Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Dolby Laboratories (NYSE: DLB) and its peers.

The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.

The 7 design software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.5% while next quarter’s revenue guidance was 0.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.2% since the latest earnings results.

Weakest Q3: Dolby Laboratories (NYSE: DLB)

Known for its iconic "D" logo that appears before countless movies and TV shows, Dolby Laboratories (NYSE: DLB) designs and licenses audio and video technologies that enhance entertainment experiences in movies, TV shows, music, and other media.

Dolby Laboratories reported revenues of $307 million, flat year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a softer quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations.

"We finished FY25 strong, growing Dolby Atmos, Dolby Vision and imaging patents, and expanding our addressable market with momentum in Dolby OptiView and the introduction of a new imaging patent pool for content streamers," said Kevin Yeaman, President and CEO, Dolby Laboratories.

Dolby Laboratories pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 17.3% since reporting and currently trades at $62.16.

Read our full report on Dolby Laboratories here, it’s free.

Best Q3: Unity (NYSE: U)

Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE: U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms.

Unity reported revenues of $470.6 million, up 5.4% year on year, outperforming analysts’ expectations by 4.6%. The business had a very strong quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 17.3% since reporting. It currently trades at $42.08.

Is now the time to buy Unity? Access our full analysis of the earnings results here, it’s free.

Adobe (NASDAQ: ADBE)

Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.

Adobe reported revenues of $6.19 billion, up 10.5% year on year, exceeding analysts’ expectations by 1.4%. It may have had the worst quarter among its peers, but its results were still good as it also locked in EPS guidance for next quarter beating analysts’ expectations and a solid beat of analysts’ billings estimates.

As expected, the stock is down 14% since the results and currently trades at $295.25.

Read our full analysis of Adobe’s results here.

Cadence Design Systems (NASDAQ: CDNS)

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ: CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Cadence Design Systems reported revenues of $1.34 billion, up 10.1% year on year. This print surpassed analysts’ expectations by 0.9%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and full-year EPS guidance beating analysts’ expectations.

The stock is down 10.6% since reporting and currently trades at $314.25.

Read our full, actionable report on Cadence Design Systems here, it’s free.

Autodesk (NASDAQ: ADSK)

Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.

Autodesk reported revenues of $1.85 billion, up 18% year on year. This result topped analysts’ expectations by 2.4%. Overall, it was a very strong quarter as it also put up full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

The stock is down 12.5% since reporting and currently trades at $257.57.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.