President Donald Trump has revived his call for US companies to move from quarterly earnings reporting to a semiannual schedule, arguing that the shift would cut costs, reduce short-termism, and align America more closely with global practices. The idea, first floated during his first term in 2018, is now being taken up again with backing from Treasury Secretary Scott Bessent, and has sparked a sharp debate on Wall Street.

Why Trump Is Pushing the Change

In a post on Truth Social, Trump said quarterly reporting forces companies to think in three-month increments rather than long-term growth.

“This will save money, and allow managers to focus on properly running their companies,” Trump wrote. He also invoked China, noting: “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!!!’”

Supporters argue that CEOs often chase short-term profits to please investors every quarter, instead of investing in research, innovation, or expansion. Treasury Secretary Bessent echoed this point, telling CNBC the move would “cut costs for public companies without harming investors” and potentially make the U.S. a more attractive listing destination.

Could It Make the U.S. More Attractive?

The U.S. once had more than 7,000 publicly listed companies in 1996. Today that number is closer to 3,700. Many firms now choose to remain private rather than face the costs and scrutiny of quarterly disclosures.

Trump’s proposal could tilt the scales back in favor of public markets. Aligning with Europe and the U.K. — where semiannual reporting is standard — might encourage more international firms to list in New York.

Nasdaq CEO Adena Friedman also voiced support, saying companies should be given flexibility to report less frequently if it helps minimize compliance costs.

Why Some Investors Push Back

For investors, quarterly reporting provides regular, timely updates on company performance. Transparency advocates warn that scaling back to just two updates a year could:

  • Reduce market efficiency by leaving investors in the dark longer.
  • Increase volatility when results finally arrive after long gaps.
  • Allow companies more leeway to hide or delay bad news.

Groups like the Council of Institutional Investors (CII) argue that frequent disclosures protect pension funds and retail investors who rely on timely financial data to make decisions. Academics caution that less reporting could also increase the risk of insider trading, as executives would hold nonpublic information for longer periods.

As Jill Fisch, a professor at the University of Pennsylvania law school, put it: “Our capital markets are the gold standard in the world for their efficiency and transparency. I don’t know that we want to be emulating markets that people view as less attractive.”

Advantages or Disadvantages for Businesses and Investors?

Advantages:

  • Cuts compliance costs and bureaucracy.
  • Reduces pressure on management to “beat” Wall Street estimates every three months.
  • Encourages longer-term investments in innovation, infrastructure, and strategy.

Disadvantages:

  • May create more pressure from investors in the two big reporting events each year.
  • Could still leave executives tempted to issue informal quarterly updates, blurring rules and practices.

For Investors?

Advantages:

  • Long-term investors like Warren Buffett and Jamie Dimon argue less frequent reporting could strengthen companies by curbing short-term profit-chasing.
  • Potentially makes U.S. stocks more attractive for foreign companies and could expand opportunities in the market.

Disadvantages:

  • Less frequent updates mean weaker transparency and higher risks for retail investors.
  • Market surprises and volatility could increase when semiannual reports finally land.
  • Fewer chances to detect fraud, mismanagement, or early signs of financial trouble.

Trump’s renewed push to end quarterly earnings reports reflects a long-standing corporate complaint about regulatory burden and “short-termism.” Businesses may welcome the relief, but investors — especially smaller ones — fear being left in the dark.

If the U.S. shifts to semiannual reporting, it would align with Europe and potentially make New York more attractive for foreign listings. But it could also weaken one of the defining strengths of U.S. markets: their transparency.

The Securities and Exchange Commission has signaled it is prioritizing the proposal at Trump’s request, but any change would require extensive debate — and could reshape how U.S. markets operate for decades.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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