A Trump change to the way companies report earnings could reshape how you track — and manage your investments

The rhythm of Wall Street — driven by quarterly earnings calls — could be about to change. President Donald Trump is proposing that companies only report results twice a year, a move that could shift how investors spot opportunities and manage risk.

Trump renewed his call on September 15, saying publicly-traded businesses should be allowed to report earnings every six months instead of quarterly.

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Currently, the Securities and Exchange Commission (SEC) requires all public companies — meaning those that sell shares on the stock market — to file a Form 10-Q three times a year [1]. This report includes earnings, financial performance and management analysis.

These snapshots of a company’s financial position give both regulators and investors key information to help predict how a stock might perform.

What do experts say about the potential shift?

Shifting from quarterly reporting to semiannual reporting would reduce the regulatory burden on publicly traded companies. But supporters of the current system argue that the transparency frequent reports provide is too valuable to lose [2].

“The pros of quarterly reporting outweigh the cons … Having to wait six months for official results, I just think, would cause more difficulties than it would add benefits,” said Art Hogan, chief market strategist at B. Riley Wealth Management.

Not all financial experts oppose changing filing frequency. In 2018, Warren Buffett and JPMorgan Chase CEO Jamie Dimon co-authored an op-ed that supported an end to quarterly reporting [3].

“In our experience, quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability,” they wrote.

Trump’s proposal would bring U.S. policy more in line with the U.K. and European Union, where companies are required to file semiannually but can issue quarterly reports if they choose [4].

Buffett and Dimon aside, market watchers say the U.S. isn’t comparable to overseas markets. Hogan pointed out that America’s largest corporations — think trillion-dollar tech giants — operate at a scale and growth rate that make frequent disclosures more valuable.

“How many companies in the European markets have trillion-dollar market caps and are growing revenues at 60% a year or have gross margins that are north of 50%?” he said. “The investor is better suited to having more information than less frequent information.”

Logistically, changing the reporting schedule is possible. The quarterly filing requirement was set by the SEC, so changing it would require a majority vote, and Republicans currently hold the majority.

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What could this mean for smaller investors?

For everyday investors, less frequent earnings reports could mean fewer chances to evaluate how companies are performing. That makes it harder to catch early warning signs or spot opportunities.

If updates only come twice a year, they’re likely to carry more weight — potentially causing sharper swings in stock prices and creating more anxiety for smaller investors.

Professional traders often have access to advanced research tools and may adapt quickly, but individuals who rely on quarterly disclosures could feel left behind. On the other hand, fewer reporting deadlines might give companies more breathing room to focus on long-term strategy instead of chasing short-term profits. That could benefit consumers if it leads to more sustainable business practices and better products.

If reporting requirements change, here are a few ways smaller investors and consumers can continue to make smart investment decisions:

• Look beyond earnings reports: Use annual filings, company announcements and industry news to fill in the gaps.

• Diversify your investments: Spread money across sectors and asset types to help cushion against volatility.

• Keep a long-term mindset: Market swings may be more pronounced — sticking to multi-year goals can help you avoid impulsive decisions.

• Use professional tools or advisors: Financial advisors and research platforms can provide insight if transparency decreases.

While the SEC considers Trump’s proposal, one thing is clear: how often companies report their financial information could reshape how all investors manage their portfolios.

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[1]. Investopedia. “SEC Form 10-Q: Definition, Deadlines for Filing, and Components”

[2]. CNBC. “Trump advocates end to quarterly earnings reports”

[3]. Wall Street Journal. “Short-Termism Is Harming the Economy”

[4]. CFA Institute. “Impact of Reporting Frequency on UK Public Companies”

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.