Trump Proposes Shift to Semiannual Earnings Reports for Public Companies

President Donald Trump has proposed that publicly traded U.S. companies transition from quarterly to semiannual earnings reporting, aiming to reduce operational costs and encourage long-term strategic planning among executives. Announced on September 15, 2025, via Truth Social, the proposal has ignited a debate among policymakers, business leaders, and investors.

In his post, President Trump stated, "Subject to SEC Approval, Companies and Corporations should no longer be forced to 'Report' on a quarterly basis... but rather to Report on a 'Six (6) Month Basis.'" He added, "This will save money, and allow managers to focus on properly running their companies." (washingtonpost.com)

The Securities and Exchange Commission (SEC) has mandated quarterly reporting for publicly traded companies since 1970, a practice intended to provide investors with timely and transparent financial information. This requirement was established to reduce information asymmetry and prevent companies from concealing financial difficulties during economic downturns. (washingtonpost.com)

Supporters of the shift to semiannual reporting argue that less frequent disclosures could alleviate the pressure on companies to meet short-term targets, thereby fostering sustainable growth. The Long-Term Stock Exchange (LTSE), a marketplace focused on encouraging companies to prioritize long-term goals, has been advocating for this change. LTSE plans to file a petition with the SEC to require companies to report earnings results semiannually, with the option to file quarterly. Maliz Beams, LTSE's CEO, stated, "This petition takes a critical step toward enabling genuinely long-term companies to focus on sustainable growth rather than quarterly noise." (washingtonpost.com)

However, critics warn that reducing reporting frequency might diminish transparency and delay the disclosure of financial risks to investors. They argue that quarterly reports provide investors with valuable financial updates and make them aware of any new risks a company is facing. David S. Koo, an assistant professor of accounting at the Donald G. Costello College of Business at George Mason University, noted that more frequent reporting often provides more context and perspective for investors who need to gauge a company's health and prospects. (washingtonpost.com)

Internationally, reporting practices vary. In the United Kingdom and several European Union countries, companies are required to file semiannual reports but can issue quarterly reports if they choose. This contrasts with the U.S. system, where quarterly reporting is mandatory. (washingtonpost.com)

The SEC, which would have to approve any changes, has indicated that it is prioritizing the review of this proposal. The process to implement such a change could take six to twelve months if pursued. (thetechcapital.com)

If implemented, this shift could have significant implications for corporate governance, investor relations, and market dynamics. Companies might experience reduced administrative burdens and potentially focus more on long-term strategies. However, investors may face challenges due to less frequent financial disclosures, potentially leading to increased market volatility and reduced transparency.

The debate over the frequency of corporate earnings reporting is not new. In 2018, Warren Buffett and Jamie Dimon advocated for doing away with quarterly guidance, though not earnings reports, arguing that it leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth, and sustainability. (washingtonpost.com)

As the SEC reviews President Trump's proposal, the business community and investors await potential changes that could reshape corporate reporting standards and influence the balance between transparency and long-term strategic planning.