Dolby Labs Q4 Revenue Drops 2.9% to $346.7M with $1.06 EPS
Dolby Laboratories posted $346.71 million in Q4 2025 revenue, down 2.9% year over year, and delivered EPS of $1.06 versus $1.14 a year ago. Analysts cut next-quarter EPS estimates by 2.2% to $1.31, while Dolby retains a Zacks Rank #2 Buy and a VGM Score of F.
1. Dolby Q4 2025 Results
Dolby Laboratories reported $346.71 million in revenue for the quarter ended December 2025, reflecting a 2.9% year-over-year decline. The company recorded GAAP earnings per share of $1.06, down from $1.14 in the year-ago quarter.
2. Analyst Outlook and Estimate Revisions
For the current quarter, consensus EPS estimates have been lowered by 2.2% to $1.31, signaling tempered expectations for Dolby’s near-term performance. This revision reflects cautious sentiment as revenue growth remains under pressure.
3. Ratings and Score
Despite the downward estimate revisions, Dolby holds a Zacks Rank #2 (Buy), indicating a favorable analyst outlook. However, the stock’s VGM Score of F suggests challenges in value, growth and momentum metrics relative to peers.