Corporate & Securities Blog

After months of speculation, the SEC on May 5, 2026 announced a rule proposal that would give public companies the option of reporting earnings results every six months instead of every three—eschewing a decades-long requirement under federal securities laws.

Under current rules, reporting companies must share earnings results each quarter on Form 10-Q. If adopted, the SEC’s proposed rule would allow these companies to elect to file semiannual reports on a new Form 10-S instead, resulting in one semiannual report and one annual report each fiscal year. The filing deadline for semiannual reports would be 40 or 45 days after the end of the first semiannual period of the year, depending on the issuer’s filer status. In addition, the proposal would amend Regulation S-X to reflect the new semiannual disclosure option and simplify existing financial statement requirements.

SEC Chairman Paul Atkins framed the initiative as part of his agenda to “Make IPOs Great Again,” noting the “rigidity” of the current rules has “prevented companies and their investors from determining for themselves the interim reporting frequency that best serves their business needs and investors.” Atkins described the rulemaking as the “first step” of the SEC’s broader campaign to overhaul the disclosure regime and reduce regulatory friction for public companies seeking to raise capital in the public markets.  The proposal follows a push by President Trump, who has urged the SEC to permit semiannual reporting since his first term in office. A White House official praised the SEC’s announcement, stating the President wants corporate America to forego “short-termism” and embrace “long-range planning and investment.”

In a statement supporting the proposal, SEC Commissioner Mark Uyeda argued the reporting framework, built roughly 75 years ago for a manufacturing-era market, should not be presumed to work optimally for all companies today. Uyeda also cautioned that outsized emphasis on quarterly performance can divert management’s attention from long-term execution and impose compliance burdens that fail to yield proportionate value for investors. Indeed, proponents of the semiannual framework argue less frequent reporting could reduce costs, facilitate long-term growth, and reduce barriers for companies to go—and remain—public. The proposal, however, is not without its critics, as some have suggested quarterly earnings disclosure fosters market transparency and stability.

While some companies may welcome the SEC’s new directive, others may choose to continue reporting quarterly due to investor demand, industry norm, or other contractual obligations. Once the SEC publishes the proposal in the Federal Register, the proposed rule will be subject to a 60-day public comment period, after which the Commission will vote on the final rule. Until then, issuers should carefully consider what reporting cadence best serves their business needs and investor expectations.