The US Securities and Exchange Commission (SEC) is reportedly reviewing whether to end the long-standing practice of quarterly earnings reporting for publicly listed companies. The move could mark one of the biggest shifts in American corporate disclosure in decades.
Quarterly earnings statements have been a core requirement for US companies, giving investors a regular snapshot of financial health. However, critics argue that the practice encourages short-term thinking, pushing companies to focus on meeting three-month targets rather than long-term strategy.
Supporters of the change believe that reducing the frequency of reporting to half-yearly or annual updates would give businesses more flexibility, reduce compliance costs, and allow leadership teams to focus on sustainable growth. They point to other global markets, including the UK and parts of Europe, where companies operate without mandatory quarterly disclosures and still maintain strong investor confidence.
On the other hand, investor groups have expressed concern that ending quarterly reports could lead to less transparency and fewer opportunities to evaluate corporate performance. They argue that regular disclosures help ensure accountability and provide early warnings of financial trouble.
The SEC has not yet made a final decision, but officials confirmed that discussions are underway and public feedback will be sought before any rule changes are introduced. Analysts say any decision will likely weigh the balance between reducing regulatory burdens on companies and maintaining investor trust.
If adopted, the change could reshape how Wall Street tracks corporate America, shifting the focus from short-term profit metrics to longer-term growth strategies. For now, investors and businesses alike are watching closely as the SEC weighs its options.
