Trump Proposes Shift to Semi-Annual Earnings Reports for U.S. Companies
Washington, D.C., Tuesday, 16 September 2025.
President Trump suggests eliminating quarterly earnings reports to reduce compliance costs and encourage long-term planning. This move could affect market transparency and investor confidence.
Context and Implications
In a move that could significantly reshape corporate financial reporting in the United States, President Donald Trump has proposed eliminating the requirement for public companies to submit quarterly earnings reports. Announced on September 15, 2025, this proposal suggests shifting to a semi-annual reporting system. The administration argues that such a change would reduce compliance costs for businesses and encourage long-term investment strategies, alleviating the short-term pressures associated with quarterly disclosures [1][2].
Rationale and Support
Supporters of the proposal argue that quarterly earnings reports are burdensome, costly, and often push companies toward short-termism, where executives prioritize meeting quarterly targets at the expense of longer-term strategic planning. Proponents believe that by adopting a semi-annual reporting system, companies would save resources and be better positioned to focus on sustainable growth. This sentiment is echoed by some market analysts who suggest that the current reporting frequency creates unnecessary volatility in stock prices, with significant fluctuations often observed around earnings release days [1][3].
Potential Drawbacks and Criticisms
Despite the potential benefits touted by Trump’s administration and its supporters, the proposal has faced significant criticism. Opponents argue that quarterly reports provide crucial transparency and timely updates to investors, allowing for informed decision-making. Reducing the frequency of these reports could diminish the availability of financial data, potentially leading to decreased investor confidence and increased market volatility. Critics claim that less frequent reporting may particularly disadvantage smaller companies that rely on regular disclosures to maintain investor trust [2][4].
Future Prospects and Regulatory Path
For Trump’s proposal to become a reality, it would require the approval of the U.S. Securities and Exchange Commission (SEC), a process that involves multiple regulatory steps and public consultations. The SEC has mandated quarterly reports since 1970, and any changes to this long-standing practice would involve significant deliberation and potential pushback from various stakeholders in the financial industry. If approved, the earliest implementation of this new policy could occur in 2026, pending detailed economic analyses and regulatory clearance. As of now, the SEC has not issued a formal response to the proposal, leaving its future uncertain [1][3][4].