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Dolby Laboratories (DLB) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Jul 30, 2026
Dolby Laboratories (DLB) reported revenue of $305M for the third quarter fiscal 2026 (Q3 FY26), -3% from a year earlier and -23% from the quarter before. Operating margin was 11.3%, net earnings $28.6M (9.4% of revenue).
Dolby Laboratories, Q3 FY26: revenue $305M (-3% year over year), operating margin 11.3%, net earnings $28.6M, operating cash flow $167M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $305M | -23% | -3% |
| Gross profit | $265M | -25% | -3% |
| Operating profit | $34.3M | -70% | -28% |
| Net earnings | $28.6M | -70% | -38% |
| Operating cash flow | $167M | +81% | +147% |
| Free cash flow | $152M | +83% | +149% |
What changed
Revenue was $305.0M in Q3 FY26, down 3% year over year and down 23% from the previous quarter. Broadcast was the largest line at 35% of revenue. Mobile lost $5.3M year over year (down 9%), 50% of the total change.
Gross margin was 86.8%, up 0.7 points from Q3 FY25. Operating profit was $34.3M, a 11.3% margin (down 3.8 points year over year). Operating expenses grew 3% against a revenue fall of 3%. Net earnings were $28.6M, down 38% year over year. The effective tax rate was 33.3%. Non-operating items added $9.5M, 22% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $167.5M (up 147% year over year), 573% of net income including minority interests. Non-cash charges added back $22.6M of depreciation and amortization and $31.0M of share-based compensation. Working capital and other items added $84.7M. Capital expenditures of $15.0M left free cash flow of $152.5M.
Questions
What was Dolby Laboratories' revenue in the third quarter fiscal 2026?
Dolby Laboratories (DLB) reported revenue of $305M for the third quarter fiscal 2026 (Q3 FY26), -3% from a year earlier and -23% from the quarter before.
Was Dolby Laboratories profitable in the third quarter fiscal 2026?
Operating profit was $34.3M (11.3% of revenue) and net earnings $28.6M.
Source: Dolby Laboratories 10-Q on SEC EDGAR.