Disney has acknowledged that its Star Wars return, The Mandalorian and Grogu, did not meet box office expectations, with CEO Josh D'Amaro telling investors on an August 5 earnings call that the film underperformed. The admission came alongside word that Disney's live-action Moana, released in the same quarter, also fell short of projections despite what the company described as strong audience scores. The Hollywood Reporter

The numbers tell the story plainly. The Mandalorian and Grogu grossed $345 million globally against an estimated production budget of $165 million, before marketing costs — domestic, meaning the United States and Canada, accounted for roughly $155 million of that total. That finish puts it below Solo, the 2018 Star Wars spin-off previously regarded as the franchise's live-action low, which grossed $392 million worldwide. Adjusted for inflation, the gap is wider still, as Fox News reported in June. The Hollywood Reporter; Fox News

The opening weekend in May had offered reason for caution. The film launched to $167 million worldwide, including a $98 million four-day domestic holiday figure — $81 million across the standard three days — according to Deadline. Strong but not blockbuster, especially for a property Disney was counting on to relaunch its theatrical Star Wars presence after years without a feature film in the franchise. Deadline

D'Amaro framed the shortfall as part of a larger picture. Even when franchise films miss at the box office, he told investors, investments in core properties fuel other parts of the company — toy sales, theme park rides, and gaming all benefit from the characters and stories reaching audiences. CFO Hugh Johnston echoed that view, describing theatrical performance as "more of a portfolio game" and saying Disney's diversified businesses help absorb volatility from the film unit. The Hollywood Reporter

The broader company is not hurting. Disney's revenue growth accelerated from 11 percent in the first quarter of fiscal 2026 to 13 percent in the second, and demand at its domestic parks and resorts remains healthy, according to the company's May shareholder letter. Disney also projected total segment operating income of approximately $5.3 billion for Q3 FY2026. Yahoo Finance; Disney Q2 FY2026 Earnings

What makes this stand out is the candour. Studios rarely volunteer that a tentpole fell short on an earnings call. Disney's willingness to name both The Mandalorian and Grogu and Moana directly signals that the company is comfortable acknowledging misfires when the wider business is strong enough to absorb them — and when the next bet is already on the calendar.

That next bet is Star Wars: Starfighter, starring Ryan Gosling and directed by Shawn Levy, slated for release on May 28, 2027. It is a fresh creative team and a new storyline, separate from the Mandalorian thread. Whether it pulls the franchise back above the Solo line will be the number to watch. The Hollywood Reporter