President Trump Proposes Semiannual Earnings Reporting for US Companies

On September 15, 2025, President Donald Trump proposed that publicly traded U.S. companies transition from quarterly to semiannual earnings reporting. He announced this initiative on Truth Social, asserting that reducing the frequency of financial disclosures would decrease operational costs and enable executives to concentrate more on long-term business strategies.

The U.S. Securities and Exchange Commission (SEC) has acknowledged the proposal and is currently prioritizing its review. Supporters argue that less frequent reporting could alleviate the pressure of short-term performance metrics, while critics warn it might reduce transparency and delay the disclosure of financial risks.

Background on Quarterly Reporting Requirements

The SEC has mandated quarterly earnings reports for publicly traded companies since 1970. This requirement was instituted to provide investors with timely and consistent financial information, thereby enhancing market transparency and investor confidence. Prior to this, companies were only required to report earnings semiannually.

Previous Discussions on Reporting Frequency

This is not the first time the frequency of earnings reporting has been debated. During his first term, President Trump suggested the SEC examine the possibility of reducing reporting frequency, but no changes were implemented at that time. Prominent business leaders, including Warren Buffett and JPMorgan Chase CEO Jamie Dimon, have also criticized quarterly reporting, arguing that it promotes short-termism in corporate management.

International Reporting Practices

Globally, reporting practices vary:

• United Kingdom and European Union: Companies are required to disclose financial information semiannually, with the option to provide quarterly updates.
• China: Companies are required to file both quarterly and semiannual reports.
• Hong Kong: Firms report every six months.

Arguments For and Against Semiannual Reporting

Supporters' Viewpoint:

• Cost Reduction: Less frequent reporting could lower administrative expenses associated with preparing and auditing financial statements.
• Long-Term Focus: Semiannual reporting may encourage executives to prioritize sustainable growth over short-term earnings targets.

Critics' Concerns:

• Reduced Transparency: Less frequent disclosures might limit investors' access to timely information, potentially increasing market volatility.
• Delayed Risk Disclosure: Financial risks or downturns could remain undisclosed for longer periods, affecting investor decision-making.

SEC's Role and Potential Actions

Any change to the reporting schedule would require SEC approval or legislative action. The SEC has acknowledged President Trump's proposal and is currently prioritizing its review.

Potential Implications

• Investor Relations: A shift to semiannual reporting could alter how investors assess company performance and make investment decisions.
• Market Dynamics: Changes in reporting frequency might influence stock price volatility and market efficiency.
• Corporate Strategy: Companies may adjust their strategic planning and communication practices in response to new reporting requirements.

Conclusion

President Trump's proposal to shift from quarterly to semiannual earnings reporting has sparked a renewed debate on balancing transparency with operational efficiency. As the SEC reviews this proposal, stakeholders across the financial spectrum are weighing the potential benefits and drawbacks of such a significant change in corporate reporting standards.