Schwarzenegger wanted to move from bodybuilding into acting, finally achieving it when he was chosen to play the title role in Hercules in New York (1970). Credited under the stage name "Arnold Strong," his accent in the film was so thick that his lines were dubbed after production. His second film appearance was as a mob hitman in The Long Goodbye (1973), which was followed by a much more significant part in the film Stay Hungry (1976), for which he won the Golden Globe Award for New Star of the Year – Actor. Schwarzenegger has discussed his early struggles in developing his acting career: "It was very difficult for me in the beginning – I was told by agents and casting people that my body was 'too weird,' that I had a funny accent, and that my name was too long. You name it, and they told me I had to change it. Basically, everywhere I turned, I was told that I had no chance."
Schwarzenegger's breakthrough film was the sword and sorcery epic Conan the Barbarian in 1982, which was a box-office hit. This was followed by a sequel, Conan the Destroyer, in 1984, although it was not as successful as its predecessor. In 1983, Schwarzenegger starred in the promotional video Carnival in Rio. In 1984, he made his first appearance as the eponymous character in James Cameron's science fiction action film The Terminator. It has been called his acting career's signature role. Following this, Schwarzenegger made another sword and sorcery film, Red Sonja, in 1985. During the 1980s, audiences had an appetite for action films, with both Schwarzenegger and Sylvester Stallone becoming international stars. During the Schwarzenegger-Stallone rivalry, they attacked each other in the press and tried to surpass the other with more on-screen killings and larger weapons. Schwarzenegger's roles reflected his sense of humor, separating him from more serious action hero films. He made a number of successful action films in the 1980s, such as Commando (1985), Raw Deal (1986), The Running Man (1987), Predator (1987), and Red Heat (1988). Twins (1988), a comedy with Danny DeVito, also proved successful. Total Recall (1990) netted Schwarzenegger $10 million (equivalent to $23.3 million today) and 15% of the film's gross. A science fiction script, the film was based on the Philip K. Dick short story "We Can Remember It for You Wholesale". Kindergarten Cop (1990) reunited him with director Ivan Reitman, who directed him in Twins. Schwarzenegger had a brief foray into directing, first with a 1990 episode of the TV series Tales from the Crypt, entitled "The Switch," and then with the 1992 telemovie Christmas in Connecticut. He has not directed since.
Schwarzenegger's commercial peak was his return as the title character in Terminator 2: Judgment Day (1991), which was the highest-grossing film of the year. Film critic Roger Ebert commented that "Schwarzenegger's genius as a movie star is to find roles that build on, rather than undermine, his physical and vocal characteristics." In 1993, the National Association of Theatre Owners named him the "International Star of the Decade." His next film project, the 1993 self-aware action comedy spoof Last Action Hero, was released opposite Jurassic Park and did not do well at the box office. His next film, the comedy-drama True Lies (1994), was a popular spy film and saw Schwarzenegger reunited with James Cameron. That same year, the comedy Junior was released, the last of Schwarzenegger's three collaborations with Ivan Reitman and again co-starring Danny DeVito. This film brought him his second Golden Globe nomination, this time for Best Actor – Motion Picture Musical or Comedy. It was followed by the action thriller Eraser (1996), the Christmas comedy Jingle All The Way (1996), and the comic book-based Batman & Robin (1997), in which he played the supervillain Mr. Freeze. This was his final film before taking time to recuperate from a back injury. Following the critical failure of Batman & Robin, his film career and box office prominence went into decline. He returned with the supernatural thriller End of Days (1999), later followed by the action films The 6th Day (2000) and Collateral Damage (2002), both of which failed to do well at the box office. In 2003, he made his third appearance as the title character in Terminator 3: Rise of the Machines, which went on to earn over $150 million domestically (equivalent to $248 million today). In tribute to Schwarzenegger in 2002, Forum Stadtpark, a local cultural association, proposed plans to build a 25-meter-tall (80 ft) Terminator statue in a park in central Graz. Schwarzenegger reportedly said he was flattered, but thought the money would be better spent on social projects and the Special Olympics.