Disney CEO admits 'Star Wars' and 'Moana' films failed to meet expectations

Disney says 'The Mandalorian and Grogu' and 'Moana' underperformed in theatres but strengthened its wider business

Speaking during Disney’s latest earnings call, D’Amaro said the two releases underperformed theatrically but continued to benefit the company through merchandise, theme park attractions, streaming and gaming.

According to D’Amaro, The Mandalorian and Grogu boosted retail sales for the Star Wars franchise, increased attendance at the Millennium Falcon attractions at Disneyland and Walt Disney World, and drove engagement across Disney’s gaming business. He added that the live-action Moana is expected to perform strongly on Disney+, building on the enduring popularity of the original animated film.

Disney also reiterated in its earnings report that investments in major franchises create value beyond theatrical releases.

Released over the Memorial Day weekend, The Mandalorian and Grogu earned $345 million worldwide after opening with $81 million domestically, well below previous Star Wars films. Meanwhile, the live-action Moana, starring Dwayne Johnson as Maui, has grossed $262 million globally against a reported production budget of about $250 million.

Disney Chief Financial Officer Hugh Johnston said theatrical revenue remains important but described film performance as part of a broader portfolio strategy, emphasising the long-term value of Disney’s intellectual property across multiple business segments.

Despite discussing recent box office disappointments, D’Amaro praised the record-breaking performance of Spider-Man: Brand New Day, saying its success highlights the continued strength of Marvel and creates momentum ahead of the release of Avengers: Doomsday later this year.