Boards and management teams invest enormous time and resources into quarterly earnings announcements. But in today’s complex and fast-evolving business environment, we must ask an uncomfortable question: Is this still the best way to serve shareholders?

As a former CFO and current board member, I’ve seen firsthand the scale of effort behind quarterly reporting. Management teams, finance departments, auditors, investor relations professionals, and external analysts often spend weeks preparing detailed disclosures. Transparency is essential, but efficiency and relevance matter just as much.

So the real question is not whether we should report, but how we should report.

Why do quarterly announcements exist?

Quarterly reporting was introduced to ensure timely disclosure and protect investors. It provides regular snapshots of financial performance, allowing markets to price information efficiently and build trust through consistency.

At its best, quarterly reporting promotes accountability, comparability, and discipline. But as markets and business models evolve, its limitations are becoming harder to ignore.

The pros and cons of quarterly reporting

The Benefits

Quarterly announcements have clear advantages:

• They enhance transparency and investor trust

• They improve market efficiency through frequent disclosures

• They create performance discipline within management teams

The challenges

However, the drawbacks are increasingly evident:

• Short-termism: Many CEOs argue that quarterly targets encourage decisions that prioritise near-term earnings over long-term value creation. As Jamie Dimon once observed, quarterly forecasts often push leaders “with their backs against the wall.”

• Cost and complexity: Preparing, reviewing, and auditing quarterly reports consumes significant financial and human resources.

• Market volatility: Earnings seasons can amplify market swings that are sometimes disconnected from underlying fundamentals.

Can we achieve the same outcomes without the full drill?

Several alternatives are gaining traction globally, suggesting that frequent disclosure does not always require exhaustive reporting.

Some markets have already moved away from mandatory quarterly reporting. The UK and parts of the EU rolled back quarterly requirements years ago without sacrificing investor confidence.

Other emerging approaches include:

• Directional guidance: Strategic updates that focus on trajectory and priorities rather than granular financial line items

• Digital investor dashboards: Real-time portals that provide continuous access to key metrics instead of static quarterly PDFs

These models aim to deliver insight rather than volume.

Best practices emerging today

Leading companies are already experimenting with smarter disclosure models.

Many large enterprises combine financial highlights with strategic narrative, helping investors understand not just the numbers, but the story behind them. Others extend engagement beyond formal reports through earnings calls, interactive dashboards, and digital communication channels that keep stakeholders informed without overwhelming them.

The common thread is simple: context matters as much as data.

Guardrails for any change

Quarterly reporting should not be dismantled indiscriminately. Any evolution must be accompanied by clear safeguards.

Key considerations include:

• Industry sensitivity: High-volatility sectors such as banking and insurance may require more frequent reporting

• Company size: Large-cap firms likely need stricter disclosure cadence than smaller peers

• Flexibility with accountability: Companies could be allowed to choose quarterly or semi-annual reporting, while remaining obligated to disclose material events promptly

The goal is not less transparency, but better transparency.

The bottom line

Shareholders deserve clarity, not clutter. In many cases, quarterly announcements have become exercises in compliance rather than communication.

A leaner, smarter reporting model, focused on directional guidance, strategic execution, and material developments, can preserve transparency while reducing inefficiency and short-term bias.

As Warren Buffett and Jamie Dimon have both argued, an excessive focus on quarterly guidance can distort decision-making and undermine long-term value creation.

It is time for boards, regulators, and investors to ask a fundamental question:

Are we measuring what truly matters?

Your view

Should quarterly reporting evolve into a more strategic and less mechanical exercise?
I’d be interested to hear your thoughts.