US President Donald Trump on Monday proposed ending the requirement for publicly listed companies in the United States to report earnings every quarter, suggesting a shift to a half-yearly system similar to practices in the European Union.
“Subject to SEC Approval, Companies and Corporations should no longer be forced to ‘Report’ on a quarterly basis… but rather to Report on a ‘Six (6) Month Basis,’” Trump posted on his Truth Social platform.
He argued the change would give corporate managers more time to “focus on properly running their companies.”
The US Securities and Exchange Commission (SEC) has mandated quarterly reporting since 1970. Trump previously floated the idea during his first term, but it has remained a point of debate among regulators and corporate leaders.
Advocates of semiannual reporting say it allows companies to prioritize long-term growth instead of short-term performance targets, while also reducing the costs of frequent reporting. The system is common in Europe and the United Kingdom, though many major EU firms still issue quarterly results voluntarily.
Sam Stovall of CFRA Research said the shift could save companies money but warned it could also increase market volatility. “You would have less guidance (and) resetting of expectations,” he told AFP.
The SEC would have to approve any such change before it could take effect.
