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Dolby Laboratories’ Meta & Alibaba Wins: Can Streaming Become The Next Big Engine?

Dolby Laboratories reported third-quarter fiscal 2026 revenue of $305 million, aligning with prior guidance. Licensing revenue contributed $282 million, with products and services accounting for $23 million. The company achieved a non-GAAP earnings per share of $0.69, near the midpoint of its forecast, supported by lower-than-expected operating expenses offsetting revenue softness and increased taxes. Operating cash flow was approximately $167 million, and the firm repurchased 1.2 million shares for $65 million, with the Board authorizing an incremental $350 million for share repurchases, totaling $427 million. A dividend increase of 9% to $0.36 was also declared. The quarter included a $4 million restructuring charge related to organizational realignments. Dolby indicated a strategic focus on expanding its total addressable market beyond traditional device licensing into content partnerships, aiming for 10% of revenue from these streams by fiscal 2028.