Dolby Laboratories, Inc. DLB is expanding its presence across Meta Platforms, Inc.’s META ecosystem as Dolby Atmos and Dolby Vision become available across more devices and platforms. The companies announced the expansion at Meta Connect, bringing new Dolby experiences to Meta AI glasses and Instagram, while also extending support to Meta’s virtual reality devices. The move strengthens Dolby’s reach across entertainment, content creation and social sharing.
Meta AI glasses are the first global consumer device capable of capturing audio in Dolby Atmos. This enables users to record moments with immersive audio and share them on Instagram, helping create a more engaging experience for viewers. The announcement builds on Dolby Vision’s availability on Instagram, which was introduced last year. Dolby has also been expanding Dolby Vision across social media and user-generated content platforms, including Instagram, Facebook and Douyin. The company stated on its third-quarter earnings call that it is entering new device categories, including smart glasses and video cameras.
Meta’s newest VR device is also set to support Dolby Vision and Dolby Atmos when it launches next year. The technologies are expected to enhance immersive experiences across movies, shows, sports, concerts and other premium virtual reality content. Together, Dolby Atmos and Dolby Vision are designed to provide greater depth, authenticity and emotional engagement across different forms of digital content.
The expansion with Meta adds to Dolby’s broader efforts to grow beyond traditional device licensing. In the third quarter, Meta became a licensee of Dolby’s video distribution patent program covering Facebook, Instagram and WhatsApp. Dolby said the program had attracted 45 licensors and several major streaming companies within its first year.
Dolby continues to see growing adoption of Dolby Atmos and Dolby Vision across devices and use cases. The company expects Dolby Atmos, Dolby Vision and imaging patents revenue to increase roughly 15% year over year in fiscal 2026, supported by broader adoption across its key markets.
Taking a Look at DLB’s Competitors
Sony Group Corporation’s SONY shift toward entertainment, recurring digital services and creator-focused technology drove fiscal first-quarter results. PlayStation’s large active-user base, rising network services revenue and fuller release slate underpin higher gaming earnings. Music benefits from streaming and catalog monetization, while image sensors gain from a richer customer and product mix. Anime expansion through Crunchyroll and group partnerships broadens Sony’s IP reach. Sony raised its full-year sales forecast to ¥12,500 billion from ¥12,300 billion and operating income guidance to ¥1,720 billion from ¥1,600 billion. The net income forecast increased to ¥1,210 billion from ¥1,160 billion, while the operating cash flow outlook remained at ¥1,500 billion.
Sonos Inc. SONO is returning to growth as newer products, international expansion and a more reliable system broaden the value of its ecosystem. Recent results show better revenue momentum while disciplined spending and a sizable cash balance support continued investment and share repurchases. The installer channel and a deeper product pipeline offer additional routes to household growth and repeat purchases. For the fourth quarter of fiscal 2026, SONO expects revenues of $325 million to $355 million, representing 13% to 23% growth. For fiscal 2026, Sonos expects revenue growth of 6% to 8%, or 4% to 6% excluding the extra week.
DLB’s Price Performance, Valuation & Estimates
Shares of DLB have lost 16.9% in the past year compared with the Zacks Audio Video Production industry’s decline of 22.1%.
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In terms of the forward 12-month Price/Sales ratio, DLB is trading at 3.74, higher than the industry’s multiple of 1.66.
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For DLB, earnings estimates for the current year have been unchanged in the past 60 days.
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Dolby currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).