Disney is not pretending Star Wars: The Mandalorian and Grogu or live-action Moana lit up the theatrical ledger. On the Q3 FY26 call, CEO Josh D'Amaro said both missed box office expectations, then immediately reframed them as flywheel fuel for retail, parks, gaming, and Disney+.
That is the whole pitch in one sentence: theatrical is one scoreboard, not the only one.
What D'Amaro actually said
Disney published the line in its Q3 FY26 CEO commentary:
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.
He then split the defense by title:
| Title | Non-theatrical value Disney called out |
|---|---|
| *The Mandalorian and Grogu* | Healthy growth in Star Wars retail; guests to the updated Millennium Falcon Smugglers Run mission at Disneyland and Walt Disney World; significant gaming engagement |
| Live-action *Moana* | Expected to be a strong Disney+ title, riding the original animated film's status as one of the most-streamed movies of all time (Nielsen, per Disney) |
Contrast that with the success story Disney put beside them: Toy Story 5 clearing $1 billion globally, with the five-film franchise at more than $4 billion theatrical and over 2 billion hours streamed on Disney+.
