Do We Really Need Quarterly Earnings?

One of the bigger debates resurfacing in the markets is whether companies should report earnings every quarter - or just twice a year. President Trump has once again floated the idea of cutting back the reporting cycle. It’s not a brand-new conversation. Back in 2018, he raised the same question, and leaders like Warren Buffett and JPMorgan’s Jamie Dimon agreed the system might need rethinking.

This time, I believe the proposal deserves real consideration. As a long-term investor, I see more upside than downside to moving toward semiannual reporting.

Right now, corporate America runs on a short leash. Every 90 days, management teams scramble to meet Wall Street’s expectations. That cycle often forces companies into making decisions that look good in the short term - but don’t necessarily create sustainable value.

Cutting reporting to twice a year could break that treadmill. CEOs and CFOs would have more room to think big, to invest in innovation, to build five- and ten-year strategies instead of worrying about what analysts say about the next quarter’s margins. That shift could actually strengthen America’s competitive edge.

For individual investors, fewer reports could also nudge behavior in the right direction. Too many people today treat earnings season like a casino - betting on whether a company “beats” or “misses” expectations. Stocks swing wildly on one- or two-cent EPS differences that have little bearing on a business’s long-term value.

By cutting the number of updates in half, we could cool down some of this short-term speculation and put the focus back where it belongs: on long-term growth, innovation, and secular trends that create generational wealth.

Of course, critics argue that less frequent reporting means less transparency. They worry it could tilt the playing field in favor of big institutions with better research resources. And yes, bi-annual results could mean more dramatic moves when they do hit.

But here’s the truth: real investors don’t need a constant drip of data to stay the course. If you’re building wealth over years and decades, not days, then two detailed updates per year is more than enough to measure progress.

I say let’s give it a shot. The stock market should reward investors - not gamblers. Moving to semiannual earnings could help shift the culture from quarter-to-quarter thinking toward the kind of long-term investing that creates real fortunes.

And as always, I’ll be watching closely to see how this plays out - because if it happens, it will change the way we all analyze and invest in companies.

Here’s to the future, 

Matt McCall
Editor, Market Insights