Technology
Aerospace Cyber Security Market to Reach $58.8 Billion, Globally, by 2032 at 8.4% CAGR: Allied Market Research
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2 years agoon
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The growth of the global aerospace cyber security market is driven by factors such as increase in cyber threats, rise in digitization and connectivity, and integration of advanced technologies in the aerospace sector.
WILMINGTON, Del., Feb. 14, 2024 /PRNewswire/ — Allied Market Research published a report, titled, “Aerospace Cyber Security Market by Type (Network Security, Wireless Security, Cloud Security, and Content Security), Deployment (On-Premise and Cloud), Application (Aircraft, Drones, and Satellites), and Component (Services and Solutions): Global Opportunity Analysis and Industry Forecast, 2023–2032”. According to the report, the global aerospace cyber security industry size generated $26.3 billion in 2022 and is anticipated to generate $58.8 billion by 2032, witnessing a CAGR of 8.4% from 2023 to 2032.
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160 – Tables46 – Charts300 – Pages
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Prime Determinants of Growth
The growth of the global aerospace cyber security market is driven by factors such as increase in cyber threats, rise in trend of digitization & connectivity, and integration of advanced technologies in the aerospace sector. However, high installation & operational costs and regulatory challenges hamper the growth of the market. On the contrary, technological advancements and innovation, coupled with strengthening of cyber regulations in the aerospace industry, are expected to offer remunerative opportunities for the expansion of the aerospace cyber security market during the forecast period.
Report Coverage and Details:
Report Coverage
Details
Forecast Period
2023–2032
Base Year
2022
Market Size In 2022
$26.3 Billion
Market Size In 2032
$58.8 Billion
CAGR
8.4 %
No. Of Pages in Report
280
Segments Covered
Type, Deployment, Application, Component, And Region
Drivers
Increase In Cyber Threats
Rise In the Digitization And Connectivity
Integration Of Advanced Technologies in The Aerospace Sector
Opportunities
High Installation and Operational Costs
Regulatory Challenges
Restraints
Technological Advancements and Innovation
Cyber Regulations in The Aerospace Industry
Impact of Russia–Ukraine War Scenario
On February 24, 2022, Russia invaded Ukraine, leading to the Russia–Ukrainian war that began in 2014. Due to geopolitical conflicts, there is an emergence of global economic uncertainties. In times of economic unpredictability, aviation companies or airports budgets can be affected, potentially influencing the allocation of funds for aerospace cybersecurity. This, in turn, could impact the adoption and integration of aerospace cybersecurity products or ability to invest in cybersecurity services. Furthermore, in times of conflict, governments might have to redirect their resources to deal with urgent security and humanitarian needs. This could mean changing their budget priorities, which might result in less money allocation for the investment in cybersecurity.
The network security segment to maintain its leadership status throughout the forecast period
Depending on type, the network security segment held the highest market share in 2022, accounting for more than one-third of the global aerospace cyber security market revenue, and is estimated to maintain its leadership status throughout the forecast period. This is attributed to the fact that modern aerospace systems are becoming increasingly connected, with the integration of Internet of Things (IoT) devices and other interconnected components. However, the cloud security segment is projected to register the highest CAGR of 8.9% from 2023 to 2032, owing to increase in penetration of leveraging cloud platforms for data storage, processing, and analysis.
Recent Developments in the Aerospace Cyber Security Sector
In January 2023, The Aerospace Corporation introduced the Space Attack Research and Tactic Analysis (SPARTA) framework, pinpointing distinct hacker risks to space systems.July 2023 saw Honeywell International’s confirmation of acquiring SCADAfence, a leading provider of cybersecurity solutions for operational technology (OT) and Internet of Things (IoT) in monitoring extensive networks.March 2022 marked Northrop Grumman Corporation’s announcement of establishing the 100th U.S. Air Force training site on the company’s distributed mission operations network (DMON), fostering secure global connectivity for combat air force (CAF) crews.In April 2022, Thales inaugurated its sixth cybersecurity center in Morocco, reinforcing its commitment to cybersecurity in the African continent.November 2021 witnessed Honeywell International, Inc. launching Honeywell NAVITAS, a software amalgamating AI, big data, machine learning, cybersecurity, and human-centered design principles.May 2021 saw the Air Force Life Cycle Management Center (AFLCMC) collaborating with Lockheed Martin to establish the rogue blue software factory, producing mission planning and command and control applications for the U.S. Strategic Command.In February 2021, Lockheed Martin Corporation secured a basic ordering agreement (BOA) from the U.S. Air Force for Platform One software DevSecOps services, encompassing DevSecOps engineering, software development, cybersecurity, operations, and IT support.
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The on-premise segment to maintain its leadership status throughout the forecast period
On the basis of deployment, the on-premise segment held the highest market share in 2022, accounting for more than half of the global aerospace cyber security market revenue, and is anticipated to maintain its leadership status throughout the forecast period as there are stringent regulations and compliance standards, often requiring organizations to adhere to specific data handling and security practices. Moreover, the cloud segment is projected to attain the highest CAGR of 7.8% from 2023 to 2032, owing to high investment in cybersecurity measures, offering advanced security features and protocols.
The aircraft segment to maintain its lead position during the forecast period
By application, the aircraft segment acquired the largest share in 2022, accounting for more than half of the global aerospace cyber security market revenue, and is estimated to maintain its leadership status throughout the forecast period as there is growing need for robust cybersecurity measures to protect against potential cyber threats targeting these connected aircraft systems. Moreover, the drones segment is projected to register the highest CAGR of 8.5% from 2023 to 2032, owing to widespread adoption that has led to an expanded attack surface, making drones attractive targets for cyber threats.
The services segment to maintain its lead position during the forecast period
Depending on component, the services segment garnered the largest share in 2022, accounting for more than half of the global aerospace cyber security market revenue, and is estimated to maintain its leadership status throughout the forecast period as there is an increase in the provision of services to specialized knowledge and skills, enabling aerospace companies to navigate the complexities of the threat landscape. Moreover, the solutions segment is projected to record the highest CAGR of 7.4% from 2023 to 2032, owing to growing demand for advanced cybersecurity solutions that can effectively detect, prevent, and respond to a wide range of cyber threats targeting aerospace systems.
North America to maintain its dominance by 2032
Region wise, Asia-Pacific held the highest market share in terms of revenue in 2022, accounting less than one-third of the market revenue, and is likely to dominate the market during the forecast period, as there is highly advanced and technologically sophisticated aerospace industry, with a focus on innovation, research, and development. However, Asia-Pacific is expected to witness the highest CAGR of 7.8% from 2023 to 2032, owing to governments in Asia-Pacific that are recognizing the importance of cybersecurity in the aerospace sector and are implementing initiatives and regulations to enhance cybersecurity resilience.
Report Key Highlights:
The aerospace cybersecurity market analysis spans over 15 countries, offering a comprehensive breakdown of values ($million) from 2022 to 2032.Our research integrates top-tier data, expert opinions, and in-depth analysis, accompanied by substantial independent perspectives. This method is designed to furnish a well-rounded view of the global market, aiding stakeholders in making informed decisions for ambitious growth objectives.A meticulous review process encompassed over 3,700 product catalogs, annual reports, industry descriptions, and similar resources from major industry players, enhancing our understanding of the market dynamics.
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Leading Market Players
Astronautics Corporation of America BAE Systems DXC Technology Company Eurocontrol Honeywell International Inc. Lockheed Martin Corporation Northrop Grumman Corporation Boeing Thales Group The Aerospace Corporation
The report provides a detailed analysis of these key players of the global aerospace cyber security market. These players have adopted various strategies such as contracts, agreements, partnerships, and expansion to increase their market penetration and strengthen their position in the industry. The report is helpful in determining the business performance, operating segments, developments, and product portfolios of every market player.
About Us
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
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In HelloNation, Senior Living Experts Rusty and Kelly Ackerman Explain What Families Should Ask a Senior Living Community
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What Families Should Ask a Senior Living Community features insights from Rusty and Kelly Ackerman, Senior Living Experts of Traverse City, Michigan, in HelloNation.
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Five-year agreement establishes Avondale Global Gateway as a key Gulf Coast terminal for Suzano’s growing North American operations
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Technology
Dolby Laboratories Reports Second Quarter 2026 Financial Results
Published
58 minutes agoon
April 30, 2026By
SAN FRANCISCO, April 30, 2026 /PRNewswire/ — Dolby Laboratories, Inc. (NYSE: DLB) today announced the company’s financial results for the second quarter of fiscal 2026.
“We continue to strengthen our position and create growth opportunities across existing and new business areas,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “This quarter, we continued to expand our reach especially in sports with events like the Super Bowl, Winter Olympics and T20 Cricket World Cup available in Dolby and automotive with automakers including BMW and Lexus integrating Dolby into their in-car experiences.”
Second Quarter Fiscal 2026 Financial Highlights
Total revenue was $396 million, compared to $370 million for the second quarter of fiscal 2025.GAAP net income was $95 million or $0.99 per diluted share, compared to GAAP net income of $92 million or $0.94 per diluted share for the second quarter of fiscal 2025. On a non-GAAP basis, second quarter net income was $131 million or $1.37 per diluted share, compared to $131 million or $1.34 per diluted share for the second quarter of fiscal 2025.Dolby repurchased approximately one million shares of its common stock for approximately $65 million, and ended the quarter with approximately $142 million of stock repurchase authorization available going forward.
A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
Various sporting events were shown in Dolby Atmos and/or Dolby Vision including the Super Bowl, the 2026 Olympic Winter Games, and the ICC Men’s T20 Cricket World Cup. Apple TV is streaming Formula One in Dolby Vision.At the 2026 Beijing International Automotive Exhibition (Auto China 2026), BMW and Dolby announced the launch of Dolby Atmos in the new BMW 7 Series and the new BMW iX3 Long Wheelbase.Douyin, the Chinese version of TikTok, is fully supporting content in Dolby Vision.Hisense, TCL and Philips have announced plans to release a wide range of Dolby Vision 2 enabled TVs globally by the end of the year, with Peacock and Canal+ committed to delivering content.Sharp and SK Planet joined the Video Distribution Program, bringing the licensor total to 40.
Dividend
Today, Dolby announced a cash dividend of $0.36 per share of Class A and Class B common stock, payable on May 20, 2026, to stockholders of record as of the close of business on May 12, 2026.
Financial Outlook
Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing herein due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including developments concerning trade restrictions and changes in trade or diplomatic relationships, supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that Dolby faces, and the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q for the second quarter of fiscal 2026, to be filed on or around the date hereof.
Dolby is providing the following estimates for its third quarter of fiscal 2026:
Total revenue is estimated to range from $295 million to $325 million.Licensing revenue is estimated to range from $270 million to $300 million. Gross margins are anticipated to be approximately 86% on a GAAP basis and approximately 88% on a non-GAAP basis.Operating expenses are anticipated to range from $235 million to $245 million on a GAAP basis and from $200 million to $210 million on a non-GAAP basis.Effective tax rate is anticipated to be around 23% on a GAAP basis and around 21% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $0.19 to $0.34 on a GAAP basis and from $0.56 to $0.71 on a non-GAAP basis.
Dolby is providing the following estimates for the full year of fiscal 2026:
Total revenue is expected to range from $1.40 billion to $1.45 billion.Licensing revenue is estimated to range from $1.295 billion to $1.345 billion. Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $930 million to $950 million on a GAAP basis and from $780 million to $800 million on a non-GAAP basis.Dolby expects operating margins to be approximately 21% on a GAAP basis and to be approximately 34% on a non-GAAP basis.Effective tax rate is anticipated to be around 23% on a GAAP basis and around 20% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $2.66 to $2.81 on a GAAP basis and from $4.30 to $4.45 on a non-GAAP basis.
Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss second quarter fiscal 2026 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, April 30, 2026.
The conference call can be accessed by registering online at Dolby Laboratories Q2 Fiscal Year 2026 Financial Results, at which time registrants will receive dial-in information as well as a conference ID.
A live audio webcast of the conference call will be available at http://investor.dolby.com where it will be archived for one year.
Non-GAAP Financial Information
To supplement Dolby’s financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby’s operating results in a manner that focuses on what Dolby’s management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby’s management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.
Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.
Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.
Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby’s management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby’s business, including as a means to evaluate period-to-period comparisons. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby’s GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.
Forward-Looking Statements
Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the third quarter of fiscal 2026 and full year fiscal 2026, Dolby’s ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are “forward-looking statements” that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally; Dolby’s ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s SEC filings and reports, including the risks identified under the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Dolby
Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby OptiView, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
March 27,
2026
March 28,
2025
March 27,
2026
March 28,
2025
Revenue:
Licensing
$ 372,245
$ 346,006
$ 692,016
$ 676,485
Products and services
23,385
23,555
50,320
50,075
Total revenue
395,630
369,561
742,336
726,560
Cost of revenue:
Cost of licensing
24,043
19,685
44,805
40,795
Cost of products and services
20,688
16,152
43,134
35,816
Total cost of revenue
44,731
35,837
87,939
76,611
Gross profit
350,899
333,724
654,397
649,949
Operating expenses:
Research and development
63,651
61,707
132,728
128,345
Sales and marketing
96,163
89,629
187,715
184,028
General and administrative
75,955
70,415
146,198
140,507
Restructuring charges
2,184
4,210
12,650
9,426
Total operating expenses
237,953
225,961
479,291
462,306
Operating income
112,946
107,763
175,106
187,643
Other income/(expense):
Interest income/(expense), net
5,024
3,559
9,142
6,205
Other income, net
1,729
8,928
7,053
12,453
Total other income
6,753
12,487
16,195
18,658
Income before income taxes
119,699
120,250
191,301
206,301
Provision for income taxes
(24,245)
(28,024)
(42,166)
(46,005)
Net income including noncontrolling interest
95,454
92,226
149,135
160,296
Less: net income attributable to noncontrolling interest
(539)
(433)
(893)
(681)
Net income attributable to Dolby Laboratories, Inc.
$ 94,915
$ 91,793
$ 148,242
$ 159,615
Net income per share:
Basic
$ 1.00
$ 0.95
$ 1.55
$ 1.66
Diluted
$ 0.99
$ 0.94
$ 1.54
$ 1.64
Weighted-average shares outstanding:
Basic
95,218
96,329
95,342
95,972
Diluted
95,515
97,471
96,273
97,581
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
March 27,
2026
September 26,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 594,282
$ 701,893
Restricted cash
79,523
91,468
Short-term investments
460
703
Accounts receivable, net
391,293
331,096
Contract assets, net
238,924
180,804
Inventories, net
31,929
30,424
Prepaid expenses and other current assets
78,298
51,873
Total current assets
1,414,709
1,388,261
Long-term investments
81,220
80,205
Property, plant, and equipment, net
461,841
470,608
Operating lease right-of-use assets
44,759
33,204
Goodwill and intangible assets, net
919,378
926,957
Deferred taxes
209,321
214,361
Other non-current assets
118,266
114,164
Total assets
$ 3,249,494
$ 3,227,760
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 20,688
$ 17,840
Accrued liabilities
405,200
369,256
Income taxes payable
15
8,928
Contract liabilities
38,837
31,382
Operating lease liabilities
9,866
10,384
Total current liabilities
474,606
437,790
Non-current contract liabilities
24,084
29,687
Non-current operating lease liabilities
39,826
28,494
Other non-current liabilities
83,846
99,843
Total liabilities
622,362
595,814
Stockholders’ equity:
Class A common stock
53
54
Class B common stock
40
40
Retained earnings
2,630,175
2,634,980
Accumulated other comprehensive loss
(12,276)
(12,517)
Total stockholders’ equity – Dolby Laboratories, Inc.
2,617,992
2,622,557
Noncontrolling interest
9,140
9,389
Total stockholders’ equity
2,627,132
2,631,946
Total liabilities and stockholders’ equity
$ 3,249,494
$ 3,227,760
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Fiscal Year-To-Date Ended
March 27,
2026
March 28,
2025
Operating activities:
Net income including noncontrolling interest
$ 149,135
$ 160,296
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
48,242
43,899
Stock-based compensation
67,919
66,734
Amortization of operating lease right-of-use assets
5,417
5,725
Provision for credit losses
3,691
1,967
Deferred income taxes
5,212
(3,741)
Share of net income of equity method investees, net of cash distributions
(1,933)
(1,325)
Other non-cash items affecting net income
(1,741)
(443)
Changes in operating assets and liabilities:
Accounts receivable, net
(104,083)
(420)
Contract assets, net
(60,474)
(32,864)
Inventories
3,853
(1,155)
Operating lease right-of-use assets
(17,177)
(1,608)
Prepaid expenses and other assets
(33,842)
26,577
Accounts payable and accrued liabilities
82,873
27,267
Income taxes, net
(6,067)
5,906
Contract liabilities
7,478
3,282
Operating lease liabilities
11,029
(5,682)
Other non-current liabilities
(12,227)
(12,739)
Net cash provided by operating activities
147,305
281,676
Investing activities:
Proceeds from sales of marketable securities
—
15,911
Proceeds from sale of assets held for sale
—
16,881
Proceeds from sale of intangible assets
6,623
—
Purchases of property, plant, and equipment
(13,690)
(13,676)
Business combinations, net of cash and restricted cash acquired, and other related payments
—
(1,362)
Purchases of intangible assets
(37,775)
—
Net cash provided by/(used in) investing activities
(44,842)
17,754
Financing activities:
Proceeds from issuance of common stock
15,293
26,124
Repurchase of common stock
(135,004)
(49,999)
Payment of excise tax on repurchase of common stock
—
(261)
Payment of cash dividend
(68,674)
(63,377)
Distributions to noncontrolling interest
(1,106)
(981)
Shares repurchased for tax withholdings on vesting of restricted stock
(32,222)
(33,950)
Net cash used in financing activities
(221,713)
(122,444)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
(306)
(4,396)
Net increase/(decrease) in cash, cash equivalents, and restricted cash
(119,556)
172,590
Cash, cash equivalents, and restricted cash at beginning of period
793,361
577,752
Cash, cash equivalents, and restricted cash at end of period
$ 673,805
$ 750,342
Licensing Revenue by Market
(unaudited)
The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
Market
March 27, 2026
March 28, 2025
March 27, 2026
March 28, 2025
Broadcast
$ 119,199
32 %
$ 94,249
27 %
$ 219,462
32 %
$ 210,011
31 %
Mobile
94,240
25 %
100,123
29 %
169,189
24 %
161,647
24 %
CE
40,949
11 %
38,140
11 %
86,551
13 %
87,597
13 %
PC
59,463
16 %
58,402
17 %
88,180
13 %
89,658
13 %
Other
58,394
16 %
55,092
16 %
128,634
18 %
127,572
19 %
Total licensing revenue
$ 372,245
100 %
$ 346,006
100 %
$ 692,016
100 %
$ 676,485
100 %
GAAP to Non-GAAP Reconciliations
(unaudited)
The following tables present Dolby’s GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the
second quarters of fiscal 2026 and fiscal 2025:
Net income:
Fiscal Quarter Ended
(in thousands)
March 27,
2026
March 28,
2025
GAAP net income attributable to Dolby Laboratories, Inc.
$ 94,915
$ 91,793
Stock-based compensation (1)
30,708
30,664
Amortization of acquisition-related intangibles (2)
9,713
10,078
Restructuring charges
2,184
4,210
Income tax adjustments
(6,190)
(6,017)
Non-GAAP net income attributable to Dolby Laboratories, Inc.
$ 131,330
$ 130,728
(1) Stock-based compensation included in above line items:
Cost of products and services
$ 424
$ 414
Research and development
9,807
9,043
Sales and marketing
10,216
10,640
General and administrative
10,261
10,567
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing
$ 6,589
$ 6,720
Cost of products and services
772
728
Sales and marketing
356
317
General and administrative
1,555
1,872
Other income, net
441
441
Diluted earnings per share:
Fiscal Quarter Ended
March 27,
2026
March 28,
2025
GAAP diluted earnings per share
$ 0.99
$ 0.94
Stock-based compensation
0.32
0.32
Amortization of acquisition-related intangibles
0.10
0.10
Restructuring charges
0.02
0.04
Income tax adjustments
(0.06)
(0.06)
Non-GAAP diluted earnings per share
$ 1.37
$ 1.34
Weighted-average shares outstanding – diluted (in thousands)
95,515
97,471
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the third quarter of
fiscal 2026 and full year fiscal 2026 included in this release:
Gross margin:
Q3 2026
Fiscal 2026
GAAP gross margin
86.0 %
88.0 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquisition-related intangibles
1.9 %
1.9 %
Non-GAAP gross margin
88.0 %
90.0 %
Operating expenses (in millions):
Q3 2026
Fiscal 2026
GAAP operating expenses (low – high end of range)
$235 – $245
$930 – $950
Stock-based compensation
(32)
(128)
Amortization of acquisition-related intangibles
(3)
(9)
Restructuring charges
—
(13)
Non-GAAP operating expenses (low – high end of range)
$200 – $210
$780 – $800
Operating margin:
Fiscal 2026
GAAP operating margin
21% +/-
Stock-based compensation
9 %
Amortization of acquisition-related intangibles
3 %
Restructuring charges
1 %
Non-GAAP operating margin
34% +/-
Effective tax rate:
Q3 2026
Fiscal 2026
GAAP effective tax rate
23.0 %
23.0 %
Stock-based compensation (low – high end of range)
(2%) – 1%
(2%) – 0%
Amortization of acquisition-related intangibles (low – high end of range)
(1%) – 0%
(1%) – 0%
Non-GAAP effective tax rate
21.0 %
20.0 %
Diluted earnings per share:
Q3 2026
Fiscal 2026
Low
High
Low
High
GAAP diluted earnings per share (low – high end of range)
$ 0.19
$ 0.34
$ 2.66
$ 2.81
Stock-based compensation
0.34
0.34
1.34
1.34
Amortization of acquisition-related intangibles
0.11
0.11
0.43
0.43
Restructuring charges
—
—
0.13
0.13
Income tax adjustments
(0.08)
(0.08)
(0.26)
(0.26)
Non-GAAP diluted earnings per share (low – high end of range)
$ 0.56
$ 0.71
$ 4.30
$ 4.45
Weighted-average shares outstanding – diluted (in thousands)
95,000
95,000
95,700
95,700
Investor Contact:
Peter Goldmacher
415-254-7415
peter.goldmacher@dolby.com
Media Contact:
media@dolby.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/dolby-laboratories-reports-second-quarter-2026-financial-results-302759263.html
SOURCE Dolby Laboratories, Inc.
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