A major change in the corporate American calendar: the transition from quarterly to semi-annual reporting.
On Monday, US President Donald Trump reiterated his support for what could be a major change in the corporate American calendar: a shift from quarterly to semi-annual reporting.
Repeating his previous call from 2018, Trump defended the change, arguing that it would help reduce costs and allow company executives to focus on long-term goals rather than hitting frequent metrics.
"This will save money and allow managers to focus on running their companies properly," Trump said.
The Securities and Exchange Commission, which has said it will prioritize the change, currently requires companies to publish financial statements every 90 days—a difference from the UK and some European countries, which require semi-annual reporting.
"The SEC likely has the authority to do this, and we assume they will work on it under Trump's orders," said analysts at Wolfe Research.
"Given the Trump administration's statements about oversight of independent agencies and the SEC's announcement that they are working on it, we anticipate some version of this idea will be proposed through SEC rulemaking in the coming months."
Trump's idea is aimed at winning the support of company executives, who must adhere to the long-established rhythm of three-monthly updates. The quarterly reporting requirement was first introduced in 1970, and its critics, including JPMorgan Chase CEO Jamie Dimon and legendary investor Warren Buffett, have argued that the short-termism inherent in the rule threatens the U.S. economy.
However, some investors have noted that the shift to semi-annual reporting could lead to less oversight, making it easier for companies to hide or delay unfavorable financial news. As a result, the attractiveness of U.S. equities could suffer, they warned, adding that greater transparency was a key reason why Wall Street stocks often trade at a premium to their international peers.
In their note, Wolfe Research analysts predicted that the process of implementing the changes "should stretch into the second half of 2026, if not longer," adding that there was a possibility it could "fizzle out" due to the number of objections received during the SEC's "notice and comment" phase. However, the strategists said that if this remains a priority for Trump, the SEC would continue the process despite any public resistance.
"The likelihood that this will be accomplished is likely [greater than] 50%," they wrote.
"The likelihood that this will be accomplished is likely [greater than] 50%," they wrote, adding that they do not see this shift being "dramatically negative" for the investment industry.
Non-catalytic stock events, such as investor days and conferences, may become more frequent due to the change in reporting period, while the relative infrequency of reports may mean they will drive larger share price movements, the analysts stated.
"It is not clear to us that the transition from quarterly to semi-annual reporting will mechanically reduce aggregate returns. The transition to semi-annual reporting will obviously require adaptation by the industry, but it is not clear that quarterly frequency is a magic bullet for optimizing returns, and we suspect that institutional investors will survive this transition," they stated.