President Donald Trump's plan to scrap the quarterly earnings reporting requirement for public companies has sparked a sharp debate among market commentators, with opinions split on whether the move would strengthen or weaken U.S. equity markets.
Move Could Erode Transparency
Analyst Joseph Carlson dismissed the argument that quarterly reports drive short-term thinking. “The idea that reporting numbers on a quarterly basis makes the company short-term focused is nonsense,” he said.
He pointed to U.S. companies making record-long-term investments in AI infrastructure and cited Costco Wholesale Corp. (NASDAQ:COST), which reports monthly sales but still operates with a long-term focus. He warned that the real risk is diminished transparency.
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Carlson cautioned that eliminating quarterly earnings could leave investors “more opaque, less updated, and [facing] worse pricing for stocks.” He added that without timely reporting, “companies could be struggling for 5 months before investors have any idea.” He says, the bottom line is simple, “Transparency is a good thing.”
’90-Day Cycle’ Is Not How Businesses Operate
Other experts and analysts have, however, come out in support of Trump’s plans, with Market strategist Tom Lee saying, “A 90-day cycle is not how business operates. This is why so many companies are staying private.” He said moving away from the current cadence would ease public-market pressure.
Similarly, economist Trinh Nguyen expressed her support for the move, noting that several developed markets already operate without quarterly mandates.
“Should the US drop quarterly earnings? Well, the UK doesn’t require it and neither does the EU,” Trinh said, pointing out that even influential figures like BlackRock CEO Larry Fink and former Secretary of State Hillary Clinton have favored the idea.
“It's one of the reforms people think will reduce shorterm-ism that is rather bipartisan,” she says.
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