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Time to Rethink Quarterly Earnings Reports
When Trump called for ending quarterly reporting, critics focused on politics. But the idea itself could reduce short-termism, cut costs, and bring U.S. markets in line with global norms.
Last week, President Trump briefly grabbed headlines by suggesting the U.S. should end quarterly earnings reporting. Many dismissed it as another political maneuver. Yet, setting aside the messenger, the proposal has merit. In fact, it echoes long-standing concerns from investors, governance experts, and executives that quarterly reports do more harm than good.
Quarterly earnings reports have long been a cornerstone of U.S. capital markets. Every three months, publicly traded companies disclose their financial results, giving investors a snapshot of performance. On the surface, this cadence seems sensible: more data should mean more transparency and better decision-making.
But the evidence tells a different story. Quarterly reporting has created powerful incentives for short-termism, imposed heavy compliance costs, and reduced meaningful communication between executives and investors. It also makes the United States an outlier internationally, with only China sharing its quarterly mandate.
