Dolby Laboratories, Inc. DLB and LG Electronics have introduced the LG Sound Suite, a new modular home audio system designed to redefine immersive entertainment at home. Headlined by the H7 soundbar, the world’s first soundbar powered by Dolby Atmos FlexConnect, the launch brings DLB’s next-generation audio technology into an entirely new category of devices. The collaboration gives consumers greater freedom to personalize their home setups while marking a major milestone in the evolution of home entertainment.
Also, LG will expand support for Dolby Atmos FlexConnect across its latest premium TV lineup, including select 2025 models, through a future software update. In its most basic form, FlexConnect allows users to wirelessly connect speakers to their TV and place them wherever they best fit the room’s layout and décor. The system is built to grow over time, making it easy to add speakers or a soundbar as audio needs evolve.
The LG Sound Suite supports up to 27 speaker configurations, ranging from simple two-speaker setups to a full 13.1.7-channel home theater system. The system can include the H7 soundbar, up to four M7 or M5 surround speakers and a W7 subwoofer. When the H7 soundbar serves as the lead device, Dolby Atmos FlexConnect works with any TV. It can also be experienced through LG’s compatible 4K Dolby Vision premium TVs when paired with M7 or M5 speakers or the W subwoofer.
The launch comes as Dolby Atmos continues to see rapid global adoption across entertainment. The format is now featured in 98 of the top 100 box-office films of the past five years, supported by more than 100 streaming and pay-TV services worldwide, and embraced by 93% of Billboard’s 2025 Top 100 artists. From blockbuster movies and hit shows to live sports, music and next-generation gaming, Dolby Atmos has become a standard for premium content.
With the LG Sound Suite powered by Dolby Atmos FlexConnect, consumers can experience movies, TV shows, sports, music and games exactly as creators intend—regardless of room size or layout. LG will officially debut the LG Sound Suite at CES 2026, taking place from Jan. 6 to 9, showcasing the future of flexible, immersive home audio.
Management highlighted that the new solution eliminates the long-standing trade-off between room design and sound quality. With LG’s Sound Suite and FlexConnect-enabled TVs, users can enjoy premium audio that automatically adapts to their space, without complicated setup. The approach reflects Dolby’s broader mission to make its innovations more accessible and to elevate home entertainment experiences worldwide.
Dolby’s ecosystem of device OEMs and partnerships continued to strengthen across televisions, mobile devices, wearables and automotive brands. The company signed new agreements with major brands such as Maruti Suzuki, with more than 40% market share, along with Deepal in China and VinFast in Vietnam. Several manufacturers, including Li Auto, Mahindra, Cadillac, Zeekr and Mercedes, launched new models featuring Dolby technologies.
Additionally, the first in-car game with Dolby Atmos, Loner, debuted on Li Auto vehicles, highlighting rising interest from content creators in enhancing in-car entertainment. Dolby expects automotive to remain one of its fastest-growing segments and anticipates eventually breaking it out as a separate end market as adoption deepens across model lineups and price tiers.
For fiscal 2026, the company expects revenues to be in the $1.39-$1.44 billion band. Dolby reported non-GAAP EPS of $4.24 in fiscal 2025.
DLB currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 7.3% in the past three months compared with the Zacks Audio Video Production industry’s decline of 12.3%.
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Some better-ranked stocks from the broader technology space are Alto Ingredients, Inc. ALTO, Sony Group Corporation SONY and Reynolds Consumer Products Inc. REYN. ALTO sports a Zacks Rank #1 (Strong Buy), and SONY and REYN carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alto earnings beat the consensus estimate in two of the trailing four quarters while missing in two, with the average surprise being 81.7%. In the last reported quarter, ALTO delivered an earnings surprise of 416.7%. Its shares have jumped 162% in the past six months.
Sony’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 36.9%. In the last reported quarter, SONY delivered an earnings surprise of 6.1%. Its shares have surged 23.2% in the past year.
Reynolds’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while in line in two, with the average surprise being 2.6%. In the last reported quarter, REYN delivered an earnings surprise of 7.7%. Its shares have soared 15.2% in the past six months.
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