WHAT ARE FINANCIAL YEARS
AND FISCAL QUARTERS?

Interested in what standard calendar periods are and what makes them different from fiscal years and quarters? Learn what they are and what sets them apart.

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Terms such as calendar quarters and fiscal (or financial) quarters are often used when discussing stocks and financial reports. But what do they mean, and how do they differ from each other? 

And what are calendar years and fiscal years? Isn’t a “year” identical no matter how you define it? Actually, no — they’re not quite the same thing.

Read on to discover what you should know about fiscal years and fiscal quarters.

What is a financial quarter (Q1, Q2, Q3, Q4)?

A fiscal (or financial) quarter is a three-month period within a company’s fiscal year.

It is a set period of time (3 months) designed for regular financial reporting and paying dividends.

These shorthand abbreviations define the four fiscal quarters:

• Q1: the first quarter
• Q2: the second quarter
• Q3: the third quarter
• Q4: the fourth quarter

Calendar vs fiscal quarters

Calendar quarters follow the standard Gregorian calendar and are the same around the world. Standard calendar quarters are as follows:

• Q1 2024: January 1 to March 31
• Q2 2024: April 1 to June 30
• Q3 2024: July 1 to September 30
• Q4 2024: October 1 to December 31

Fiscal quarters divide up a company’s fiscal year into four quarters in the same way, but the company may choose a different starting date.

For example, Apple chooses to begin its fiscal year on October 1 every year, so these are the dates for its fiscal quarters:

• Q1: October 1–December 31
• Q2: January 1–March 31
• Q3: April 1–June 30
• Q4: July 1–September 30

Does eToro use calendar or fiscal quarters?

eToro is a global exchange and adopts the preferred method for each region. In some regions, calendar quarters are used, and in others, fiscal quarters are preferred.

How do fiscal quarters work?

For example, the US government starts its fiscal year on October 1, when Congress returns from the summer break.

How are fiscal quarters used by companies?

Public companies in the US are obliged to produce quarterly earnings reports. Many also pay dividends and taxes quarterly. 

While companies in some parts of the world, such as Europe, the UK, and the US, deliver earnings reports on a quarterly basis, it is worth noting that in some countries, such as Australia, these reports are delivered semi-annually. eToro’s Earnings Reports Calendar can be a useful resource if you are interested in when upcoming earnings reports are due to be released by some of the world’s top publicly traded companies.

Their choice of fiscal quarters can have a significant effect on their cash flow, dividends and share price. For retailers, finishing their fiscal year after the Christmas sales boom paints a rosy picture of their yearly profits and, therefore, supports their share price.

Some companies, such as Meta and Amazon, choose to stick to calendar years for financial reporting and tax purposes.

How are fiscal quarters viewed around the world?

Fiscal quarters vary around the world. Much like the US, Australia’s government has chosen dates that don’t interrupt the summer holiday season. The Japanese, for their part, are attuned to the seasons and believe a new fiscal year should start in spring. The UK’s choice of fiscal quarters, on the other hand, involves an astonishing tale of Pope Gregory XIII, the Julian Calendar, and “robbing” its citizens of 11 days of their year.

Here are some countries and their fiscal years:

• Australia — July 1 to June 30
• China — January 1 to December 31
• Japan — April 1 to March 31
• UK — April 6 to April 5
• USA — October 1 to September 30

Having a good understanding of fiscal years and fiscal quarters is important, whether you are looking to invest locally or in international markets. Knowing when to expect dividends, earnings reports and performance updates can assist you in planning your finances and help shape the way you invest.

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FAQs

What are the financial year dates?

Financial year dates vary from company to company and from country to country, unlike calendar year dates.

Why do companies have different fiscal years?

When a company is incorporated, those running it have the freedom to select a fiscal year start and end date, meaning that fiscal years can start at very different times of the year. These dates might align with fluctuations within their industry, peak performance periods and other considerations.

What does Q2 2024 mean?

Q2 2024 means the second quarter in 2024, a calendar quarter, starting from April 1 and running through to June 30, 2024.

What is FY 2024?

FY stands for the financial or fiscal year. The start and end dates of FY 2024 will vary, as decided by companies and governments. The period will, however, start at some point during 2024.

When are earnings reports released?

If a company delivers its earnings reports quarterly, it will typically do so a few weeks after the quarter ends. For example, standard Q1 earnings reports will generally be released in mid-April, Q2 reports in mid-July, Q3 reports in mid-October and Q4 reports in mid-January. It is important to remember that not all companies and countries use standard calendar quarters, so earnings release dates may vary.