US Regulators Propose Allowing Public Companies to Report Earnings Twice a Year

2026-05-06 economy

Washington, Tuesday, 5 May 2026.
With White House approval, the SEC proposes letting public companies report earnings twice a year, aiming to save billions and end a 75-year-old focus on short-term Wall Street results.

A Fundamental Shift in Wall Street Reporting

On Tuesday, May 5, 2026, the U.S. Securities and Exchange Commission (SEC) formally proposed allowing public companies the option to file semiannual reports in place of standard quarterly filings [1]. This announcement follows White House approval secured on May 2, 2026, under the leadership of SEC Chairman Paul Atkins [5]. Under the newly proposed framework, companies could fulfill their periodic reporting obligations by submitting a new Form 10-S twice a year, rather than the traditional Form 10-Q every three months [2]. To facilitate this operational transition, the SEC is also proposing corresponding amendments to Regulation S-X, giving corporations more flexibility to select a reporting cadence that aligns with their specific business models [2].

Reversing the Public Market Exodus

This regulatory pivot is not merely an administrative update; it is a strategic response to a pronounced contraction in the U.S. public equities market [GPT]. Between 1998 and the present day in 2026, the number of publicly traded companies in the United States plummeted from over 7,000 to approximately 4,000 [4]. This represents a change of -42.857 percent over the period. Furthermore, the pipeline for new public entrants remains heavily constrained, with only about 200 traditional initial public offerings (IPOs) occurring in 2025 [4].

Global Precedents and Investor Protections

If the United States adopts semiannual reporting, it will be aligning itself with several major international financial hubs [GPT]. European markets, including the European Union and the United Kingdom, abolished mandatory quarterly reporting over a decade ago [4]. Similarly, the Australian financial system operates on a model of semiannual financial reports coupled with strict continuous-disclosure obligations [4]. Even in North America, the Canadian Securities Administrators (CSA) previously explored voluntary semiannual reporting for certain venture issuers back in 2021 as a conceptual approach to streamline corporate disclosure and reduce regulatory burdens [6].

The Path Forward for Investors and Regulators

The SEC is now entering a critical phase of public consultation to determine the final shape of this policy [GPT]. Regulators have opened a 90-day feedback period to gather input from investors, corporate executives, and market analysts [5] [alert! ‘The exact closing date of the feedback period is not explicitly dated in the sources, but based on the May 4-5 announcement, it will conclude in early August 2026’]. The Commission will evaluate whether the proposed framework successfully promotes a long-term economic outlook, reduces compliance costs, and increases flexibility without sacrificing essential transparency [2]. Following this review, the SEC will analyze the data and consider any necessary revisions before moving toward final approval [5].

Sources

corporate earnings SEC regulation