US companies should not have to issue financial reports every three months but instead move to a system of semiannual reporting, President Donald Trump said on Monday. In a post on Truth Social, Trump revisited a long-standing idea he had pushed during his first administration, saying that such a change could ease corporate burdens and give executives more freedom to concentrate on building their businesses rather than meeting constant deadlines.
“This will save money, and allow managers to focus on properly running their companies,” Trump wrote, noting that the decision would ultimately rest with the Securities and Exchange Commission (SEC). At present, the SEC requires all publicly traded companies to file reports every 90 days, a rule that has been in place for decades. Shifting to a six-month schedule would represent a major change for corporate America and would align the US with practices in the United Kingdom and much of Europe, where companies are not required to disclose earnings as frequently.
The idea is not entirely new. In 2018, top business leaders including JPMorgan Chase CEO Jamie Dimon and Berkshire Hathaway’s Warren Buffett argued in a widely circulated opinion piece that quarterly reporting contributes to “short-termism,” a phenomenon where companies prioritize immediate results over longer-term growth. They suggested that the constant pressure to meet Wall Street’s expectations could harm the overall economy by discouraging innovation and long-term investment. Trump, echoing that argument at the time, asked the SEC to consider revising its reporting rules, though the proposal did not move forward.
The debate over quarterly versus semiannual reporting has divided investors, policymakers, and executives for years. Supporters of longer reporting intervals believe that the current system forces companies into a near-constant cycle of preparing earnings releases, investor calls, and forecasts, leaving less time for strategic planning. Burns McKinney, managing director and portfolio manager at NFJ Investment Group in Dallas, said in an email that the focus on quarterly projections often pushes companies toward decisions that satisfy immediate expectations but fail to strengthen long-term fundamentals. “From the perspective of better capital allocation by public companies, the focus on meeting quarterly earnings projections can lead to decisions based on short-term implications, when we would prefer management keep their eye on the long-term ball,” he explained.
Others in the investment community echoed similar views. Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago, described quarterly reporting as repetitive and often unnecessary. He noted that while transparency is important, not much usually changes from one quarter to the next. “Having the reporting every quarter does put companies in a position where they are almost always preparing their quarterly reports. And not much usually changes quarter to quarter,” he said, pointing out that freeing management from this treadmill could improve efficiency.
Still, many investors remain cautious. Critics argue that less frequent reporting would reduce transparency and could introduce greater risks into financial markets. Quarterly updates provide a steady stream of information for shareholders, regulators, and analysts, which helps reduce uncertainty and maintain investor confidence. Without that level of visibility, some fear that companies might withhold key information for longer periods, leading to more volatility and potentially making US markets less attractive compared to global competitors.
Supporters of quarterly reporting also highlight one of the US stock market’s enduring strengths: its reputation for higher disclosure standards. That transparency has been cited as a key reason why US equities often trade at a premium compared to international stocks. Recent figures show the benchmark S&P 500 index priced at about 24 times expected earnings for the next 12 months, whereas Europe’s STOXX 600 trades at closer to 15 times. This valuation gap, investors argue, reflects a higher degree of trust in US financial markets.
Trump’s renewed interest in the issue comes at a time when corporate America faces mounting pressure from multiple directions, including higher borrowing costs, inflationary pressures, and geopolitical tensions. Simplifying compliance requirements could be seen as a way to give businesses some relief, but the matter remains highly contentious. The SEC has not provided a comment in response to Trump’s latest remarks, and any move toward changing reporting rules would likely face significant debate before adoption.
It is also worth noting that semiannual reporting would not be unprecedented in the US. Prior to 1970, companies were not required to issue quarterly results, and the SEC only introduced the mandate later in an effort to increase transparency and standardize financial disclosure. Proponents of reverting to the earlier system suggest that today’s highly digital and fast-moving markets could adapt well to fewer reports, while detractors insist that going backward could harm investor protections.