SEC Proposes Semiannual Earnings Reporting Amid Trump Support

Context Under rules in place since the 1970s, U.S. listed firms must release earnings after each fiscal quarter and annually. The SEC’s proposal would let a company opt into twice‑yearly reporting by checking a box on its next 10‑K annual filing; the switch can be made only once per year. Companies in Europe already follow a semiannual schedule, while most U.S. firms supplement filings with voluntary earnings calls and forecasts.

Key Facts SEC Chairman Paul Atkins said the proposal would give companies "increased regulatory flexibility" to choose the reporting frequency that best serves investors and business needs. Former President Trump wrote on Truth Social that ending mandatory quarterly reports would "save money" and let managers focus on running companies. Citadel founder Ken Griffin countered that withholding readily available information risks losing accountability and could raise the cost of capital. Market data shows JPMorgan Chase (JPM) with a market cap of roughly $460 billion slipped 0.4% in early trading after the announcement, while Goldman Sachs (GS) held a market cap near $120 billion and was flat. The S&P 500 index traded around 5,300 points, up 0.2% on the day.

What It Means If adopted, the shift could reduce administrative costs for firms that choose semiannual reporting, but critics warn that less frequent disclosures might impair price discovery and increase investor uncertainty. The SEC will open a 60‑day public comment period before deciding whether to finalize the rule. Investors should watch for feedback from major corporations, any changes in voluntary earnings call practices, and how the proposal influences trading volumes and bid‑ask spreads around reporting dates.