Should Dolby’s New LG Sound Suite And First U.S. Vision+Atmos Cinema Rollout Require Action From Dolby Laboratories (DLB) Investors?

• In December 2025, Dolby Laboratories and LG Electronics unveiled the LG Sound Suite, a modular home audio system built around the H7 soundbar powered by Dolby Atmos FlexConnect, while The Movie Experience SLO became the first U.S. exhibitor to adopt Dolby’s combined Dolby Vision+Atmos cinema solution.
• Together, these launches show how Dolby is extending its Atmos and Vision ecosystem across both home and theatrical experiences, reinforcing its role at the center of premium entertainment technology.
• We’ll now examine how Dolby’s expansion with LG’s Atmos FlexConnect-powered Sound Suite could influence the company’s existing investment narrative.

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Dolby Laboratories Investment Narrative Recap

To own Dolby, you need to believe that Atmos and Vision can offset pressure in more commoditized consumer electronics by becoming must-have standards across devices, cars, and cinemas. The LG Sound Suite and first U.S. Dolby Vision+Atmos auditorium support that ecosystem story, but they do not fundamentally change the key near term catalyst: broader premium-device adoption versus the biggest risk of device makers shifting toward cheaper or royalty free alternatives.

Among recent updates, Dolby’s fiscal 2025 results and fiscal 2026 guidance stand out, with management pointing to continued growth in Atmos, Vision, and newer initiatives like Dolby OptiView. That context helps frame the LG Atmos FlexConnect expansion with LG as another proof point in Dolby’s effort to push beyond slower growing foundational segments into higher value, more immersive experiences that underpin its licensing thesis.

However, even as Atmos and Vision spread, investors should be aware that growing use of alternative or royalty free codecs could...

Read the full narrative on Dolby Laboratories (it's free!)

Dolby Laboratories' narrative projects $1.5 billion revenue and $334.6 million earnings by 2028. This requires 4.0% yearly revenue growth and about a $70 million earnings increase from $264.3 million today.

Uncover how Dolby Laboratories' forecasts yield a $90.50 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community range widely from US$47.36 to US$232.74 per share, reflecting very different expectations. Against this backdrop, Dolby’s reliance on premium licensing amid rising alternatives may meaningfully shape how those views on long term performance evolve, so it is worth weighing several of them side by side.

Explore 5 other fair value estimates on Dolby Laboratories - why the stock might be worth over 3x more than the current price!

Build Your Own Dolby Laboratories Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Dolby Laboratories research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Dolby Laboratories research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dolby Laboratories' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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