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Summer box office could lead to first $10 billion year since pandemic

Hollywood is having its best summer since before the pandemic, and that hot streak is putting the annual box office on pace to cross $10 billion for the first time in seven years.
The season, which runs from the first weekend in May through Labor Day, has tallied $1.8 billion so far through Sunday. That’s down less than 2% from 2019 levels, or just about a $30 million lag. Industry analysts keep a close eye on this period of the year because it typically accounts for about 40% of the total annual domestic box office.
“The summer box office is incredibly important,” said Paul Dergarabedian, head of marketplace trends at movie data company Rentrak. “It’s vitally important in terms of what the overall health of the industry looks like and what that portends for the entire year.”
What sets this summer apart is that it didn’t kick off with a blockbuster action film or superhero team-up. Instead, the first major hit of the season came with the release of Disney’s “The Devil Wears Prada 2,” followed by Universal’s “Obsession” and A24’s “Backrooms,” two low-budget horror films from YouTube creators-turned-filmmakers.
It was further fueled by residual ticket sales of Lionsgate’s “Michael,” the Michael Jackson biopic, which debuted in late April.
Together, those four films have contributed nearly $850 million to the domestic summer box office since the start of May, according to data from Rentrak. Notably, that’s about how much Disney and Marvel’s “Avengers: Endgame” had tallied for the 2019 box office during the same period.
Still from Pixar’s “Toy Story 5.”
Disney
Last week’s release of Disney and Pixar’s “Toy Story 5” delivered another boost, posting a franchise-best opening of $160 million.
Combined, the handful of upside surprises is making for a stronger-than-expected domestic box office and a promising foundation for the second half of the year as the industry chases pre-pandemic levels.
As of Sunday, the 2026 box office has tallied $4.4 billion domestically, about 15% behind the $5.2 billion the 2019 box office had collected during the same time period.
Currently playing in theaters
Contributing to the surprisingly strong ticket sales is movies like “Michael,” “Obsession” and even Amazon MGM’s “Project Hail Mary,” which was released in March, that are holding strong at the box office week after week.
Typically, after opening weekend, a title will see sales drop anywhere from 50% to 70%. But these films were seeing drops of between 20% to 40% each week.
“Obsession” has pulled off an even rarer box office feat as ticket sales actually increased in its second and third weekend in theaters, up 39% and 14%, respectively, according to data from The Numbers.
That success is a sign that films are getting solid word of mouth from audiences and that it’s driving new moviegoers to cinemas.
“It’s just been one after another after another,” said Alex DelVecchio, general manager of Rutgers Cinema in Piscataway, New Jersey. “I always said this whole year was about getting to June 19. Because once you get to June 19 you hit this six weeks in a row. It’s Toy Story, ‘Supergirl,’ Minions, ‘Moana,’ [‘The Odyssey’] and Spider-Man.”
The combined efforts of those six films could boost the summer box office to $4.2 billion, Dergarabedian said. The summer box office has only surpassed $4 billion once since 2019, and that was thanks to the dual efforts of Warner Bros. “Barbie” and Universal’s “Oppenheimer” in 2023, according to Rentrak data.
That threshold would mark a return to normal cadence for the summer box office, which collected more than $4 billion practically every year between 2013 and 2019 before Covid shut down cinemas.
Movie posters for “Barbie” and “Oppenheimer” are pictured outside the Cinemark Somerdale 16 and XD in Somerdale, New Jersey, in 2023.
Hannah Beier | The Washington Post | Getty Images
Universal’s “The Odyssey,” directed by Christopher Nolan, is currently tracking for a $100 million-plus opening weekend and is expected to benefit significantly from premium large format screenings.
Sony’s “Spider-Man: Brand New Day,” which was made in collaboration with Disney’s Marvel Studios, could perform even better, with some analysts predicting between $200 million and $250 million for its opening weekend.
“‘Spider-Man: Brand New Day’ could be the biggest opening weekend of the year,” Dergarabedian said. “And that opens on July 31st. What’s that going to mean for August? Well, a lot, because that’s going to add and contribute a lot of box office to the month. Then that sets up a fall and a holiday period [where] I think we’re not going to see really that much of a slowdown.”
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AI Boom Risks Driving Up Inflation Outlook
Heightened competition for memory chips amid increasing investment in artificial intelligence is already showing up in consumer prices, James Bull at RSM UK said in a note.
Both Apple and Microsoft have now issued price hikes, confirming an industry-wide response to supply-chain shortages, Bull said. “The four largest U.S. technology companies are forecast to spend $725 billion on data centers and AI equipment in 2026 alone. That level of demand for memory chips has created a shortage the supply chain cannot keep pace with.”
It is now clear that the costs of building the AI economy is being passed on to consumers and potentially even the inflation outlook, with industry leaders suggesting shortages could last beyond 2028, Bull added.
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Stock Futures Slump as Tech Selloff Rages On After Mag 7 Dumped
Tech stocks were on track to extend their recent slump on Friday as investors continued to fret about soaring memory-chip costs and wondered if the AI trading frenzy may be about to fizzle out.
Nasdaq 100 futures dropped 1.1%. S&P 500 futures were 0.5% lower. Dow Jones Industrial Average futures fell 63 points, or 0.1%.
The Nasdaq closed in the red on Thursday as investors ditched the Magnificent Seven group of mega-cap tech stocks. The selloff came after Apple said it would hike the price of MacBooks and iPads, highlighting the impact the memory-chip shortage could have on its bottom line.
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Nasdaq Headed for Biggest Weekly Loss in Over a Year
Things aren’t looking good for the Nasdaq.
The tech-focused index is down 4.4% through Thursday—and premarket activity suggests more pain is on the way. Stock futures are lower, with chip stocks and memory makers among the biggest losers premarket.
If the losses hold through the session, that could put the index on pace for its biggest weekly drop since April 2025, when President Trump’s tariff war sent markets tumbling.
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27 Attractive Low-Price Dividend Dogs To Buy In June
Fredrik Arnold is a former quality service analyst. He is now reporting investment ideas with a primary focus on dividend yields by utilizing free cash flow and one-year total returns as trading indicators. He is the leader of the investing group The Dividend Dog Catcher, where he shares a minimum of one new dividend stock idea per week with focus on yield or extraordinary financial circumstances. All ideas are archived and available after weekly announcement. Learn more.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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