The U.S. Securities and Exchange Commission is preparing to advance a rule change that would allow public companies to shift from quarterly to semiannual earnings reporting, marking the most significant overhaul of disclosure rules in more than half a century. SEC Chair Paul Atkins confirmed the move after President Donald Trump renewed his call for the change, framing it as a way to cut compliance costs and shift managerial focus toward long-term strategy. Under the proposal, companies could choose between maintaining the current quarterly cadence or adopting a six-month schedule, a practice already permitted for foreign private issuers.
The agency is fast-tracking the effort, with a proposal expected by late 2025 or early 2026. While business leaders and advocates of long-termism welcome the change, investor groups and transparency advocates warn it could erode market discipline, create opportunities to defer bad news, and undermine one of the core reasons U.S. equities trade at a global premium. The debate underscores the legal and policy tensions at stake: balancing corporate flexibility and cost savings against investor protection and the integrity of disclosure regimes that have shaped U.S. markets since quarterly reporting became mandatory in 1970.
