Would Fewer Earnings Reports Mean More Market Volatility?

President Donald Trump is once again floating the idea of cutting the number of corporate earnings reports in half — from four to two per year. The proposal, first raised during his presidency in 2018, would have U.S. public companies report every six months instead of quarterly. While it may sound like a way to reduce red tape, such a change could make markets even more volatile around earnings season.

Quarterly reporting is undeniably expensive and time-consuming. Each release requires armies of accountants, executive review, board oversight, and regulatory compliance. Reducing this workload would free up resources and might allow management teams to focus on running their businesses rather than preparing for the next conference call. It could also help reduce the so-called “short-termism” that quarterly results encourage — the tendency of executives to chase immediate profits rather than build long-term value.

Many argue that the constant pressure of meeting Wall Street’s quarterly expectations distracts management from strategic decision-making. When success is measured every 90 days, it’s easy to prioritize quick wins — cost cuts, share buybacks, or temporary boosts to earnings — rather than investing in research, innovation, or talent development that may not pay off for years. Moving to semiannual reporting could, in theory, give leaders more breathing room to think beyond the next quarter.

At our firm, we listen to quarterly conference calls for all the companies whose stock our clients own. Whether the revenue or profit comes in a few percentage points ahead or behind expectations doesn’t change our view of the business. What matters more is hearing directly from management about the competitive environment, upcoming challenges, and how their long-term strategy is progressing. Those insights help us continually test and refine our investment thesis. Frankly, we’d much rather listen to four conference calls a year than two — because consistent communication keeps us informed, engaged, and better equipped to act in our clients’ best interests.

Just as public companies report to shareholders, we report to our clients each month — showing every investment they own, the profits or losses on each, and all recent transactions.

Transparency comes with a cost for a reason. Regular reporting keeps companies accountable to investors, employees, and regulators. If the SEC adopted a semiannual reporting model — similar to what exists in the European Union — investors would have fewer checkpoints to evaluate a company’s performance. That information gap could amplify speculation between reporting periods. With less data to rely on, markets may overreact to rumors, social media posts, or incomplete information — triggering sharper price swings when actual results are finally released.

In short, eliminating quarterly reporting might ease corporate burdens but at the expense of market stability. For long-term investors, fewer updates could mean less insight. For traders, it could mean wilder rides. Either way, fewer reports likely wouldn’t make markets calmer — just quieter in between, and louder when the numbers finally drop.

-written by Jeff Pollock