The Securities and Exchange Commission said Monday it is “prioritizing” President Donald Trump’s proposal to eliminate quarterly earnings reports, a move that would fundamentally alter corporate transparency requirements that have been in place for more than five decades.
Trump floated the idea in a Truth Social post Monday morning, suggesting companies should report financial results every six months instead of quarterly. “This will save money, and allow managers to focus on properly running their companies,” Trump wrote.
An SEC spokesperson confirmed the agency is actively pursuing the proposal “to further eliminate unnecessary regulatory burdens on companies” at Trump’s request. The commission, led by Trump appointee Paul Atkins, currently has a 3-1 Republican majority.
The change would end a requirement dating to 1970 and bring US practices closer to those in Europe and the United Kingdom, where companies typically report semiannually.
Trump previously raised the issue during his first term in 2018, when the SEC studied the matter but made no recommendations before he left office.
Supporters argue quarterly reporting creates excessive focus on short-term results at the expense of long-term strategy. Warren Buffett and JPMorgan Chase CEO Jamie Dimon have previously criticized the system, writing that quarterly guidance “often leads to an unhealthy focus on short-term profits.”
Critics warn that less frequent reporting could delay crucial economic intelligence. “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. “Having to wait six months for official results, I just think would cause more difficulties than it would add benefits.”
Critics warn that less frequent reporting could delay crucial economic intelligence. Quarterly reports from major companies currently provide early indicators of economic trends, from travel demand to loan losses and artificial intelligence developments.
Any rule change would require months of regulatory review and public comment before implementation. The proposal would not require Congressional approval, needing only a majority SEC vote.
The Long-Term Stock Exchange, backed by major investors including Andreessen Horowitz, plans to petition the SEC separately to eliminate quarterly reporting requirements.
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