Disney’s 2026 cinematic journey has been a tale of two extremes. While Pixar’s Toy Story 5 soared to new heights, other high-profile releases stumbled at the box office. This dichotomy has sparked discussions about Disney’s strategic direction and the future of its franchise films.
The company’s CEO Josh D’Amaro who took the helm earlier this year, addressed these challenges during Disney’s recent quarterly earnings call. He acknowledged the underperformance of The Mandalorian and Grogu and the live-action Moana but highlighted the broader benefits these films bring to Disney’s ecosystem.
The Mandalorian and Grogu: A Box Office Low, but a Franchise Boost
The Mandalorian and Grogu directed by Jon Favreau made history as the lowest-grossing live-action Star Wars film to date, amassing just $345 million worldwide. Despite this, D’Amaro emphasized the film’s positive impact on the Star Wars franchise. It drove retail sales, attracted visitors to the Millennium Falcon attraction at Disneyland and Walt Disney World and boosted engagement in gaming.
The film’s reception was mixed, but its role as a bridge between the popular TV series and the big screen provided a unique value. With no Star Wars film released in the past seven years, the pressure on The Mandalorian and Grogu was immense. Disney’s strategy of leveraging its intellectual property across various platforms aims to offset theatrical losses, but the long-term success of this approach remains to be seen.
Moana’s Live-Action Adaptation: A Costly Gamble
The live-action adaptation of Moana directed by Thomas Kail faced an even steeper challenge. With a production budget of $250 million the film has only managed to gross $263 million to date. This follows the success of Moana 2 which was one of Hollywood’s biggest hits in 2026 with a staggering $1 billion in earnings.
Disney’s CFO Hugh Johnston offered a nuanced perspective, stating that while theatrical performance is crucial, the true value of the IP lies in its cumulative benefits. He highlighted Disney’s diversified business model, which helps mitigate the volatility of the film industry. The live-action Moana is expected to find a second life on Disney+ building on the success of the original film, which is one of the most-streamed movies of all time.
However, the financial gap left by the live-action Moana is significant. Unlike The Mandalorian and Grogu which benefits from a vast array of merchandise and theme park attractions, the live-action Moana has a more limited upside. This raises questions about the sustainability of such high-budget live-action remakes.
Spider-Man: Brand New Day: A Ray of Hope
Amidst these challenges, Disney found a beacon of hope with the release of Spider-Man: Brand New Day. The film, starring Tom Holland generated an estimated $355 million domestically and $572 million internationally, bringing its global opening to nearly $927 million. This spectacular debut has bolstered confidence in Disney’s film business and demonstrated the enduring popularity of the Marvel franchise.
The success of Spider-Man: Brand New Day comes at a time when theaters are experiencing strong demand. Disney’s 2026 release slate, which includes major franchises from PixarMarvel and Lucasfilm aims to attract audiences and drive the company’s entertainment division’s recovery. Upcoming releases like Avengers: Doomsday and Star Wars: Starfighter are expected to further strengthen Disney’s position in the market.
As Disney navigates the complexities of the film industry, it remains focused on strengthening Disney+ under CEO Josh D’Amaro. By improving the platform and adding more content, Disney aims to make Disney+ a central hub for entertainment, sports, and Disney experiences. This strategic shift could decide the future of Disney’s stock story and its ability to maintain audience engagement in an ever-evolving market.
