Dolby Laboratories, Inc. DLB recently teamed up with General Motors GM, Cadillac's parent company, to make Dolby Atmos available as a feature across Cadillac's entire 2026 electric vehicle (EV) lineup. The initiative aims to bolster the in-car entertainment journey, offering Cadillac customers a studio-quality audio experience that captures the true essence of music as intended by the artists.

As part of the collaboration, the upcoming 2026 Cadillac EVs, including the ESCALADE IQL, ESCALADE IQ, LYRIQ-V, OPTIQ, VISTIQ and others, will incorporate Dolby Atmos technology. In addition, select 2025 models will get Dolby Atmos via over-the-air software updates.

Dolby Atmos is an advanced spatial audio technology offering a fully immersive experience that captures artistic expression at its peak. By placing listeners inside their favorite songs, it enhances every detail with premium clarity and depth, forging a stronger bond between artists and fans. With the growing adoption of EVs, automakers are shifting their focus to improving passenger experiences through advanced technology and luxury features. By incorporating Dolby Atmos, Cadillac is set to elevate in-car audio, capitalizing on the rapidly growing EV market.

The decision to bring Dolby Atmos to Cadillac's EV lineup comes at a time when consumers are spending more time in their vehicles. DLB highlighted a recent survey from the Federal Highway Administration, which states that drivers in the United States collectively drive more than 3 trillion miles each year. This demonstrates the growing need for high-quality in-car entertainment.

Dolby Laboratories Price and Consensus

Dolby Laboratories price-consensus-chart | Dolby Laboratories Quote

Furthermore, a study conducted by Dolby has revealed that approximately 90% of music streaming subscribers viewed enhanced audio quality as a “must-have” feature, with more than 50% strongly agreeing. 

Rapid Uptake of Dolby Atmos Fuels DLB’s Growth 

The introduction of Dolby Atmos in Cadillac vehicles highlights a broader industry trend where top artists are now embracing Dolby Atmos for music production. According to Billboard's 2024 Top 100 Artists, 93% of artists are now releasing music in Dolby Atmos, allowing listeners to experience their favorite songs like never before. The rising adoption of Dolby Atmos is driving the company's top-line momentum.

Management highlighted that nearly 80% of the domestic box office and almost 70% of the global box office titles were released in Dolby Atmos and Dolby Vision formats in 2024.  It announced partnerships with more than 20 original equipment manufacturers (OEMs), which now have over 60 models in the market with Dolby Atmos. Several partners are now expanding Dolby Atmos deeper into their product lineups, which bodes well for Dolby. 

In the fiscal first quarter, Amazon unveiled its first sound bars that support Dolby Atmos. Another encouraging development was that several PC OEMs, like Asus, Dell, Lenovo and Samsung, have announced new computers, laptops/peripherals that support Dolby Atmos and Dolby Vision. For fiscal 2025, the company expects Dolby Atmos and Dolby Vision, along with imaging patents, to grow around 15%.

DLB’s Zacks Rank & Stock Price Performance

DLB currently carries a Zacks Rank #2 (Buy). Shares of the company have lost 2.2% in the past year compared with the Zacks Audio Video Production industry's decline of 14.9%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are InterDigital, Inc. IDCC and Arista Networks, Inc. ANET. IDCC presently sports a Zacks Rank #1 (Strong Buy), while ANET carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.


 

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