Summary (TL;DR)
For investors, the key takeaway from Donald Trump’s recent call to scrap mandatory quarterly corporate earnings reports is the revival of a fundamental debate about what drives our markets: long-term strategy or short-term performance. In a social media post, Trump advocated for a six-month reporting cycle to help companies focus on growth and save on costs. This proposal has reignited a long-standing discussion, pitting those who believe the change would foster better long-range business planning against those who warn that less frequent updates would reduce transparency and increase risks for investors by creating information gaps.
The Core News (What Happened?)
On Monday, September 15, 2025, Donald Trump stated on social media that publicly traded companies should no longer be required to report their financial results every quarter. He urged the Securities and Exchange Commission (SEC), the primary regulator of U.S. stock markets, to consider a switch to a semi-annual (six-month) reporting system. Trump argued that such a change would “save money, and allow managers to focus on properly running their companies” rather than chasing short-term targets to please Wall Street.
Background (Setting the Stage)
Coming into the week, the debate over corporate reporting frequency was largely dormant in the public sphere, though it has been a recurring topic in financial circles for years. The SEC has mandated quarterly reporting on Form 10-Q since 1970 to ensure timely and transparent information for investors. However, influential business leaders, including JPMorgan CEO Jamie Dimon and Berkshire Hathaway CEO Warren Buffett, have previously criticized the market’s obsession with quarterly earnings guidance, arguing it promotes “short-termism,” an excessive focus on immediate profits at the expense of long-term investment and innovation.
Trump himself raised this same issue during his first term, asking the SEC to study the matter, though no changes were ultimately made. His latest comments bring the issue back into the political and financial spotlight.
The Debate (The Bull vs. Bear Case)
This proposal has split the financial community, creating two distinct narratives about its potential impact.
The Bull Case: On one hand, optimists believe this could lead to healthier, more stable long-term growth for American companies. Proponents, including the Long-Term Stock Exchange, argue that the intense pressure to meet quarterly earnings estimates forces executives to make shortsighted decisions, such as cutting spending on research and development or delaying beneficial projects just to make the numbers look good for a specific three-month period.10 They contend that a six-month cycle would free up management to focus on genuine value creation and reduce the significant costs associated with preparing and auditing quarterly reports.11 This, they argue, could also encourage more private companies to go public, as the regulatory burden would be lessened.
The Bear Case: On the other hand, cautious voices point to the critical loss of transparency and the potential for increased market volatility.12 Investor advocacy groups and institutional investors like BlackRock have previously defended quarterly reports as a vital tool for holding corporate management accountable. They argue that waiting six months for updates on a company’s financial health would leave investors in the dark about emerging risks and significant business changes.
Critics, such as analysts cited by CBS News, warn this could lead to bigger, more volatile stock price swings when results are finally released, as any surprises, positive or negative, would be magnified.13 Furthermore, a CFA Institute study of the United Kingdom’s move away from mandatory quarterly reporting found that it was associated with a decline in the accuracy of analysts’ earnings forecasts.14
By the Numbers (Key Data & Metrics)
- $2.57 million: The average audit fees for U.S. public companies in 2024, according to Audit Analytics. This figure highlights the significant compliance costs associated with financial reporting.
- 7,500 to 3,700: The number of U.S.-listed public companies fell from over 7,500 in 1997 to approximately 3,700 in 2025. Proponents of less frequent reporting argue that high regulatory burdens are a key reason for this decline.
- Since 1970: The year the SEC mandated quarterly financial reporting for public companies, establishing the current standard for market transparency.
- Form 10-Q: The official form filed with the SEC for a company’s quarterly report. It contains unaudited financial statements and an overview of the company’s performance.
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. The information provided is a synthesis of publicly available data and expert analysis and should not be considered a recommendation to buy or sell any security. Investing in the stock market involves risk, including the possible loss of principal. Past performance is not indicative of future results. Readers should consult with a qualified financial advisor to determine an investment strategy that is suitable for their own personal financial situation and risk tolerance.
