Disney's box office report looked like a cautionary tale at first glance. Many assumed Disney absorbed a major blow after Star Wars: The Mandalorian and Grogu and the live-action Moana remake fell short of theatrical expectations. Then came the twist. Disney chief executive Bob Iger revealed that those very releases fueled merchandise sales, drew families into Disney theme parks, and strengthened Disney+ in ways ticket sales alone could not.

Sometimes, missing one target only means hitting three others, as The Mandalorian and Grogu, and Moana found bigger victories beyond cinemas. 

Disney's office disappointments have come with an unexpected silver lining. During the company's Fiscal Third Quarter 2026 Earnings Call, Disney chief executive Josh D'Amaro revealed that The Mandalorian and Grogu and the live-action Moana generated value far beyond ticket sales. The theatrical numbers missed internal expectations, but the business story did not end there.

D'Amaro explained that Star Wars: The Mandalorian and Grogu boosted Star Wars merchandise sales, encouraged visitors to experience the refreshed Millennium Falcon attraction at Disneyland and Walt Disney World, and sparked strong engagement across gaming. Meanwhile, the live-action Moana is expected to become a major Disney+ performer, following the remarkable streaming legacy of the animated original.

“Even when our franchise films don’t meet our box office expectations, as with the ‘Mandalorian and Grogu’ and the live-action ‘Moana,’ our investments in these core properties fuel other parts of our company,” D’Amaro said in the official statement from Disney.

Disney's earnings release echoed that larger strategy, noting that these franchise investments created value well beyond their theatrical runs as D'Amaro shared. Sometimes a film does not need to dominate the box office to justify its existence. If it fills shopping carts, theme parks, gaming platforms, and streaming libraries, the ledger suddenly tells a very different story.

'The Mandalorian & Grogu' Faces Historic Box Office Low for 'Star Wars' Franchise

Even if the films are winning unexpected battles elsewhere, one cannot help but wonder whether that is enough to offset the box office shortfall, especially when even Moana recently struggled to stay afloat.

Together, Star Wars: The Mandalorian and Grogu and the live-action Moana are estimated to have left Disney staring at a combined net theatrical deficit of roughly $225 million to $350 million. Neither film reached its projected break-even point, despite worldwide grosses of $345.2 million and $263 million, respectively.

The numbers tell two different stories with the same conclusion. Star Wars: The Mandalorian and Grogu reportedly lost more than $125 million after its $165 million production budget and substantial marketing costs, while the $250 million live-action Moana remains on course for a $100 million to $220 million-plus deficit. Even so, Disney argues those theatrical losses unlocked value well beyond the box office.

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Do you think Disney would be able to cut its losses with Star Wars: The Mandalorian and Grogu and Moana's unprecedented success? Let us know in the comments!