Sales Y/Y TTM
Year-over-year sales growth rate
💡 What is Sales Y/Y TTM (Year-over-Year Revenue Growth Rate)?
Sales Y/Y TTM is a metric that shows, as a percentage (%), how much revenue has grown by comparing the most recent 12 months of revenue (TTM: Trailing Twelve Months) to the same 12-month period one year earlier. In simple terms, it is a key growth indicator that shows "how much revenue has increased (or decreased) compared to last year."
Let me explain with an analogy. If you earned 10 million won from your lemonade stand last year and 13 million won this year, your revenue grew by 30%. That is exactly what a Sales Y/Y (Year over Year) of +30% means. When you add "TTM" to it, it means the calculation is based on the sum of the most recent four quarters (12 months) rather than a specific single quarter.
The reason TTM is used is to remove seasonal bias. For example, Apple (AAPL) sees a big revenue jump every Q4 (October–December) due to new iPhone launches, while Q2 (April–June) tends to be relatively weak. If you only looked at Q4, revenue would appear amazingly high, and if you only looked at Q2, it would look weak. TTM sums up all four quarters, naturally smoothing out these seasonal effects and giving a more accurate picture of a company's true growth trend.
Revenue growth rate is one of the most basic and important metrics for judging a company's health. No matter how high current profits are, if revenue is shrinking, the company's future is not bright. On the flip side, even if a company is currently losing money, if revenue is growing rapidly, profits can explode once it achieves economies of scale. Amazon (AMZN) is the textbook example of a company that grew into one of the world's largest companies using exactly this strategy.
📐 How is Sales Y/Y TTM Calculated?
Sales Y/Y TTM Formula:
Sales Y/Y TTM = (Most recent 12 months revenue − Revenue from the same 12-month period one year ago) / Revenue from the same 12-month period one year ago × 100%
Most recent 12 months revenue (TTM) = Sum of the most recent four quarters of revenue
Let me give a concrete example. Suppose we take NVIDIA (NVDA) as of 2025. If the most recent four quarters of revenue are $25 billion, $26 billion, $28 billion, and $30 billion, then the most recent 12-month revenue (TTM) is $109 billion. If the sum of the same period one year ago was $60 billion, then Sales Y/Y TTM = (109 − 60) / 60 × 100 = approximately 81.7%. In other words, NVIDIA's revenue grew about 82% compared to the previous year.
Quarterly revenue data can be found in the earnings reports companies release every quarter. U.S. companies are required to file 10-Q (quarterly reports) and 10-K (annual reports) with the SEC (Securities and Exchange Commission), so revenue data is publicly available. You can also check this metric directly on each stock's page on USStockToday.
📊 How to Interpret Sales Y/Y TTM Numbers
High Growth (+20% or more)
Revenue is increasing rapidly. This could be due to market share expansion, successful new products, or entry into new markets. Good examples include NVIDIA (NVDA)'s exploding demand for AI chips and Tesla (TSLA)'s ramp-up of EV production. However, you must always check whether such high growth is sustainable.
Steady Growth (+5~20%)
The company is maintaining a healthy growth pace. Most quality large-cap stocks fall into this range. Companies like Apple (AAPL), Microsoft (MSFT), and Johnson & Johnson (JNJ) consistently post growth at this level. Since it is higher than GDP growth, it can be considered above-average market growth.
Low Growth (0~5%)
Revenue growth has stalled. This is common in mature industries or highly competitive markets. It is not necessarily bad—it can return value to shareholders through high dividends or share buybacks. Companies like Coca-Cola (KO) and AT&T (T) often fall into this range.
Negative Growth (Below 0%)
Revenue is declining. This could mean the company is losing in market competition or that the industry itself is in decline. You must distinguish whether this is a temporary cyclical downturn or a structural decline. A temporary revenue decline caused by a recession is recoverable, but a revenue decline caused by structural issues in the business model can be fatal for long-term investing.
It is important to look not just at the number but at the trend of the growth rate. If growth is decelerating from 50% to 30% and then 20%, it is still positive but is a signal of "slowing down." On the other hand, if it improves from −5% to 0% and then +5%, the growth rate itself is still low, but it suggests a "potential turnaround." Checking the Sales Y/Y TTM trend over the past 2–3 years on a graph lets you grasp such trends at a glance.
🔄 Comparing Sales Y/Y TTM with Similar Metrics
Sales Y/Y TTM vs. Sales Q/Q (Quarter-over-Quarter Revenue Growth)
Sales Q/Q shows revenue change compared to the immediately previous quarter, while Sales Y/Y TTM shows the change compared to the same period one year earlier. Q/Q can be heavily influenced by seasonal factors (for example, retailers see a big sales surge in the Q4 holiday season), so Y/Y TTM provides a more balanced view. However, Q/Q captures recent changes faster, so the ideal approach is to look at both metrics together.
Sales Y/Y TTM vs. EPS Y/Y TTM (Earnings Per Share Growth)
Sales Y/Y TTM shows revenue (top line) growth, while EPS Y/Y TTM shows earnings (bottom line) growth. Ideally, both metrics grow together. If revenue grows but earnings shrink, there may be a cost management problem. If revenue is flat but earnings grow, the company has improved profitability through cost cuts, but the sustainability is questionable.
Sales Y/Y TTM vs. Sales Past 3–5Y (3–5 Year Average Revenue Growth)
Sales Y/Y TTM shows growth over the most recent year, while Sales Past 3–5Y shows the medium- to long-term average growth. If the recent one-year growth is higher than the 3–5 year average, growth is accelerating; if lower, it is slowing down. For long-term investors, the medium- to long-term trend may be more meaningful, but to capture recent changes, the TTM metric must also be checked.
🎯 Practical Ways to Use Sales Y/Y TTM
1. A Key Filter for Growth Stock Screening
When searching for growth stocks in a stock screener, Sales Y/Y TTM is one of the first filters you should set. For example, if you set a filter like "Revenue growth 20% or more + Market cap $10 billion or more," you can find companies with proven scale that are also growing fast. Adding profitability metrics like operating margin or free cash flow makes your screening even more refined.
2. Analysis Around Earnings Releases
Check the change in Sales Y/Y TTM after each quarterly earnings release. Revenue growth that beats market expectations (consensus) is a powerful catalyst for stock price gains. Conversely, growth that falls short of expectations causes the stock to drop after the release. NVIDIA is a perfect example: every quarter from 2023 to 2024 when it reported revenue growth far above market expectations, its stock surged.
3. Valuation Combined with the PEG Ratio
Check whether a high P/E (price-to-earnings ratio) is justified by a high revenue growth rate. Even a P/E of 50 can be reasonable if revenue is growing at 50% or more annually. On the other hand, if the P/E is 30 but revenue growth is only 5%, the stock may be overvalued. Build the habit of looking at revenue growth, earnings growth, and valuation together.
4. Tracking Market Share Changes Against Competitors
By comparing the Sales Y/Y TTM of several companies in the same industry, you can infer how market share is shifting. For example, in the cloud market, comparing the revenue growth rates of AWS (Amazon), Azure (Microsoft), and GCP (Google) reveals which company is gaining share. If the entire industry is growing but a particular company is growing faster, that is a signal it is gaining a competitive edge.
🏭 Sales Y/Y TTM Characteristics by Industry
Technology / Software
This sector is expected to deliver high growth rates (20–50%+). SaaS (software-as-a-service) companies in particular can grow steadily thanks to the subscription model. Structural growth drivers such as cloud migration and AI adoption are clear. However, large-cap tech companies that have entered maturity may see growth slow to single digits.
Consumer Staples
A low but stable growth rate (2–8%) is typical. The main drivers are population growth and inflation-driven natural growth. Companies like Coca-Cola (KO) and Procter & Gamble (PG) create shareholder value through stable dividends and share buybacks rather than revenue growth.
Energy
Revenue is heavily dependent on oil and natural gas prices, so volatility is high. When oil prices spike, revenue can jump 50% or more; when they fall, it can turn negative. Therefore, in the energy sector, it is important to look at production volume changes and cost efficiency alongside revenue growth.
Healthcare / Pharmaceuticals
Revenue growth can swing widely depending on new drug launches and patent expirations. The launch of a blockbuster drug can send revenue soaring, while the expiration of a major drug's patent can cause revenue to plummet due to generic competition. Eli Lilly (LLY)'s explosive revenue growth from its obesity treatment is a recent representative example.
⚠️ Things to Watch Out For When Looking at Sales Y/Y TTM
First, watch out for the base effect. If revenue was abnormally low last year due to a special event like COVID-19, simply returning to normal this year can produce an artificially high growth rate. Conversely, if last year was abnormally high, this year's growth rate can look low. To understand such base effects, it is best to look at the revenue trend over the past 2–3 years. Zoom (ZM)'s revenue surged during the pandemic, then saw its growth rate plummet in 2022 due to the base effect, which is a representative example.
Second, distinguish revenue increases caused by M&A. When a company acquires another company, the acquired company's revenue is consolidated, which can make the growth rate look higher. This is "inorganic growth" rather than "organic growth." To assess true business competitiveness, you should check the organic revenue growth rate that excludes acquisition effects. Companies often disclose "Organic Revenue Growth" separately in their earnings materials.
Third, check the quality of revenue. Even if revenue is growing, if it came from heavy discounting that lowered margins, it may not represent real value creation. Always check whether operating margin is being maintained or improving alongside revenue growth. If revenue is up 30% but operating profit is up only 10%, the company may be sacrificing profitability for growth.
Fourth, account for currency effects. For global companies, a strong or weak dollar affects revenue. A strong dollar reduces the dollar-converted value of overseas revenue, making the growth rate look weaker; a weak dollar has the opposite effect. Many companies also disclose "constant currency" growth separately in their earnings releases—referring to this helps you identify pure business growth.
✅ Sales Y/Y TTM Checklist
☑ Have I checked the revenue growth trend over the past 2–3 years to determine whether it is accelerating or slowing?
☑ Have I compared it with the revenue growth rates of competitors in the same industry?
☑ Have I checked whether there is a base effect (abnormal revenue last year)?
☑ Have I checked whether inorganic growth from M&A is included?
☑ Have I checked whether profit margins are being maintained or improved alongside revenue growth?
☑ Have I identified the pure growth rate that accounts for currency effects?
❓ Frequently Asked Questions (FAQ)
Q. Is a negative Sales Y/Y TTM always bad?
A. Not necessarily. Revenue can decline temporarily due to a cyclical recession, the strategic discontinuation of a specific product line, or business restructuring. What matters is why it declined. You need to distinguish whether it is a structural problem (market shrinkage, loss of competitiveness) or a temporary factor (business cycle, inventory adjustment). If it is a temporary factor, the recovery could actually present a buying opportunity.
Q. Is a stock with a higher revenue growth rate always better?
A. High revenue growth is good, but it does not by itself make a stock a good investment. You also need to consider the sustainability of the growth, profitability, and valuation (whether the stock price already reflects the growth). Even a company growing at 100% per year could have a P/E of 200, meaning the high growth is already priced in—and the moment growth slows, the stock could plummet.
Q. Can I use annual revenue growth rate instead of TTM?
A. It is possible, but TTM reflects more up-to-date information. Annual reports are released only after the fiscal year ends, so the data can be several months old. TTM uses the most recent four quarters, so it is always current. For example, as of June 2025, the 2024 annual data is already six months old, but TTM reflects the latest data from July 2024 through June 2025.
Q. Does revenue growth rate move in proportion to stock price gains?
A. The correlation is high over the long term, but not necessarily in the short term. The stock price reflects "expectations," so if the market already expected high growth, even strong actual growth may not push the price up (buy the rumor, sell the news). Conversely, even slightly higher-than-expected growth can drive a big rally. Therefore, it is important to consider not only the absolute growth rate but also how it stacks up against market expectations (consensus).
🇰🇷 Notes for Korean Investors
Pay attention to U.S. companies' fiscal year-end. Most Korean companies use January–December as their fiscal year, but U.S. companies vary by company. Apple's fiscal year ends in October, and Microsoft's ends in June. TTM automatically adjusts for such differences, but when comparing individual quarterly data, you need to confirm the fiscal year basis.
Be careful when comparing growth rates of Korean and U.S. companies. U.S. companies operate in global markets, so the scale and duration of their growth can differ from Korean companies. Rather than directly comparing the revenue growth rates of Samsung Electronics and NVIDIA, it is more meaningful to understand each one's relative position within its own industry.
Check the earnings release schedule in advance. U.S. company earnings releases usually take place in the early morning hours Korean time. When revenue growth significantly beats or misses market expectations, the stock price can move sharply in after-hours trading. Check the earnings calendar for U.S. companies on your domestic brokerage app, and for important stocks, plan your trading strategy before the earnings release.
Consider tax strategy when investing in growth stocks. If you invest early in a company with high revenue growth and hold for the long term, you can minimize your capital gains tax burden while benefiting from the compounding effect. Frequent trading triggers capital gains tax every time, so finding true growth stocks and holding them long-term can be more favorable for after-tax returns. Plan your selling timing to make effective use of the annual capital gains basic exemption of 2.5 million won.