U.S. President Donald Trump has reignited a long-standing debate on Wall Street, proposing that publicly listed companies should stop filing quarterly earnings reports and instead move to a semiannual reporting system.
The idea, announced on Truth Social and confirmed later by the Securities and Exchange Commission (SEC), is being actively studied by regulators at the President’s request.
An SEC spokesperson stated: “At President Trump’s request, Chairman Paul Atkins and the SEC are prioritizing this proposal to reduce unnecessary regulatory burdens on companies.”
Trump argues that switching to semiannual reporting will help businesses save costs and allow executives to focus on long-term strategy rather than chasing short-term profits.
He wrote: “China runs its companies with a 50- to 100-year vision, while we are stuck with quarterly earnings. Not good!!!”
This is not the first time the practice has been questioned. Back in 2018, Warren Buffett and Jamie Dimon co-authored a Wall Street Journal op-ed urging the end of quarterly earnings guidance, warning that it often undermines long-term growth and sustainability.
Currently, U.S. law requires companies to publish earnings reports every quarter, though issuing forward guidance is optional. A shift to semiannual reports would not require Congressional approval but rather a majority vote within the SEC.
With Republicans holding a 3-1 majority on the commission and one vacant seat, analysts believe the proposal has a realistic chance of success. Implementation could take six to twelve months if the SEC pushes ahead.
Sarah Bianchi, chief strategist at Evercore ISI, noted: “With President Trump’s directive, this is a scenario that must be taken seriously. However, the SEC has historically operated with some degree of independence.”
Supporters of quarterly reporting argue it ensures timely transparency for investors and keeps companies accountable.
Art Hogan, chief market strategist at B. Riley Wealth Management, said: “Waiting six months for official results would create more problems than benefits. Investors need frequent updates to make informed decisions.”
On the other hand, proponents of semiannual disclosure say less frequent reporting would reduce market short-termism, giving companies breathing room to pursue sustainable long-term strategies.
If adopted, the U.S. would align more closely with reporting practices in the U.K. and the European Union, where companies typically disclose earnings twice a year, while retaining the option for quarterly updates.
In contrast, China requires both quarterly and semiannual filings, making its system stricter than the U.S.
The change could reshape investor behavior, corporate governance, and global perceptions of U.S. market transparency.
Reduced transparency risk: Investors may face more uncertainty with fewer data points.
Potential for stronger long-term growth: Companies can prioritize strategy over quarterly earnings pressure.
Global alignment: The U.S. could move closer to European reporting models, though critics say American markets are unique and require more frequent disclosure.
1. What exactly did President Trump propose?
He suggested ending mandatory quarterly earnings reports and moving to semiannual disclosure.
2. Does this require Congress to approve?
No. The SEC can change the rule through a majority vote.
3. Why would companies benefit?
They could save money, reduce compliance burdens, and focus on long-term strategies.
4. What are the risks for investors?
Less frequent updates may lower transparency and increase market volatility.
5. How does this compare internationally?
The U.K. and EU use semiannual reporting, while China mandates quarterly reports in addition to semiannual and annual filings.
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