President Donald Trump on Monday suggested a shift in corporate financial reporting that would be seen by many executives as a welcome change: requiring companies to report earnings only twice a year instead of the current quarterly schedule.
In a post on Truth Social, Trump’s own social media platform, he outlined his vision for what he described as a simpler, more business-friendly reporting cadence. “Subject to SEC Approval, Companies and Corporations should no longer be forced to ‘Report’ on a quarterly basis (Quarterly Reporting!), but rather to Report on a ‘Six (6) Month Basis,’” Trump wrote.
“This will save money, and allow managers to focus on properly running their companies,” he added. “Did you ever hear the statement that, ‘China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???’ Not good!!!”
In the United States, public companies are currently required to release financial results every quarter under the Securities Exchange Act of 1934, which empowers the SEC to enforce these reporting obligations. By contrast, most European exchanges mandate only semiannual reports, highlighting the differences in global financial reporting standards.
Trump’s perspective on quarterly reporting is informed in part by his own experience with the SEC. In 2002, his company Trump Hotels & Casino Resorts settled with the regulator over a 1999 report in which “adjusted” earnings included a $17.2 million one-time gain while excluding an $81.2 million charge. The settlement resurfaced during his first presidential campaign amid debates in the investment community over the merits of GAAP versus non-GAAP (or “adjusted”) financial reporting. GAAP provides standardized accounting measures required by U.S. law, while non-GAAP allows companies to include or exclude certain items to reflect what management believes is a clearer picture of operational performance.
Trump’s proposal aligns with a broader critique of quarterly reporting that has been voiced by some of the world’s most respected investors. Warren Buffett, the long-serving CEO of Berkshire Hathaway (BRK-B), has never conducted a quarterly earnings call and has repeatedly criticized the practice of adjusted financial reporting. In his 2022 shareholder letter, Buffett cautioned:
“Even the operating earnings figure that we favor can easily be manipulated by managers who wish to do so. Such tampering is often thought of as sophisticated by CEOs, directors and their advisors. Reporters and analysts embrace its existence as well. Beating ‘expectations’ is heralded as a managerial triumph. That activity is disgusting. It requires no talent to manipulate numbers: Only a deep desire to deceive is required. ‘Bold imaginative accounting,’ as a CEO once described his deception to me, has become one of the shames of capitalism.”
Trump’s comments suggest he sees a semiannual schedule as a way to reduce the administrative and strategic burden on corporate leaders, freeing executives to concentrate on long-term business growth rather than short-term reporting cycles. While any change would require SEC approval, the president’s call adds to ongoing discussions about how financial transparency, investor expectations, and corporate strategy can be balanced in an era of global competition.
As the debate continues, corporate America is watching closely, weighing the potential benefits of reduced reporting frequency against the expectations of investors, analysts, and regulators who rely on quarterly disclosures to assess company performance.
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