On September 15, 2025, President Donald Trump reignited a longstanding debate at the heart of American corporate life: should publicly traded companies continue reporting their earnings every three months, or is it time to scale back to a twice-yearly schedule? In a post on Truth Social, Trump called on the Securities and Exchange Commission (SEC) to shift from the quarterly reporting regime that has defined U.S. markets for more than half a century to a semiannual system. His argument? Less frequent reporting would "save money, and allow managers to focus on properly running their companies."
This isn’t the first time Trump has floated the idea. During his first term, he asked the SEC to study the implications of semiannual reporting, but the proposal never moved beyond the exploratory phase. Now, with Republicans holding a 3-1 majority on the SEC and one seat open, the conversation is gaining new momentum. According to CNBC, the rules could be changed by a majority vote of the commission—no need for Congressional approval. Still, the process would likely take six to twelve months, even if the political will exists.
Supporters of Trump’s push say the change could help reverse a years-long decline in the number of publicly traded firms in the U.S., as the regulatory burden of quarterly reports is often cited as a deterrent for companies considering going public. The Long-Term Stock Exchange, a trading platform that champions sustainable business practices, recently announced its intention to formally ask the SEC to permit semiannual reporting, as reported by The Wall Street Journal. Norway’s sovereign wealth fund has also advocated for the move, arguing that it would allow companies to focus on long-term growth rather than the relentless drumbeat of quarterly expectations.
Veteran investors Warren Buffett and JPMorgan Chase CEO Jamie Dimon have added their influential voices to the debate. In a 2018 op-ed for The Wall Street Journal, they wrote, "In our experience, quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability." Their view is echoed by the U.S. Chamber of Commerce and the Business Roundtable, both of which have previously called for companies to move away from quarterly guidance, arguing that it distracts from big-picture planning and can ultimately harm investors.
But not everyone is convinced. Critics warn that less frequent reporting would erode the transparency that has made U.S. capital markets the envy of the world. "When you weigh this out and put it on a whiteboard, the pros of quarterly reporting outweigh the cons," said Art Hogan, chief market strategist at B. Riley Wealth Management, in an interview with CNBC. "Having to wait six months for official results, I just think would cause more difficulties than it would add benefits." The Council of Institutional Investors, which represents major retirement funds, has also argued that quarterly reports enable investors to make timely decisions about companies’ progress and help regulators spot financial crimes or other issues before they spiral out of control.
Transparency advocates go further, cautioning that longer gaps between official disclosures could give companies more leeway to hide or delay the release of bad news. Jill Fisch, a professor at the University of Pennsylvania law school and an expert in securities regulation, told Reuters, "Our capital markets are the gold standard in the world for their efficiency and transparency. I don't know that we want to be emulating markets that people view as less attractive."
There’s also the matter of market efficiency. The U.S. S&P 500 index currently trades at a premium—24.3 times earnings estimates for the next 12 months—compared to Europe’s STOXX 600 at 15.28 times, according to data compiled by LSEG and cited by Reuters. Many believe this premium is due, at least in part, to the transparency provided by frequent reporting. If the U.S. were to scale back, some fear it could make American stocks less attractive to global investors.
Trump, for his part, has framed the issue as a matter of global competitiveness. In his Truth Social post, he asked, "Did you ever hear the statement that, 'China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis??? Not good!!!'" He argued that adopting a semiannual schedule would bring the U.S. more in line with practices in the U.K. and many EU countries, where companies are required to report only twice a year. However, as CNBC points out, the comparison is not perfect: while companies listed on the Hong Kong exchange report every six months, Chinese firms must file quarterly, semiannual, and annual reports—sometimes making their requirements even more stringent than those in the U.S.
For now, the SEC has stayed silent. The agency did not immediately respond to requests for comment from multiple outlets, including BBC, CNBC, and Reuters. The SEC’s current leadership, including chair Paul Atkins, has previously criticized disclosure requirements that companies consider burdensome. The agency’s most recent regulatory agenda, published earlier this month, mentioned possible changes to "rationalize" company disclosures, suggesting the door is at least cracked open for reform.
It’s worth noting that U.S. companies didn’t always report quarterly. The SEC only mandated the practice in 1970, shifting from the semiannual standard that had prevailed before. Since then, quarterly reports have become a fixture of Wall Street, with earnings calls often turning into high-stakes events. In fact, some executives have grown so weary of the ritual that they’ve begun outsourcing parts of it to technology: Eric Yuan, CEO of Zoom Communications, recently used an AI-generated avatar to read scripted remarks before taking over to answer analysts’ questions live, as reported by The New York Times.
Quarterly reporting has its quirks. Analysts widely expect companies to lower expectations just before earnings season, so they can "surprise" investors and boost their stock prices. In the most recent quarter, over 80% of S&P 500 companies managed to beat analysts’ earnings forecasts, according to FactSet data cited by The New York Times. This dance between companies and the market has led some to question whether the system is truly serving long-term investors.
As for what happens next, the ball is firmly in the SEC’s court. The White House declined further comment on Trump’s post, while the SEC has yet to signal whether it will take up the proposal in earnest. According to Sarah Bianchi, chief strategist at Evercore ISI and a former U.S. deputy trade representative, "Administrations have to varying degrees given policy steers to the SEC, and with Trump's directive this is now something that has to be taken seriously as a possibility. However, the SEC has also historically been able to operate with some measure of independence."
Ultimately, the debate over quarterly versus semiannual reporting is about more than paperwork. It’s a reflection of competing philosophies about how best to balance transparency, efficiency, and long-term growth in the world’s largest economy. Whether the U.S. sticks with its tradition or moves toward a model embraced elsewhere, the outcome will shape how investors, executives, and the public understand the companies that drive American prosperity for years to come.
