples where they're moving from Dolby Vision to Dolby Vision 2, as you would expect, starting with some of their higher end. We do have strong engagement. And like I said, I think, you know, CES is probably about the time we'd expect for our customers to say more about their go-forward plans with Dolby Vision 2. And Robert, do you have to?
Oh, yeah. Hi, John. Yeah, thanks for noticing that we have increased the velocity and volume of our buyback activity. And we'll continue to do, you know, execute on our policy of at least offsetting dilution of stock-based comp. But we do look at this quarterly, make our decisions quarterly based on facts and circumstances and needs of the business. But yes, we have been stepping up year-to-date every quarter.
Great. Thank you, guys.
There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.
SEC filing · Item 2.02
Filed Jul 30, 2026 · complete as-filed document
SEC periodic report
Filed Jul 30, 2026 · complete as-filed document