President Trump on Monday suggested that U.S. public companies should no longer have to report earnings every quarter, but instead move to a six-month reporting schedule. He argued that this would save money and let executives spend more time focusing on running their companies rather than preparing for short-term results.
In a Truth Social post, Trump compared the U.S. system to long-term planning in other parts of the world, saying, “Did you ever hear the statement that, ‘China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???’ Not good!!!”
Quarterly reporting has been required by the Securities and Exchange Commission (SEC) since 1970, so any change would need the agency’s approval. This debate has surfaced before, including during Trump’s first term, and has been supported by high-profile business leaders like Jamie Dimon and Warren Buffett. They argue that quarterly reporting pushes companies to focus too heavily on immediate profits rather than long-term strategy, and creates unnecessary costs for smaller firms.
However, critics caution that simply reducing the frequency of required reports may not actually solve the problem. Dennis Kelleher, CEO of Better Markets, said that the real issue is getting boards of directors to encourage long-term planning among executives. Without that, shifting to semiannual reporting might just reduce transparency for investors without improving corporate behavior.
Some analysts believe Trump’s latest remarks could give the proposal momentum. TD Cowen noted that given his administration’s push to scale back regulations, the idea has moved “from improbable to probable though not guaranteed.” The next step will depend on whether the SEC takes up Trump’s suggestion and how aggressively it chooses to act on it.