We measure annual reports’ readability by the standard texts complexity and the intensity of professional concepts. Based on the annual report data from 2007 to 2018, we found that analysts are more cautious with complex reports, and complex reports always increase the divergence of earnings forecasts. However, as a benchmark for earnings forecasts, past performance has a functional fixation effect on the relationship between the annual reports’ readability and analysts forecasts. Further research proved that professional skills play an essential role in interpreting complex reports and avoiding past performances functional fixation effects.