SEC Eyes End of Mandatory Quarterly Earnings, Opening Door to Twice-Yearly Reports

The U.S. Securities and Exchange Commission (SEC) is working on a plan that could change how often public firms report results. According to a Wall Street Journal report, the idea is to make quarterly earnings optional and allow firms to report just twice a year.

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The proposal could come as early as next month, according to people familiar with the matter. After that, it would go through a public comment period and then a vote. For now, there is no clear sign that the rule will pass.

Importantly, the change would not ban quarterly reports. Instead, it would give firms the choice to report less often.

Why the SEC Is Considering the Change

For decades, firms in the U.S. have reported earnings every three months. However, some leaders now believe this pace creates pressure to focus on short-term results.

In fact, the push gained traction last year when the Long-Term Stock Exchange asked the SEC to drop the rule. Soon after, President Donald Trump and SEC Chair Paul Atkins said they support the move.

Supporters say quarterly reports take time and cost money. They also argue that fewer reports could help more firms go public. Some firms stay private to avoid the work tied to public markets.

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At the same time, the SEC has already begun talks with major exchanges about how rules may need to change. This suggests the plan is being taken seriously, even if it is still early.

A big supporter of this proposed move. President Donald Trump.

Investor Concerns and Market Impact

On the other hand, many investors rely on steady updates to track firm health. Less frequent reports could mean less clarity and more guesswork.

As the report notes, “Any change is likely to face opposition from investors who rely on the transparency of regular disclosures.” This highlights a key concern across the market.

Still, there is some global context. Europe ended the quarterly rule in 2013, and the U.K. followed soon after. Even so, many firms there still report every quarter by choice.

Looking ahead, large firms like Apple AAPL +1.08% ▲ , Microsoft MSFT +1.11% ▲ , and Nvidia NVDA +1.65% ▲ may keep quarterly updates to meet investor demand. In contrast, smaller firms may shift to twice-yearly reports to cut costs.

In the end, the rule could change the rhythm of earnings season, but market habits may not shift as fast. Investors will likely continue to push for frequent updates, even if the rule no longer requires them.

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