SEC proposes semiannual earnings reports, sparking unprecedented public backlash

The Securities and Exchange Commission is considering a rule that would let public companies choose to disclose earnings semiannually rather than every quarter, citing potential savings of about $200,000 per firm and a shift toward long-term focus. Since the comment period began in May 2026, more than 280,000 letters—over 99% opposing—have been filed, a volume unprecedented in the agency’s history. Opponents fear the move will diminish market transparency, make capital more expensive, and limit investors’ ability to spot problems early.

Industry responses are mixed: Eli Lilly expressed support for the option, while groups like the Securities Industry and Financial Markets Association and Federated Hermes warned of higher risk premiums and reduced analyst coverage. The SEC’s leadership, including Chair Paul Atkins, remains committed to the proposal despite vacancies that could lower the vote threshold needed for approval. A final decision is expected by late 2026.