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Trump Backs Shift to Semiannual Earnings Reports for U.S. Companies

Trump Backs Shift to Semiannual Earnings Reports for U.S. Companies. Source: The White House, Public domain, via Wikimedia Commons

President Donald Trump has renewed his call for U.S. companies to move from quarterly to semiannual earnings reporting, a change the Securities and Exchange Commission (SEC) is now prioritizing. Trump argued on Truth Social that reducing reporting frequency would lower compliance costs and discourage corporate short-termism, aligning U.S. practices with the U.K. and European Union.

Currently, publicly traded firms must release financial results every 90 days. The SEC had previously explored changes in 2018 but retained the quarterly system. This time, the agency signaled stronger support, saying the move would ease regulatory burdens.

Supporters, including Nasdaq CEO Adena Friedman, say less frequent reporting would reduce costs and administrative hurdles for listed companies. Major corporate leaders like Jamie Dimon and Warren Buffett have also criticized quarterly earnings pressure, claiming it distracts businesses from long-term goals. The U.S. Chamber of Commerce and Business Roundtable have echoed similar concerns.

However, critics warn that longer gaps between disclosures could reduce transparency and increase market volatility. Transparency advocates argue it could enable companies to delay revealing bad news. Investors note that U.S. equities often command higher valuations partly due to stringent reporting standards. For instance, the S&P 500 trades at a premium compared to Europe’s STOXX 600, according to LSEG data.

Legal experts suggest that even if quarterly reporting requirements end, many firms may still release updates to satisfy investor demand. Quarterly reporting became mandatory in 1970, and its removal would mark a major regulatory shift.

While some see semiannual reporting as a way to strengthen long-term corporate strategy, others caution that it risks undermining the efficiency and transparency that make U.S. capital markets globally attractive.

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