Inside Out became the first movie of 2024 to earn more than $1 billion globally, making it the biggest-grossing film of the year.
It is the first animated film to hit the milestone since Warner Brothers' Barbie last year, and it has done so faster than any other.
It has kept the top spot at the box office for the last three weekends since its release on June 14.
The Pixar and Walt Disney collaboration is about Riley, a little girl who experiences various emotions as she learns and matures (joy, sadness, anger, fear, and disgust).
Following the popularity of the original film, which was released in 2015, the sequel adds additional emotions to the mix - Anxiety, Envy, Ennui, and Embarrassment - as Riley becomes a teenager.
The Disney Pixar movie has helped entice the coveted teen demographic (13-17) back into the auditorium.
Commenting on the achievement, the president and CEO of the National Association of Theatre Owners Michael O'Leary said: "On behalf of movie theatre owners across the country and around the world, we want to congratulate Disney's Inside Out 2 for grossing $1bn faster than any animated movie in history.