Quarterly earnings reports have long been a source of stress for CEOs. Preparing the SEC-required 10-Q means updating financials, fielding tough analyst questions, and bracing for shareholder reactions. It’s no surprise that many leaders sometimes wish they could skip the process altogether.
Former President Donald Trump seems to agree. In a Truth Social post, he argued that eliminating quarterly reports would “save money and allow managers to focus on properly running their companies.” The Securities and Exchange Commission (SEC), which has mandated quarterly filings since 1970, is reportedly making Trump’s proposal a priority.
But what do CEOs think?
Surprisingly, many business leaders admit that while quarterly reporting is demanding, it also has real benefits. It enforces discipline, accountability, and transparency. One CEO summed it up: “It imposes internal rigor, too.”
Brad Jacobs, chairman and CEO of QXO, has taken multiple companies public and sees quarterly filings as part of the deal. As he put it: “You get a report card every 90 days. Thousands of people vote with their wallets on how you’re doing.” In his view, the process reinforces credibility and keeps management sharp.
That said, there’s one part of the tradition many leaders would happily ditch—quarterly guidance. Pressure to predict future performance often leads to short-term thinking. Even Warren Buffett at Berkshire Hathaway and Amazon’s leadership have avoided giving guidance, yet they’ve still delivered impressive long-term results. Companies like GM, Starbucks, and UnitedHealth also paused guidance during uncertain times, but none objected to filing their reports.
So, do earnings reports encourage short-term decision-making? Maybe—for leaders focused only on the next quarter. But investors tend to place a premium on transparency. Public companies get better access to capital because they disclose more, and with that comes responsibility. As Jacobs and others suggest, quarterly reporting might be a hassle, but it’s also a powerful tool for building trust.
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