Yes.
"Audio
Realtek® ALC887 codec
High Definition Audio
2/4/5.1/7.1-channel * To configure 7.1-channel audio, you have to use an HD front panel audio module and enable the multi-channel audio feature through the audio driver.
Support for S/PDIF Out"
http
/www.gigabyte.com/Motherboard/GA-Z97P-D3-rev-10#sp