Currently, companies are required to report quarterly earnings, but forecasts are voluntary
President Donald Trump on Monday asked the Securities and Exchange Commission (SEC) to consider making rules that would require US companies to report semiannual earnings instead of quarterly.
Posting on Truth Social, Trump said the shift would “save money, and allow managers to focus on properly running their companies.” He added that China focuses on a “50 to 100 year view on management of a company,” while America does it quarterly.
Analysts, however, point out that Chinese companies must also file quarterly, semiannual, and annual reports, whereas firms listed in Hong Kong report only twice a year.
Quarterly reporting has long been debated, with billionaire investor Warren Buffett and JPMorgan Chase CEO Jamie Dimon advocating for it. In a Wall Street Journal opinion piece, they had previously called quarterly guidance a distraction, though not opposing earnings reports themselves.
The SEC requires companies to report quarterly earnings, but forecasts are voluntary.
Supporters of the current system stress that more frequent reporting ensures transparency and timely information for investors.
The SEC confirmed it is reviewing President Trump’s request. Any decision by the commission will need voting approval, and with Republicans holding a 3-1 majority, that could make adoption possible within six to 12 months.
If implemented, Trump’s proposal would align US practices more closely with Europe.