NEW YORK (AP) — Hollywood has kicked off 2026 with “Avatar: Fire and Ash” topping the box office for the third straight week, bringing optimism for a year filled with blockbusters after a disappointing 2025.

In just three weeks since its release, “Fire and Ash” has surpassed $1 billion worldwide, collecting $40 million during its third weekend in North America, as per studio estimates.

The film has primarily thrived overseas, earning $777.1 million internationally. The Walt Disney Co. celebrated this success, calling it a “monumental achievement for James Cameron’s groundbreaking franchise.”

The holiday week significantly contributed to ticket sales, with various films also capturing audience attention, including Sydney Sweeney and Timothée Chalamet’s 'Zootopia 2' at a close second, grossing $19 million.

The animated sequel has accumulated $1.59 billion across six weeks, positioning it as Disney’s second-highest-grossing animated film.

“The Housemaid,” starring Sweeney, also performed well, taking $14.9 million this weekend, bringing its total to $75.7 million domestically.

Chalamet’s “Marty Supreme” grossed an estimated $12.6 million, indicating strong performances from the cast and various films.

With an overall increase in sales, up 26.5% from the same weekend in 2025, industry experts remain cautiously optimistic about a significant comeback in 2026.

The movie industry, however, acknowledges the poor year of 2025, where ticket sales fell significantly below pre-pandemic levels, leading to an expected shake-up with potential mergers on the horizon.

Overall, with a slate of anticipated movies expected to release this year, the future of Hollywood looks promising.