US companies could report earnings twice a year under Trump's plan

President Donald Trump speaks in the Oval Office of the White House, Monday, Sept. 15, 2025, in Washington.

The US Securities and Exchange Commission (SEC) has indicated that it is giving priority to Trump’s proposal. Currently, corporations are required to report financial statements every 90 days. Moving to semiannual reporting would align the US with countries like the UK and several in the European Union.

Trump argues that semiannual reporting would save money and allow managers to focus on running their companies rather than being distracted by frequent reporting deadlines. He first proposed this change in 2018 and has now renewed his call.

Industry leaders have largely welcomed the proposal. Nasdaq CEO Adena Friedman expressed support, saying that less frequent reporting would reduce friction, burden, and costs for companies. Similarly, the US Chamber of Commerce and Business Roundtable have previously argued that quarterly reporting diverts companies’ attention from long-term goals.

Some investors worry that reporting less frequently could reduce transparency and increase market volatility. Critics caution that companies might use the extended reporting period to delay or obscure bad news, potentially making US stocks less attractive to certain investors.

Investors note that one reason US stocks trade at a premium compared to international markets is the country’s rigorous reporting standards. For example, the S&P 500 trades at 24.3 times expected earnings, compared with Europe’s STOXX 600 at 15.28 times. Experts also suggest that even if the SEC allows semiannual reporting, many companies may continue providing quarterly updates voluntarily.

US companies did not always report quarterly; this requirement was mandated in 1970. Prominent business leaders, including Jamie Dimon and Warren Buffett, have previously argued that quarterly reporting fosters short-termism, which can be harmful to the broader economy.

Experts are divided on the proposal’s potential impact. M. Todd Henderson of the University of Chicago believes companies may still voluntarily disclose quarterly, while Jill Fisch of the University of Pennsylvania warns that delaying the disclosure of economically significant events could reduce market efficiency. The debate highlights the tension between corporate flexibility and investor transparency.

Trump’s proposal could significantly reshape corporate reporting in the US, balancing cost savings and managerial focus against transparency for investors. While the SEC appears supportive, investor concerns and market dynamics will be critical in determining whether this change becomes a reality.

(Disclaimer: This slideshow has been sourced from Reuters)