SEC Backs Trump’s Proposal To Shift Earnings Reports From Quarterly To Semiannual

Authored by Andrew Moran via The Epoch Times,

The Securities and Exchange Commission (SEC) intends to propose a rule change that would shift corporate earnings reporting from a quarterly schedule to a semiannual basis.

Paul Atkins, head of the Wall Street regulatory watchdog, told CNBC’s “Squawk Box” on Sept. 10 that he welcomed President Donald Trump’s suggestion for the adjustment.

“In principle, I think to propose change in what our rules are now, I think would be a good way forward, and then we’ll consider that and move forward after that,” Atkins said.

Last week, in a Truth Social post, Trump stated that companies “should no longer be forced to ’report’” every three months, recommending a six-month disclosure requirement instead.

“This will save money and allow managers to focus on properly running their companies,” Trump said on his social media platform.

The current law was enacted in 1970, following the traditional semiannual practice.

If the proposal is approved, it will be left to the market to decide whether to maintain quarterly earnings reporting or transition to a six-month reporting period, Atkins noted.

“For the sake of shareholders and public companies, the market can decide what the proper cadence is,” he said.

When asked whether the change would adversely impact retail investors, Atkins noted that there is a diverse array of tools that disseminate information about businesses, stocks, and the economy. He added that investors—professional and retail—obtain information primarily from earnings calls with CEOs and CFOs.

“I think it’s a good time to look at the whole panoply of ways that people get information and how it’s disseminated and what’s fit for purpose,” the SEC chief said.

“I think that’s what we’re intending to do.”

According to Atkins, there has been a discussion on this issue for the past few years, with experts stating that quarterly reporting “emphasizes a short-term type of thinking.”

During his first term, Trump wrote on X (then Twitter) that global business leaders told him that a semiannual regimen “would make business (jobs) even better in the U.S.”

“’Stop quarterly reporting & go to a six month system’ said one,” Trump wrote in 2018.

“That would allow greater flexibility & save money. I have asked the SEC to study!”

While then-SEC Chairman Jay Clayton initiated a review shortly after the president’s comments, a report determined that quarterly requirements lead to “greater transparency of information and a lower cost of capital for companies seeking to raise funds.”

The study did note, however, that issuing guidance does tie executives to “short-term thinking.”

Anupam Satyasheel, founder and CEO of Occams Advisory, a global financial advisory firm, says it is a “welcome move” as quarterly reporting places “massive pressure” on companies.

“It doesn’t allow them time to adjust to economic cycles, and then the relentless pressure of analysts adds to business decisions and business forecasts,” Satyasheel told The Epoch Times.

The New York Stock Exchange in New York City on April 4, 2025. Samira Bouaou/The Epoch Times

Switching to semiannual reporting, he says, will reduce “the short-term focus.”

“Overall, I feel that semiannual reporting is a step in the right direction and will be welcomed by public companies,” Satyasheel added.

At the same time, there could be downside risks, such as the potential decrease in transparency, according to Marc Fandetti, portfolio strategist at Armstrong Advisory Group.

“As regulators consider reducing reporting frequency, they should weigh not just the savings but also the potential losses—losses to investors resulting from less transparency and to the economy resulting from impaired market efficiency,” Fandetti wrote for the CFA Institute.

If approved, the United States would join China, the UK, Australia, Japan, and many other countries that maintain the semiannual mandate for publicly listed companies on their stock exchanges.